OCR

 

PHOTO: OCR cut. Getty

All the major banks have dropped their interest rates in the wake of the Reserve Bank’s latest cut to the official cash rate (OCR).

The OCR dropped to a record-low 1.5 percent on Wednesday – bad news for savers, but music to the ears of homeowners still paying off their mortgages.

Assuming you’re a homeowner, how much will the latest cuts save you? It depends on what bank you’re with, what kind of mortgage you have and how much there is left to pay.

First-home buyer

According to the Reserve Bank’s latest figures, the average loan taken out by a first-home buyer with a deposit under 20 percent is $441,576.

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