Mortgage holders are missing out on potential savings when they don’t bargain for lower interest rates on home loans, according to new research.

 

A national survey by finder.com.au has found that by not requesting a better rate, 65% of Aussies pass up the opportunity to secure a discount on the size of their loan – while 82% of borrowers who request a better rate are successful.

 

Of the 2,033 survey participants, almost one-fifth (18%) revealed they had switched financial institutions to obtain a more desirable rate.

 

Even a modest rate cut can pocket new home-owners thousands in potential savings. For example, a 0.10% reduction (off the average standard variable rate of 4.93%) could shave almost $8,000 off the the average Australian home loan ($360,100).

 

Early in August the RBA reduced the official cash rate to a record low 1.50%. However, many financial institutions failed to pass on the full 25 basis point cut to customers.