Dozens of banks cut rates, but loyal borrowers won’t save a cent

The Reserve Bank Governor Michele Bullock is not expected to cut interest rates impacting mortgages for about a year according to various bank forecasts. A fierce mortgage war for new customers is breaking out, with dozens of lenders cutting rates – but experts warn everyday homeowners won’t save a single cent unless they do one thing. Australia’s fifth largest lender, Macquarie Bank, has joined a growing list of institutions trimming variable home loan rates for new borrowers, dropping its lowest advertised variable rate down to 6.04 per cent. However, because these out-of-cycle discounts are strictly reserved for new customers, Canstar experts warn existing borrowers will be left completely empty-handed – unless they pick up the phone to haggle or switch banks to become a new customer somewhere else. New housing is the biggest challenge facing Australia at the moment. Picture: Brendan Radke Macquarie’s 0.05 percentage point cut to its basic and offset account mortgages came as two more lenders, Greater Bank and The Capricornian, joined the push on Monday – bringing to 30 the total number of institutions trimming at least one variable rate since June 1. Canstar data insights direc...