The average discount to the standard variable rate that owner occupiers are paying on their mortgages is currently 120 basis points and new borrowers are receiving a further discount of around 30 bps.According to Reserve Bank analysis in the latest Statement on Monetary Policy, banks have on average passed through 60 bps of the 75 bps reduction in the cash rate this year. New variable rate loans are typically offered at lower interest rates than outstanding variable rate loans, even for borrowers with similar characteristics."On average, for owner occupiers with variable rate loans, interest rates on new loans are currently around 30 bps below those of existing loans," the RBA said.Similar discounts for new loans are evident for other loan types, such as investor and interest-only loans."Households obtaining new loans, financing existing loans or negotiating a better deal with the existing lender tend to receive lower rates that existing borrowers who do not alter their original loan arrangements. This reflects strong competition among lenders for high-quality borrowers," the RBA said.Another factor leading to borrowers paying lower rates is that they are continuing to switch from interest-only to principal and interest loans, which have lower rates. Over the past two years, the interest-only share of the stock of loans has declined from around 40 per cent to 20 per cent.