Interest in rock-bottom mortgages have skyrocketed in the days since the Reserve Bank cash rate cut, according to comparison site Finder.
Following the drop to an unprecedented low of 1.25%, borrowers have acted swiftly to take advantage of low-rate loans. Traffic to home loan deals on Finder jumped by a staggering 654% in the 48 hours after the RBA announced the cash rate cut on 4 June.
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, says the uptick shows Aussies are becoming increasingly savvy with their finances.
“It’s great to see Aussies being proactive and looking for better value.,” he says. “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.
“Generally speaking, for those with an average home loan size of just less than $400,000, a 25 basis point drop could save you $60 a month or more. That’s more than $21,000 over thirty years.”
While the Big Four were quick to announce a rate discount following last week’s RBA decision, only two – CBA and NAB – have passed on the cut in full.
Many lenders had already reduced their rates in anticipation of the rate drop. In May, 49 lenders reduced rates on 778 different home loan products.
Cooke said now is the time to consider refinancing if your current rate is high.