Will banks pass on the savings to you?

Tuesday October 7, 2008

With another interest cut expected, within the week, many people are wondering if Australian banks will be passing on the lowered interest rates to variable rate loan holders. If the lowered rates are passed on, then Australians may end up with billions in annual savings.

Rumours abound that banks will lower their interest rates - but not by the full amount. This means that Australians will get some savings, but not the full amount they could. There have been claims that banks are already making high profits and could easily pass on the savings while still being well capitalised.

With more Australians borrowing more money from banks, Federal Treasurer Wayne Swan has commented that if the global markets stabilise over time, there would be no reason for the banks to lower funding costs.

But if you don't want to rely on the banks, or can't afford to wait, it is still possible to find a personal loan that suits you.

You will need to do your research and approach a number of banks and credit unions to find out which offers and loans will suit you.

Many banks have personal loans offering fixed and variable interest rates, just as home loans do. It all depends on what you feel will suit you best.

If you want to apply for personal loans or a car loans, many banks offer online applications that can give you responses within 24 hours.

Many banks can offer you pre-approval before you go looking for your major purchase. This will give you an idea of your borrowing power and allow you to establish what price range you should be looking for.

Compare personal loans and find the right one for you. Use our personal loans calculator for more help.

If you're interested in home loans, take a look at our home loan comparison page and our home loan calculators.

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