• The place to find the right expertise and make better decisions
  • Find the right expertise

Blog

Switch lenders if rate cut is not passed on: RBA

Tim Russell | November 09, 2020

Mortgage holders and business operators are being encouraged by the RBA to switch lenders if their bank doesn’t pass on the latest cash rate cut.


The Reserve Bank of Australia (RBA) delivered mortgage holders and business operators a Melbourne Cup Day win by cutting the official cash rate by 15 basis points to a new record low of 0.10%.


Better yet, the RBA board says it’s “not expecting to increase the cash rate for at least three years”.


However, there are concerns that not all the banks will pass the rate cut on to borrowers across all of their products.


For example, within 24 hours of the RBA rate cut several of the big banks announced cuts to their fixed rates and business rates, but not their variable rates.


RBA Governor Philip Lowe says if the banks don’t lower their standard variable rates, “ask them for a better deal”.


“And if they don’t give it to you, switch to a bank that will,” Governor Lowe adds.


Federal Treasurer Josh Frydenberg is also urging lenders to pass on the RBA rate cut to reduce the cost of borrowing for households and small businesses.


“It’s my expectation that the banks will now look for ways to pass on those rate cuts. Pass it on to small businesses and pass it on to mortgage holders,” he says.


How we can help you play hardball


Now, here’s the important part.


It’s all well and good for our nation’s leaders to urge the banks to pass rate cuts on to you, but whether or not your lender will actually do so is another matter altogether.


The good news is, the power is with you – the borrower. And we can help you harness that power.


That’s because competition amongst lenders is fierce right now, so if your lender won’t budge, there’s a good chance another lender will.


We’re keeping a keen eye on which lenders are passing the rate cut on to their customers, and which lenders aren’t.


So if you’re keen to explore your options during this time of record-low interest rates, get in touch today.


We’d love to help you pay less interest on your mortgage each month.


Kind regards,


Tim Russell

About Me

Tim Russell

Current Rating: 4.92 / 5
Mortgage Broker
Multipart Finance
www.multipartfinance.com.au
North Sydney, New South Wales
0400530868
► Who is Multipart Finance?
▬▬▬▬▬▬▬▬▬▬▬▬▬▬
Put Simply, We assist those who want to grow their wealth through property investment.

When it comes to being a wealth creator, our experience is that those that do, like to push the boundaries. And when you push the boundaries, there is generally a finance hurdle that needs to be overcome.

Our offering specialises in identifying that hurdle and solving it for our clients in the quickest and most stress free way possible.

► How we help can help you
▬▬▬▬▬▬▬▬▬▬▬▬▬
In this tough regulatory environment, what we have seen is an emergence of smaller funders who can do things that the big 4 can't. Whilst we still deal with the major banks on a daily basis, we have also aligned ourselves with lenders who have a niche offering we know the majors can't solve.

Bottom line, we'll either get you the best finance solution or we'll tell you why now's not the right time and provide a game plan for you on what you need to do in order to achieve your goal.

► Want to know more?
▬▬▬▬▬▬▬▬▬▬
Call: ✆ (0400) 530 868
Email: ✉ tim@multipartfinance.com.au
Visit: ☛ https://multipartfinance.com.au