Historically low interest rates have seen lenders make almost 7,000 rate cuts to home loan products throughout 2020 – but borrowers appear disinterested in getting a better rate.
Figures collated by Canstar show that in 2020 lenders reduced 6,777 different home loans by an average of 0.30 percentage points.
These include 2,455 reductions to fixed rates for owner-occupiers, with an average cut of 0.33%, while 880 decreases were made to variable rates for owner-occupiers, with an average cut of 0.21%.
A total of 2,678 fixed-rate cuts were made for investors, with an average cut of 0.32%, while 764 reductions were made to variable rates for investors, averaging 0.21%.
Despite the potential to save money, separate survey data commissioned by Mortgage Choice found a disconnect between the increased financial concerns borrowers are experiencing and whether their interest rate is competitive.
Research by Mortgage Choice over the years has revealed a consistent decline in borrower awareness of their interest rate. In 2016, 71% of respondents knew the interest rate on their mortgage, while 62% were aware in 2017 and 60% knew their interest rate in 2018.
The latest figures have come at a time when 62% of respondents admitted that the pandemic has caused them to worry more about money, with 65% saving more, spending less, and improving their financial knowledge in an effort to boost their resilience.