Bigpondnews.com Finance October 08, 2012
The big banks insist they can't afford to pass on the Reserve Bank's interest rate cut, but angry mortgage holders are increasingly likely to respond by switching lenders.
An Ernst and Young report has found 66 per cent of people think there are better deals available than their present loans.
However, if lenders want to take advantage of people's desire to switch, they must simplify what are currently complicated mortgage products.
Since the Reserve Bank cut the cash rate by 25 basis points to 3.25 per cent last Tuesday, the Westpac, Commonwealth Bank and National Australia Bank cut their variable home loan rates by less than that, citing high deposit costs.
ANZ will review its lending rates on Friday.
St George followed the lead of the major banks today, lowering its standard variable home loan rate by 17 basis points to 6.69 per cent (a $33.94 saving) from October 15.