01.Get the best deal
CHOICE is reminding consumers to make sure they have the best deal on their home loan following the RBA's decision to cut the official cash rate.
The RBA cut the cash rate by 0.25 percentage points to 3.25 per cent at its October meeting, however the big banks have so far refused to pass on the full savings to consumers. The Commonwealth Bank and NAB cut rates by 0.20 percentage points while Westpac cut its rates by just 0.18 points.
CHOICE believes that recent excuses by the big banks about wholesale funding costs have served as as distraction to rising profitability.
“In many ways this is a phony price war, given that the big four between them still have 80% of the household mortgage market and want to keep it that way. While they make a show of responding to the RBA, in reality every decision is driven by a desire to minimise how much they pass on to consumers over time.", said CHOICE CEO Alan Kirkland.
"None of this is doing anything to eat into the banks' near-record profitability. The RBA Governor's statement this week makes it clear that the banks no longer have difficulty getting access to funds, and we believe complaints about the cost of funds don't hold water".
CHOICE is urging consumers to hold their banks to account if they fail to pass on the RBA's cut.
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