Borrowers should be looking to get a home loan deal with an interest rate in the three per cent range.

Exclusive data compiled by financial comparison website RateCity found Australians have wasted an estimated $48 billion collectively during this period by being loyal to the nation’s largest lenders.

Analysis shows on a $300,000 30-year home loan the average standard variable rate of the big four banks today is 5.38 per cent, and is much higher the average standard variable rate of the entire home loan market at 4.67 per cent.

The calculations of money wasted is based on the major banks’ discounted variable rates over the past decade compared to the lowest rates on the market during the same time frame.

Complacency on home loan can costs borrowers thousands of dollars over the life of their loan.Source:Supplied

The Reserve Bank of Australia board meets again tomorrow (TUES) and they are strongly tipped to keep the cash rate on hold at a record low of 1.75 per cent.

But RateCity spokeswoman Sally Tindall warned borrowers to not to just stick with what they know and to go on the hunt for a fiercer interest rate.

“Traditionally Australians haven’t been big switchers but when they do they are seeing savings of thousands and thousands of dollars,’’ she said.

“It is not difficult to not find an interest rate in the 3s and it’s not difficult to find a rate in the 5s, the variation is huge.

“People need to start concentrating on the interest rate and how much that’s going to mean to their bottom line when they’re taking out a loan.”

Ms Tindall said all customers needed to do some home loan interest rate research and then phone up their lender to get a better deal before refinancing.

Mortgage Choice spokeswoman Jessica Darnbrough said it’s vital borrowers “don’t take a set and forget attitude towards their home loan.”

Mortgage Choice spokeswoman Jessica Darnbrough said borrowers should review their home loan annually.Source:Supplied

“Borrowers should look to review their home loan once every 12 months to make sure they are still in the right product for their needs,’’ she said.

“Rates move quickly and frequently so it is important for borrowers to keep an eye on the market to make sure they aren’t missing out on a great home loan deal and therefore missing out on the chance to save money.”

AMP chief economist Dr Shane Oliver said he expects the RBA to keep the cash rate on hold tomorrow but to cut again in August and November.

sophie.elsworth@news.com.au

BIG FOUR BANKS

Standard variable rates on a $300,000 30-year home loan

ANZ 5.37%

CBA 5.35%

NAB 5.35%

Westpac 5.43%

Average of big four: 5.38 per cent

Average SVR of the home loan market: 4.67 per cent

Average three-year fixed loan rate: 4.37 per cent

Source: RateCity