Ad­vice is to watch the rates

Mercury (Hobart) - Property - - Front Page - PAUL CLITHEROE

HOMEown­ers­may­have breathed a sigh of re­lief when the Re­serve Bank of Aus­tralia an­nounced its lat­est cut to of­fi­cial in­ter­est rates but keep a close eye on howyour lender re­sponds.

If you’re not get­ting a de­cent share of the re­cent rate cut, it could be time to find a bet­ter deal.

The RBA’s of­fi­cial cash rate of 3.25 per cent is nowat a three­year low.

How­ever de­spite a string of rate cuts in the past 12 months, many­bor­row­ers are still pay­ing more on their home loan than they were three years ago.

There’s a good chance­many lenders will keep at least part of the lat­est rate cut from their vari­able loan cus­tomers.

This has made it es­sen­tial to keep track of your home loan rate and com­pare it to what is avail­able else­where.

The cash rate maybe at its low­est level since Oc­to­ber 2009, but the same can’t be said about mort­gage rates.

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