Web searches on rock-bottom home loan rates skyrocketed after RBA rate cut: Finder.com.au

Interest in rock-bottom mortgages skyrocketed in the days following the Reserve Bank of Australia’s (RBA) cash rate cut, according to Finder.com.au.

Finder.com.au said, following the drop to an unprecedented low of 1.25%, borrowers are acting swiftly to take advantage of low-rate loans. Traffic to home loan deals on Finder jumped by 654% in less than 48 hours since the RBA announced the cash rate cut.

Furthermore, interest in variable rates on Finder grew by 564%, while there’s been a 369% spike in those looking to refinance.

Graham Cooke, insights manager at Finder, said the uptick shows Aussies are becoming increasingly savvy with their finances.

“This historically low rate will open lots of eyes to just how good the current offers are – and that’s the case for variable and fixed rates, alike.

So far, 22 lenders have cut rates following the RBA’s decision and all indications are that more lenders will follow suit in the coming weeks.

Home loan discounts following rate cut

While the Big Four all announced a rate discount the day of the RBA's decision, only two – CBA and NAB – will pass on the cut in full. 

Many lenders had already reduced their rates in anticipation of the rate drop.

According to Finder.com.au, in May, 49 lenders reduced rates on 778 different home loan products

Cooke said, "we know the RBA cut the rate in part to help stabilise falling property prices, but many experts are predicting another cut this year, if not two."

“Rates have never been this low. If your current home loan has a ‘4’ or a ‘5’ in front of it, you could be getting a much better deal,” he concluded.