EVERY dollar counts for Barry Burke and his family and so he was disappointed that the major banks didn't pass on the Reserve Bank of Australia's 50 basis point cut to interest rates last week.
"They make such big profits, so it makes it hard for the average person to understand why they don't pass on the cuts," Mr Burke, of Guildford, said.
"There needs to be greater regulation of the banking industry and more competition."
Mr Burke said while Parramatta and Holroyd residents may not be doing it as tough as people in other areas, mounting household costs were putting the pressure on.
"Everything is more expensive now and people need to be careful to make sure they don't over commit themselves when taking out a home loan," he said.
"We've already paid off one mortgage, but now we're about to start paying another one.
"I can say that the rates now are much lower than they were in the 1980s when I first started paying my mortgage, so that's one positive."
Last Tuesday the Reserve Bank gave mortgage holders some hope when they cut the official cash rate to 3.75 per cent.
If passed on, the rate cut would save customers with a $300,000 mortgage around $96 each month.
Last week the Commonwealth Bank moved to cut its interest rates on variable home loans by 0.40 per cent, taking its standard variable rate to 7.01 per cent, while the National Australia Bank lowered its variable home loan rate by 0.32 per cent to 6.99 per cent. ANZ decides on Friday. Market research company Roy Morgan said passing on the full rate cut to mortgage holders would eliminate 64,000 borrowers "at risk" of failing to repay their mortgages — from 18.2 per cent to 16.8 per cent.
Last week federal Treasurer Wayne Swan encouraged consumers unhappy with their bank's approach to the rate cut to "go down the road and get a better deal".
"Since the abolition of mortgage exit fees, hundreds of thousands of Australians have moved their financial institutions, more are contemplating it," Mr Swan said.
"People do have the capacity to go elsewhere if they're not happy."