By Terry Ryder, 9th October 2012
Only four lenders have passed on the Reserve Bank interest rate cut in full.
To date 13 lenders have reduced their variable home loan rates, but most have retained at least 5 of the 25 basis points cut by the RBA.
This includes three of the four big banks, with ANZ still to announce a response to the RBA decision on 2 October.
Some lenders have passed on only 15 of the 25 basis points cut.
Financial comparison website RateCity.com.au says there is a significant difference in the amount of money borrowers will save, depending on how much their lender passes on.
“For instance, a 15 basis point rate cut to a new rate of 6.25 percent for a $300,000 mortgage is worth about $29 while a 25 basis point rate cut to 6.19 percent is about $49 per month,” says spokesperson Michelle Hutchinson.
She suggests borrowers consider switching to a better deal if they are not happy with the discount from their current lender.
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