RBA’s low cash rate lulls borrowers into a “false sense of security”


Although the RBA has announced that it will keep the spot rate at 0.10% and not increase until 2024, new research reveals that interest rates are starting to climb.

Aussie’s results – which is part of the Lendi Group – found that despite the cash rate remaining at 0.10% since November 2020, more than 1,000 mortgage rate changes have gone into effect.

There has recently been a surge in lenders raising their fixed rates, according to Aussie research.

It comes after recent findings revealed a “worrying” complacency among Australian mortgage holders to refinance, with 62% aware of its benefits but 54% having never refinanced before.

According to David Hyman, CEO of Lendi Group, remaining complacent, millions of people will likely lose their chance to “extend” their mortgage before interest rates rise again.

“It appears that a majority of Australian mortgage holders have acquired a false sense of security whenever the RBA’s cash rate is held steady – not realizing that lenders have no obligation to stay there. comply when they set their rates, ”Hyman said.

“The whole talk is that the cash rate doesn’t go up for a while, but the reality is that the stability of the cash rate doesn’t stop lenders from raising interest rates.”

Refinancing hits record high but concerns prevail

Although the Australian Bureau of Statistics (ABS) recently revealed that refinancing reached an all-time high of $ 17.2 billion, Mr Hyman said that only represented 7% of home loans refinanced over the course of the year. past year.

“This lack of action could cost Australians dearly across the board, when they finally realize that the low rates they once ignored are no longer on offer,” he said.

Mr Hyman said history has shown that interest rates don’t stay low forever and mortgage holders should prepare for them before they find out they have “missed the moment.”

“A home loan is not a short-term commitment – it’s a long-term investment,” Hyman said.

“If you are unsure of the process or the lack of time, speak to an expert who can compare your current rate to what is on offer, and ultimately help you secure your mortgage by capitalizing on favorable market rates at. the current time.”


Buying a home or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.


Rate type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval
Variable More details

Smart Booster real estate loan at variable discount rate – 2 years (LVR
  • Fast turnaround times, can meet a 30 day settlement
  • For purchase and refinancing, minimum deposit of 20%
  • No ongoing or monthly fees, add compensation for 0.10%

Variable More details

Nano Home Loans Variable Owner Busy, Principal and Interest (Refinancing Only)

  • WIN your interest-free home loan and save up to $ 1.1 million. Refinancing before October 29. The T & Cs apply.
  • Refinancing only. Quick online application, refinance in minutes, not weeks.
  • No Nano fees, 100% free cleared sub-account. Mobile app. Visa debit card and instant payments.
Variable More details

Owner Occupant Accelerate – Celebrate (LVR

  • For a chance to win $ 100,000 on your home loan, apply to Athena before October 31 and get approved by December 15
  • We reduce your rate based on the amount you have repaid on your loan
  • Automatic rate matching

Owner Occupant Accelerate – Celebrate (LVR
  • For a chance to win $ 100,000 for your home loan, apply to Athena before October 31 and get approved by December 15
  • We reduce your rate based on the amount you have repaid on your loan
  • Automatic rate matching

Variable More details

Garden mortgage (principal and interest) (special) (LVR
  • Unlimited additional refunds
  • Unlimited free withdrawals
  • Optional 100% compensation can be added for $ 120 per year ^

Variable More details

Low rate home loan – Premium (principal and interest) (owner occupied) (LVR
  • No upfront or ongoing costs
  • 100% clearing account
  • Additional refunds + reprint services

Image by Bruno Nascimento

The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes the retail products of at least the Big Four Banks, the Top 10 Customer-Owned Institutions and Australia’s largest non-banks:

Products from some vendors may not be available in all states. To be taken into account, the product and the price must be clearly published on the website of the supplier of the product.

In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

*Comparison rate is based on a loan of $ 150,000 over 25 years. Please note that the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as raffle fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.

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