With an official rate cut expected, Macquarie Bank advises Australian homeowners and savers to engage with their banks by asking four key questions to ensure they are getting the best financial deal.
This year marks the first rate cutting cycle for the Reserve Bank of Australia (RBA) since 2020. The official cash rate has been reduced by 0.5% following RBA decisions in February and May. As further cuts loom, Macquarie Bank suggests Australians inquire about:
1. The timing of interest rate cuts on home loans.
2. Whether home loan repayments will be adjusted automatically.
3. The timing of savings account rate reductions relative to home loan rates.
4. Compliance with conditions for obtaining signed-up savings rates.
Ben Perham, Head of Personal Banking at Macquarie Bank, highlighted the need for a 'rate cut refresher' among Australians due to the long gap since the last rate cutting cycle: “It’s been a long time since a rate cutting cycle and many Australians with a mortgage or savings account may need a rate cut refresher."
Macquarie was noted as the fastest major bank to pass on May's full rate cut and adjusts minimum monthly repayments automatically for its customers. It also simplifies earning high ongoing interest rates on savings without fees or conditions.
Perham added: “It’s natural in a rate cutting environment to focus on how much you’ll save on your mortgage each month... We’ve done away with these conditions because we think they’re unfair and banking shouldn’t be hard work.”
The information provided is general in nature and not intended as specific advice.