Lenders are dragging their feet when it comes to passing on last week's cash rate cut, with the big four banks alone set to pocket $21 million from the delay.
Almost half the the home loan market has yet to announce interest rate cuts following the Reserve Bank's reduction of the official rate to a new record low of 1.75 per cent, according to comparison website finder.com.au.
Some 49 per cent of lenders have left borrowers in the dark about whether they'll change their variable rate for owner-occupier loans.
And while some have yet to make any noise a full week after the RBA slashed rates by 0.25 per cent, others are boosting profit by withholding some of the cut or delaying making the change.
The big four banks will earn a combined extra $21 million in the coming weeks as they delay rolling out the changes, Finder research shows.
That means they'll squeeze an estimated $1.25 million from mortgage customers each day they hold off cutting rates, Finder money expert Bessie Hassan says.
"Borrowers are not getting the full savings, they have to wait before they can benefit from that rate cut" she said.
One lender, Australian Military Bank, will wait eight weeks to honour the rate cut, while another, ME Bank, has announced a rate cut of just 0.05 per cent.
National Australia Bank was the first cab off the rank, announcing it would cut its standard variable home loan by the full 0.25 percentage points within minutes of the RBA's move.
But that won't come into effect until next Monday, earning NAB $3 million in repayments, Finder said.
Westpac and the Commonwealth Bank were also quick to follow the RBA's lead and declare a full rate cut, but they'll each earn around $8 million before borrowers see any relief.
Westpac is the tardiest of the major lenders, waiting 20 days to pass on the cut, while CBA is close behind, waiting 17 days.
ANZ will be the fastest to make a change, but will only reduce its standard variable home loan rate by 19 basis points, rather than the full 25.
It will rake in an extra $2 million as a result.
Economists are flagging another cash rate cut for August after the central bank dialled down inflation forecasts.
But some believe the big banks, which made a combined $30 billion cash profit in 2015, may not take such swift action again if a second rate cut comes after a Coalition election win.
Labor has promised a Royal Commission into the industry if it wins the July 2 federal election.
"Banks in Australia are performing solidly and with another rate cut on the cards it would be disappointing if it's not passed on in full to their customers," Ms Hassan said.
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