Switching home loans could save $180 monthly but rate discounts are shrinking
Switching to rates near 6% saves $180 monthly, but only two lenders are offering them.
Mortgage holders looking for a better rate have a window right now. Switching from the average variable rate of 6.49% to a rate closer to 6% would save about $180 a month on a $600,000 loan with 25 years left to run.
Among the big four banks, Westpac offers the lowest rate at 6.24%. Experts warn the pickings are getting slim: only two lenders are expected to offer rates below 6% after the latest RBA hike.
The good news is you don't always have to switch. Call your own bank and mention you're thinking of leaving; many will negotiate if you push hard.
Get an offer from a rival lender first, or at least know what they're offering. Switching costs over $1,000 and takes more than a month, but the savings can offset that over time.
- 6.49%
- Average variable rate
- $180
- Monthly saving at 6%
- 2
- Lenders under 6%
- 6.24%
- Westpac lowest rate
Why it mattersFor homeowners, the difference between a 6.49% and 6% rate means real savings, but competition among lenders is tightening so you need to act and negotiate strategically.
AustraliaAustralian mortgage holders face a shrinking pool of discount options as the RBA holds rates at 15-year highs; refinancing remains worth exploring but requires research and negotiation.
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