If the RBA’s rate is 4.10% why are you paying 6%?
Announcement posted by Invigorate PR 21 Feb 2025
With the Reserve Bank of Australia's (RBA) cash rate at 4.10 percent, many Australians are wondering why their mortgage interest rates remain significantly higher. The answer is simple: banks are making substantial profits from you and countless others.
Despite some recent reductions, most variable home loan rates remain above six percent and for many customers, these rate cuts won't take effect until March. Banks justify this discrepancy by using the rate buffer to cover their operating costs and ensure record-breaking profits for shareholders.
"It is about time homeowners rise up and say enough is enough. The banks are only getting away with gouging because people let them," Julan Finch said.
"When are people going to say - enough is enough."
Finch is a leading money expert, mortgage broker and founder of Finch Financial, Julian Finch. With decades of experience in mortgage brokerage, Finch offers expert insights and advice to thousands of Aussies seeking to get their loan applications approved. His firm, Finch Financial, achieves some of the highest loan approval rates in the country and is known to secure loan approvals within a matter of minutes.
"How can you fight back? The answer is easy. Go and talk to a finance expert like a mortgage broker and they will get you a better deal," Finch said.
"If you're feeling squeezed by high-interest payments while banks rake in massive profits, don't just sit on your hands and cop it. Do something.
"If the RBA's rate is 4.10 percent and you are paying around six percent, someone is making a hell of a lot of money out of you."
Find a better lender
"Search for financial institutions with lower operating costs that offer more competitive rates," Finch said.
"Banks are making record profits. CBA just announced historic earnings, so don't hesitate to demand a better deal."
Talk to a broker
"A mortgage broker can help you negotiate with lenders and find the best interest rates available. As a broker I can source lenders and rates that most consumers are not aware of," Finch said.
"Many lenders only lend through brokers, so we have access to 'off-market' products that deliver superior terms and features compared to the bog standard run of the mill offerings being promoted by the big four banks."
Understand bank tactics
"Banks already profit from your cash, including funds in term deposits, which they leverage for lending," Finch said.
"Make them earn their money, just like you work hard to cover your monthly mortgage repayments. Banks should be working harder to keep your business rather than hitting you hard with high interest rates and wasting the money on junkets, stupidly high salaries and other corporate waste. And on top of this they are closing branches as well."
The bottom line
"Banks operate to maximise profits, but that doesn't mean you should accept an unfair deal. Take the initiative, talk to a broker, shop around, negotiate and demand better rates. Your financial future depends on it," Finch added.
About Finch Financial Services
Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.