Borrow
What the RBA’s rate cut means for you
The RBA has slashed the official rate cut to a new record low of 0.10 per cent, but what does that mean for you?

What the RBA’s rate cut means for you
The RBA has slashed the official rate cut to a new record low of 0.10 per cent, but what does that mean for you?

The research shows mortgage-holders with a $400,000 loan will now save $33 dollars a month or $391 a year.
The larger the loan, the bigger the savings – with a mortgage-holder on a $500,000 loan saving $41, a $750,000 loan saving $61 and Australians owing $1,000,000 now saving $82 a month.
Research director Sally Tindall said the changes might seem minimal but could help struggling Aussies.
“A rate cut could save the average home loan customer $33 per month, which may seem like a small change to some people, but for families struggling to make ends meet, it could be the lifeline they need,” she said.
Ms Tindall said the changing rate will put immense pressure on the banks to pass on the savings to their variable home loan customers.
“At this stage, the big banks appear to be playing a game of chicken with no announcements as to whether they will pass it on to their customers.
“Call your bank, find out what they intend to do. If they don’t pass on a full cut, shop around in what remains an extremely competitive market,” she said.
Impact to savings rates
While mortgage-holders are the big winners, savers once again lose with a recent analysis showing the average ongoing savings rate is now 0.52 per cent.
This could fall to below 0.40 per cent on the back of today’s rate cut.
“The outlook for savers has just turned from gloomy to bleak, with another RBA cut today and no prospect of a rate rise for at least the next three years.
“Already a handful of banks are offering no interest on some savings accounts. While the big banks will desperately want to avoid cutting their base rates down to 0 per cent, it can’t be ruled out,” Ms Tindall concluded.
About the author

About the author


Loans
Mortgage stress reaches 3-year low
Despite mortgage-holders experiencing record levels of comfort, red flags are emerging with financial stress tipped to rise, new research has revealed. ...Read more

Loans
How to reduce your home loan turnaround time
A surge in consumers looking to borrow continues to put pressure on lenders, leading to delays in processing times, research has revealed. ...Read more

Loans
Consumer advocacy groups fight to save safe lending laws
Twenty-two thousand Australians have joined the Senate economics committee hearing to fight against proposed changes to safe lending laws, which are designed to make it easier for consumers to get th...Read more

Loans
Banking industry continues support for struggling Australians
The banking industry has announced that it will continue to support Australian mortgage-holders who have been negatively impacted by the COVID-19 pandemic. ...Read more

Loans
Commbank announces green loans
Australia’s largest bank has announced a new green loan, which home owners can use to buy and install renewable technology in the family home. ...Read more

Loans
‘A disastrous winding back of consumer protections’: Industry group warns
The government’s proposed changes to consumer lending laws will harm Australian consumers and families while hindering the economic recovery it is intended to promote, a consumer advocacy group has ...Read more

Loans
One in two Aussies does not believe banks act in their best interests when refinancing
Australians looking to take advantage of record-low interest rates are unlikely to speak with their bank, but have a high level of trust in mortgage brokers, new research has revealed. ...Read more

Loans
Home lending surge shatters records with $24bn in loans
The total value of loan commitments for investor housing rose 6 per cent month-on-month to reach $5.6 billion in November last year, as the property market heated up in the lead-up to Christmas. ...Read more

Loans
Mortgage stress reaches 3-year low
Despite mortgage-holders experiencing record levels of comfort, red flags are emerging with financial stress tipped to rise, new research has revealed. ...Read more

Loans
How to reduce your home loan turnaround time
A surge in consumers looking to borrow continues to put pressure on lenders, leading to delays in processing times, research has revealed. ...Read more

Loans
Consumer advocacy groups fight to save safe lending laws
Twenty-two thousand Australians have joined the Senate economics committee hearing to fight against proposed changes to safe lending laws, which are designed to make it easier for consumers to get th...Read more

Loans
Banking industry continues support for struggling Australians
The banking industry has announced that it will continue to support Australian mortgage-holders who have been negatively impacted by the COVID-19 pandemic. ...Read more

Loans
Commbank announces green loans
Australia’s largest bank has announced a new green loan, which home owners can use to buy and install renewable technology in the family home. ...Read more

Loans
‘A disastrous winding back of consumer protections’: Industry group warns
The government’s proposed changes to consumer lending laws will harm Australian consumers and families while hindering the economic recovery it is intended to promote, a consumer advocacy group has ...Read more

Loans
One in two Aussies does not believe banks act in their best interests when refinancing
Australians looking to take advantage of record-low interest rates are unlikely to speak with their bank, but have a high level of trust in mortgage brokers, new research has revealed. ...Read more

Loans
Home lending surge shatters records with $24bn in loans
The total value of loan commitments for investor housing rose 6 per cent month-on-month to reach $5.6 billion in November last year, as the property market heated up in the lead-up to Christmas. ...Read more