HOME loan customers are being urged to check their interest rates for fear they could be getting ripped off.
The Reserve Bank of Australia kept the cash rate unchanged again today at two per cent — where it has remained since May — leaving interest rates at historically lowlevels.
This has allowed customers to shave down their debts quicker than ever before as the cost of borrowing remains cheap.
But Home Loan Experts director Otto Dargan has warned borrowers not to be complacent as many lenders have continued to charge customers too much on their loans.
“In the last year the banks have pulled off the heist of the century,’’ he said.
“They’ve baited homeowners with a low rate then switched them to a high one by partially passing on RBA rate changes.
“People need to check their interest rate, what’s on offer now is much lower.”
Latest data from financial comparison site InfoChoice shows lenders are offering customers both variable rate and three-year fixed rate deals below the four per cent mark.
Their database shows the lowest standard variable rate loan deal on offer is by lender SCU for loans between $250,000 and $499,999 with a variable rate of 3.79 per cent.
On a three-year fixed rate loan lender Catalyst Money is offered the lowest deal with a rate of 3.89 per cent.
The site’s spokeswoman Laura Crowden says lenders are fighting hard to attract new customers resulting in them rolling out enticing deals for customers.
“There are currently both fixed and variable loans available with interest rates under four per cent,’’ she said.
It pays to compare as switching to a lower rate could end up saving you thousands over the lifetime of your loan.”