On Tuesday, the Reserve Bank of Australia kept the cash rate at 0.25%, but experts urged borrowers to seek cheaper deals.
The latest analysis of financial services company Canstar surveyed 1,000 Australians and found that: The average interest rate paid by respondents for their own homes is 3.73%. The average investment loan interest rate paid by respondents was 4.06%. If the interest rate of a 30-year owner-occupier interest loan of A$300,000 is 3.73%, the customer will need to repay A$1386 per month, and will need to pay A$199,000 in interest during the loan period. But if they only need to pay an interest rate of 2.5%, the monthly payment will drop by A$201 to A$1185, and only need to pay A$127,000 in interest during the loan period, saving A$72,000.
Experts say that mortgage customers should definitely look for “interest rates below 3%.” However, given the income decline or unemployment of millions of Australians, not everyone can refinance right now.
