With over 30 per cent of lenders confirming they will drop their rates, after the Reserve Bank of Australia (RBA) slashed the cash rate to 1.75 per cent, some lenders are pushing rates to ‘never seen before lows' in the threes, according to rate comparison website, RateCity.
RateCity said small lender, Homestar Finance, reduced its variable rate to just 3.61 per cent and Reduce Home Loans dropped theirs to 3.65 per cent.
CANSTAR, another comparison site, said this is why borrowers should shop around, as they could be saving $369 per month on a $500,000 mortgage.
CANSTAR editor in chief, Justine Davies, said borrowers could save that much if they moved from a variable rate of 4.77 per cent to 3.50 per cent.
"So perhaps some borrowers should be trying to tap the bank of a Mum and Dad, perhaps ask Malcolm Turnbull for some tips on how to go about it, to see if a better cash position can secure them a better rate", which could save them a lot of money," Davies said.
Rates below four per cent would increasingly become the "new norm", with 20 lenders now offering rates around that mark to owner-occupiers, RateCity said.
Money editor of RateCity, Sally Tindall, said, while some lenders were making history with their record busting low rates, about 70 lenders were "extremely tight-lipped about whether or not they'll pass on this cut".
If they choose not to cut their rates, customers deserve to know, so they can hunt for a better deal, she said.
RateCity said the other "shakers" offering rates in the 3s' were:
- Loans.com.au offering 3.63 per cent
- Mortgage house, 3.64 per cent and
- Pacific Mortgage group with a new 3.70 per cent rate.