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This is what your variable home loan looks like now

Couple standing in front of their new home. Source: Getty

The Reserve Bank of Australia announced yesterday it slashed rates by 25 basis points to a new record low of 1 per cent.

Following the cut, the big four banks each announced their respective cuts: ANZ was the only bank of the big four to pass on the entire cut, Westpac passed on a 0.20 per cent cut, while CBA and NAB each passed on a 0.19 per cent cut.

Now, Aussies are seeking to break their fixed rate loans in droves.

Finder’s insights manager, Graham Cooke, said the latest cut saw 408 per cent of Aussies seeking more info about fixed home loan break costs compared to this time last week.

Aussies are also searching for variable home loans to see what the new rates are, and where they can get better value.

Take a look at the new variable home loan rates here

The new variable home loan rates at all the big four banks. Source: Yahoo Finance

Now take a look at your monthly and annual savings on standard variable rate home loans after the RBA’s interest rate cut

The monthly and annual savings for borrowers with the new big four variable home loan rates. Results based off on the average mortgage size over 30 years. Source: Finder

With the new rates, ANZ offers its customers $59 of average savings, while CBA and NAB both offer $45 in savings per month.

Westpac’s new rates will see you saving $47 per month.

But while the big four may have reduced their rates, Finder’s Cooke still thinks some small-lenders are offering better rates.

In fact, there’s a 46 basis point difference between the lowest rate in the market and the lowest rate from the big four, which could save you a whopping $35,000 per year over a 30 year loan on the average mortgage.

“It’s time to shine for smaller lenders. In a post-Royal Commission market, some borrowers might well be open to breaking up with the Big Four,” Cooke said.

“Last month a couple of lenders broke the mould with sub-3 per cent fixed loans. This month we’re already seeing this extend in the variable home loan space with Reduce Home Loans leading the pack with a never-before-seen 2.89 per cent rate.”

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