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PHOTO: MOZO<\/strong><\/p>\n RBA cuts another 25 basis points off the official cash rate, first consecutive cut since 2012<\/p>\n<\/li>\n By holding back some of the official interest rate cuts since 2016 the Big 4 banks\u2019 have pocketed approximately $125 million per month in additional revenue – $3.86 billion in total<\/p>\n<\/li>\n By delaying the effective dates of their interest rate cuts the big banks have raked in $221 million since August 2016<\/p>\n<\/li>\n If passed on in full the average variable home loan rate would be 3.87% down from 4.06% last month<\/p>\n<\/li>\n The average monthly saving could be $57 on a $400,000 loan for an owner occupier paying principal and interest, on top of the $58 monthly saving in June<\/p>\n<\/li>\n Last month 47 lenders passed on the RBA rate cut in full, 32 passed on part of the cut and 7 are yet to move<\/p>\n<\/li>\n<\/ul>\n 2 July 2019: RBA makes first consecutive rate cut since 2012 as Mozo.com.au<\/a> finds the Big 4 banks\u2019 tactic of holding back some of the RBA official rate cuts has seen them pocket $125 million per month resulting in a staggering $3.86 billion windfall since 2016.<\/p>\n With the second official 25 basis point cut in a month, our biggest lenders will be weighing up their reputations for putting their customers last against their desire to ruthlessly profiteer on the back of the RBA decision.<\/p>\n \u201cToday\u2019s move by the central bank will once again see the Big 4 under pressure to pass on the rate cut in full but, unlike last month, they\u2019re likely to hold back more of the interest rate relief and fire up the money presses,\u201d says Mozo Director Kirsty Lamont.<\/p>\n \u201cWhen you consider that last month ANZ and Westpac pocketed a $193 million annual windfall by holding back some of the official rate cut, it\u2019s hard to see the other big banks staring this gift horse in the mouth again.<\/p>\n \u201cAs well as holding back a portion of the official cut, the big banks all delayed the effective dates of their rate relief. A move that saw them collectively bank $108 million.<\/p>\n Last month we saw 47 lenders pass on the RBA rate cut in full, 32 pass on part of the cut and 7 yet to move significantly.<\/p>\n If the banks were to pass on today\u2019s official interest rate cut in full, average variable home loan rates will be at their lowest level in history and owner occupiers could be $57 a month better off, on top of the $58 last month.<\/p>\n At the current average variable home loan rate of 4.12%, the monthly repayment for owner occupiers paying principal and interest is $1,937. If lenders pass the cut on in full, the new average variable rate will be just 3.87% and monthly repayments would drop to $1,880.<\/p>\n When it comes to some of the best variable home loan rates on the market, Mozo found smaller lenders are on top with Reduce Home Loans offering 3.09%, Well Home Loans offering 3.22% and Homestar offering 3.24%.<\/p>\n Mozo will be tracking the banks variable rates, stay up to date here: https:\/\/mozo.com.au\/reserve- About Mozo.com.au<\/a><\/p>\n Mozo compares more than 1,800 products from over 200 banking, insurance and energy providers to help thousands of Australians find a better deal each month via its award-winning comparison tools and calculators. Mozo\u2019s team of experts routinely provides financial commentary and advice for major news outlets in Australia.<\/p>\n Leading Variable Interest Rates<\/p>\n<\/td>\n<\/tr>\n Lender<\/p>\n<\/td>\n Home Loan<\/p>\n<\/td>\n Interest rate<\/p>\n<\/td>\n<\/tr>\n Reduce Home Loans<\/p>\n<\/td>\n Low Rider Home Loan<\/p>\n<\/td>\n 3.09%<\/p>\n<\/td>\n<\/tr>\n Well Home Loans<\/p>\n<\/td>\n Well Balanced<\/p>\n<\/td>\n 3.22%<\/p>\n<\/td>\n<\/tr>\n Homestar<\/p>\n<\/td>\n Star Essentials<\/p>\n<\/td>\n 3.24%<\/p>\n<\/td>\n<\/tr>\n Tic:Toc<\/p>\n<\/td>\n Variable Home Loan<\/p>\n<\/td>\n 3.27%<\/p>\n<\/td>\n<\/tr>\n Smart Home Loan<\/p>\n<\/td>\n 3.28%<\/p>\n<\/td>\n<\/tr>\n\n
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