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Big Four, be warned, while the Reserve Bank held back on cuts today many Families are done with waiting. Editor smart investor magazine, Nicole Pedersen Mckinnon says smart mortgagees will be doing their research "What's not getting airplay is that the little guys are already offering rates some, 0.1% or 0.15% percentages below what they are. To put some numbers on that with a $300 000 mortgage that's a $58 000 saving!"

Nathan and Deborah Stride have saved thousands by switching their loan provider
"We hadn't really contemplated switching. We were happy where we were but when you now there's a better deal out there its worth investigating which is what we've done now. If we knew it was that easy to switch we would have done it sooner."

They've switched their home loan from ANZ to HOMESIDE. Their rate of 6.6% dropped to 6.2%. They're now saving $153 a month Its predicted their simple switch will end up saving them close to $47 000 over 30 years

The amount of money is offset a little bit by its two years saving on total loan period - so to be mortgage free 2 years sooner is just as much of an incentive. Deb wants to buy something. Its money in our pocket as opposed to going to the big banks and that's a win.

For the average home owner you can potentially save about 10% of the loan amount so for the average person that can be about $30 000 which is nothing to sneeze at.

Scott Pape is the Barefoot Investor giving independent advice to mums and dads about the best loans on the market without the kickbacks many mortgage brokers receive helping you switch

If you go and see a mortgage broker they get paid two ways - first is an upfront fee, upwards of $2000. They also get paid a trailing commission, a dirty kickback every month you stay in that loan - that can be $600 a year.

As part of his home loan fast start guide, Scott ran the rule over 1400 loans on the market, determining the 3 best home loans for families with a typical $400 000 mortgage over a 30 year period

Scott looked at 3 benchmarks when looking for best home loan:

  1. Unlimited extra repayments
  2. Redraw facility
  3. 100% offset accountÂ…

Of the three that we picked, HOMESIDE lending which is a division of NAB was sa stand out winner for us. Low rate, great flexibility

The second was SUNCORPS Money Manager Home Loan. A really attractive rate and really good features for the average home owner

The other one rate we looked at was BANKWEST - a division of CBA - it had a lot of really good features, a competitive rate and if you had a bit of equity they offered a bonus rate.

Real interest rate cuts are predicted in the coming months but many are warning short term relief may soon pale in the context of a bleaker, bigger picture

"The RBA said that hey rates are appropriate - let's leave them here and see what happens but it's by no means the end of this - rates could definitely fall more all depending on what happens in Europe." Said Pederson

I think we are likely to see more interest rate cuts but the sting in the tail is, if we do it means our economy is starting to go down the tubes and we want to safe guard against that.

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