At least 16 third-party lenders have reacted to the Reserve Bank’s cash rate decision last week by cutting their home loan rates.
Teachers Mutual Bank announced it will reduce the rate for all of its variable home loans by 0.25 per cent, with its standard variable rate loan reduced to 5.48 per cent per annum.
CUA and Bendigo Bank confirmed it will pass on the full 0.25 per cent rate cut for its variable home loans, with their standard variable loans reduced to 5.15 per cent and 5.76 per cent respectively.
Aussie Home Loans announced it will not only pass on the Reserve Bank’s 25-basis-point cut in full, but will also cut its fixed-rate home loans by up to 0.45 per cent.
Aussie’s Select Basic Variable Rate will be starting from 4.39 per cent for all new loans – the product’s lowest variable rate ever.
Aussie chief executive John Symond said the Reserve Bank’s decision to lower the cash rate will undoubtedly create more competition and lead to further falls in home loan rates.
“In my 23 years of business with Aussie, I have never seen a stronger borrower’s market,” he said.
“Interest rates are at historic lows, lenders are fighting for home loan market share and now is the time for all property owners, whether owner-occupiers or investors, to make sure they have a really good rate.”
The Adviser reported last week that Commonwealth Bank, Westpac, National Australia Bank, ANZ, Bank of Queensland, Bank of Melbourne, Heritage Bank, ME Bank, ING Direct, Suncorp Bank, Citibank, AMP, Yellow Brick Road, Australian First Mortgage, Newcastle Permanent and Maitland Mutual Building Society all made cuts to their home loan rates.