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ISCOVER
Staff Reporter
One of Australia’s comparison websites has started urging borrowers to refinance.
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According to RateCity, the range between the lowest and highest standard variable home loan rates has widened by 0.43 percentage points since the top of the interest rate cycle in early 2011.
Today, the difference between the top and bottom standard variable rates in RateCity’s database is 2.01 percentage points, from 4.99 percent to 7 percent.
RateCity spokesperson Michelle Hutchison said many borrowers are missing out on big savings because of complacency and naivety.
“It’s easy to feel complacent when home loan rates have been falling and lenders have passed on most of the savings to variable borrowers, but this is in fact the best time to refinance your home loan,” she said.
“The average standard variable rate has fallen by about 1.35 percentage points since November 2011 and is now 5.96 percent. That means variable borrowers with a $300,000 home loan are saving on average about $268 per month compared to November 2011.”
