How mortgage rates have fallen and saved borrowers with a $500,000 home loan ...

Australian home mortgage rates have fallen during the coronavirus recession - typically saving borrowers more than $100 a month and could even fall again on Melbourne Cup day.

The Reserve Bank of Australia has, since March, cut interest rates from 0.75 per cent to a record-low of just 0.25 per cent, with two cuts in one month, which has seen borrowers with a $500,000 save more than $800.

Now interest rates are set to be cut again on Melbourne Cup day to a new record-low of 0.1 per cent at 2.30pm AEDT, just half an hour before the nation stops for a horse race.

Financial comparison website Finder surveyed 43 expects and 29 of them are expecting the RBA to cut rates by another 0.15 percentage points this afternoon.

Australian home mortgage rates have fallen during the coronavirus recession - typically saving borrowers with a $500,000 loan more than $100 a month and could even fall again on Melbourne Cup day

Australian home mortgage rates have fallen during the coronavirus recession - typically saving borrowers with a $500,000 loan more than $100 a month and could even fall again on Melbourne Cup day

Average standard variable rates have also fallen dramatically during the coronavirus recession.

Australia's cheapest home loans

Homestar: Star Gold Home Loan: 1.79 per cent

Reduce Home Loans: Rate Cutter Variable Rate: 1.89 per cent

Loans.com.au: Smart Booster Home Loan Intro one year; variable: 1.99 per cent

Community First Accelerator Home Loan Package - two-year Intro Rate Variable: 1.99 per cent

Pacific Mortgage Group Standard Variable Home Loan: 1.99 per cent - loan-to-value ratio of 60 per cent

 Source: Finder

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In March, they stood at 4.37 per cent but as of November 1, they had fallen to 3.99 per cent, a Finder analysis found.

This has seen monthly mortgage repayments for someone borrowing $500,000 fall from $2,495 to $2,385 - a saving of $110.

Over eight months, that would have added up to more than $800.

Australia's median house and apartment price stood at $638,264 in October which means a borrower with a 20 per cent deposit would typically have a mortgage of $500,000. 

Since June, 74 lenders have cut reduced their standard variable mortgage rates even though the Reserve Bank didn't cut the cash rate. 

Beginning in March, 94 lenders have cut their standard variable mortgage rates by an average of 0.35 percentage points while 72 lenders have slashed fixed rates by 0.67 percentage points, Canstar data showed.

Almost a dozen home lenders are even offering mortgage rates of less than two per cent, including Homestar which is offering a 1.79 per cent standard variable rate on its Gold Star Home Loan, making it Australia's cheapest home loan

Despite Australia being caught in a record economic slump, as a result of the COVID-19 shutdowns, the value of home lending in September rose by 5.9 per cent to be up

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