Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Borrow

How the cash rate hold can still save you thousands

By Cameron Micallef · November 06 2019
Reading:
egg

Borrow

How the cash rate hold can still save you thousands

By Cameron Micallef
November 06 2019
Reading:
egg
Couple inside house

How the cash rate hold can still save you thousands

author image
By Cameron Micallef · November 06 2019
Reading:
egg
Couple inside house

While yesterday’s cash rate announcement won’t have an impact on mortgage rates, borrowers are still around $34,602 better off based on past cuts, according to new research.

Canstar data has shown borrowers who have received part of previous rate cuts will still save thousands of dollars from the previous credit reductions.

As a result, Canstar’s Effie Zahos has advised mortgage-holders that they should look to change their rates if they haven’t received the full value of previous cuts.

“Borrowers who have had their loan for three years or more and have not renegotiated a better rate with their lender are likely on an interest rate of around 4.04 per cent,” she stated.

“These home owners could be paying up to 1.35 per cent more than they need to be given the lowest variable rate today is 2.64 per cent.”

Advertisement
Advertisement

For borrowers who received 0.59 per cent of the 75 basis point reduction so far, they will have a rate that has been reduced from 4.41 per cent to 3.82 per cent.

Such a reduction means that the average borrower will be in a position to pay off their home loan four years and two months earlier than they would have otherwise.

“Borrowers maintaining their home loan repayments on pre-cut levels in a period of falling interest rates and in a record-low interest rate environment is the right combination to see home owners get ahead,” Ms Zahos outlined.

She said that borrowers can be taking advantage of favourable market conditions, including low credit rates.

She said some mortgage-holders are already catching on, “preparing for potential tougher times ahead and building a financial buffer”.

How the cash rate hold can still save you thousands
Couple inside house
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.