Research reveals non-major lenders with better deals than big four

Not all banks are created equal when it comes to savings. Picture: Glenn Campbell

What a week it was. The rate cut finally happened, signalling the end of the hiking cycle and opening the door to what is hopefully, a series of cuts.

Borrowers who were hanging on for dear life at the edge of the mortgage cliff can now begin to slowly crawl back to safety.

Prime Ministers can dare to dream of a second term.

MORE:Insane mansion with $470k sneaker vault

But if you celebrated too hard on February 18, there’s a pretty good chance you have blown your savings already.

Borrowers with an average Australian mortgage, around $641,000, stand so save only around $100 a month.

It’s a good start, but if you ask Aussie families, it’s not nearly enough. Think about what costs $100 these days … an extra tank of petrol a month?

Research by Finder revealed more than 50 per cent of borrowers believed they needed to save at least $500 a month to feel financially secure. And 14 per cent said they needed to save $1000.

RELATED:Banks who haven’t passed on cuts yet exposed

There’s a long way to go, but at least the banks did the right thing and quickly announced they would pass on the rate cut in full to their borrowers.

But wait, take a closer look and it turns out not all banks have passed it on.

In fact, more haven’t than have.

Further analysis by Finder revealed close to two thirds of the banks they monitor were yet to make a move at the time of writing this article.

Be like Reserve Bank Governor Michele Bullock and hand down some rate cuts of your own. Picture: David Gray

The big four holds about 72 per cent of the home loan market, but there are more than 100 other lenders out there. All up, 45 have passed on the rate cuts, while 63 haven’t.

So, check with your bank to see whether you are getting a rate cut. And if you’re not, it’s time to take action.

I don’t mean grab your pitchfork and flaming torch and pile into a ute with your angry neighbours.

MORE:Winners and surprise losers of rate cut

Rather, get online and see what better deals are out there.

A look at the 45 lenders who have passed on the cuts reveals there are home loan repayment rates as low as 5.44 per cent out there. That’s nearly two rate cuts lower than ANZ’s 5.84 per cent, which is the lowest of the big four.

A good bit of shopping around and you can be the governor of your own reserve bank, ordering rate cut after rate cut for yourself, without a pesky board to get in your way.

Looking at the new lowest standard variable rates of the big four banks, ANZ will lead the way as of 28 February, with 5.84 per cent. CBA will be the next lowest at 5.90 per cent, while NAB and Westpac will both land on 6.19 per cent- though it will take an extra four days to get there.

Happy homebuyers will be even happier if they double their rate cut.

There are currently two lenders with a variable rate offering at least one rate cut (0.25 per cent) below the best of the big four.

Australian Mutual Bank leads the way with 5.44 per cent. Then there is Suncorp with 5.57 per cent.

The Mutual is not far behind with 5.64 per cent, followed by G & C Mutual Bank on 5.70 per cent. Then it’s Unloan, Unibank, Teachers Mutual Bank, Newcastle Permanent, Hume Bank, Homestar, loans.com.au, HSBC, Greater Bank, Firefighters Mutual Bank, BankVic and Auswide Bank, all on 5.74 per cent.

That figure is more than a whole rate cut below 6.03 per cent, which is the average of the big four.

Switching to one of these lenders, you could be saving another $40 to $200 a month on top of the rate cut already handed down.