More lenders follow suit with rate reductions

This cut delivers consumers a variable rate of 4.38 per cent per annum (with a comparison rate of 4.39 per cent per annum) on the Rate Smasher home loan and a variable rate of 4.64 per cent per annum (with a comparison rate of 4.65 per cent per annum) on the Empower Home Loan.

At 4.38 per cent per annum, the Rate Smasher Home Loan is the lowest variable rate Yellow Brick Road has ever offered.

“The banks are playing a distraction game with their rate announcements, focusing attention on who went first and minor differences between themselves, when in fact the real news is elsewhere,” Yellow Brick Road group executive chairman Mark Bouris said.

“When you compare the major banks’ variable rates with Yellow Brick Road is when you start to see just how big the rate spread can be,” he said.

“I urge consumers to look beyond the cuts and pay attention to where their rate fits in comparison to the rest of the market.”

Meanwhile, AMP Bank has also cut its variable rate home loans by 0.25 per cent.

The lender’s standard variable home loan interest rate will be reduced to 5.75 per cent per annum, while its Essential Home Loan product will be reduced to 4.49 per cent per annum.

Suncorp has also announced it will reduce its variable home loan interest rate by 0.25 per cent, with its standard variable home loan rate dropping to 5.74 per cent per annum.

Citibank has also made a cut of 0.25 per cent to its variable rate, which will reduce its standard variable rate to 5.94 per cent. The change will take effect on February 20.

[Related: Bank's ultra-low variable rate drives 380pc surge in volumes]