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Six lenders pass on full rate cut

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Francesca Krakue 4 minute read

Australia’s smaller banks have led the way with sharper pricing after six small lenders announced that they will pass on the RBA’s 25 basis point rate cut.

Following the RBA’s historic cash decision last Tuesday, Bank Australia, Bank of Sydney, Homestar Finance, Reduce Home Loans, P&N Bank and Virgin Money have all reduced their home loan rates by up to 25 basis points.

Australia’s mutual banks have been the most recent sector to come to the table.

Effective from 18 August 2016, Gateway Credit Union announced that it will reduce its home loan rates by 0.13 per cent.

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Hunter United will reduce its Platinum Loan interest rate by 0.16 per cent and its Basic Variable by 0.14 per cent from 1 September.

IMB has also come to the table, reducing its rates by 0.10 from the 24th of this month.

Credit Union Australia (CUA) and QBank have also decided to move on rates.

CUA has lowered its interest rates across its variable rate loans for owner occupiers and investors by 0.12 per cent per annum.

Effective from 18 August, the standard variable rates for owner occupiers will be 4.69 per cent and 5.10 per cent for investors.

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“The current economic environment, wholesale funding costs and record low interest rates are placing some pressure on margins, which has prompted this decision on interest rates,” CUA chief executive officer Rob Goudswaard commented.

Meanwhile, QBank has also announced that it will reduce its variable rate home loans by 0.15 per cent per annum, effective 19 August 2016.

According to CANSTAR, these are the banks that have lowered their rates so far:

Financial Institution

Reduction

Date

ANZ

0.12%

12 August

Bank Australia

0.25%

5 August

Bank of Melbourne

0.13%

23 August

Bank of Queensland

0.15%

31 August

BankSA

0.13%

23 August

Bankwest

0.10%

23 August

Bank of Sydney

0.25%

4 August

Bendigo Bank

0.10%

29 August

Commonwealth Bank

0.13%

19 August

CUA

0.12%

18 August

Gateway Credit Union

0.13%

18 August

Homestar Finance

0.25%

2 August

Hunter United

0.16% Platinum Loan

0.14% Basic Variable

1 September

IMB

0.10%

24 August

ING DIRECT

0.12% Orange Everyday

0.10% Other Variable

15 August

ME

0.10%

23 August

NAB

0.10%

19 August

Newcastle Permanent

0.10%

8 August

P&N Bank

0.10% - 0.26%

26 August

RAMS

0.10%

23 August

QBank

0.15%

19 August

Reduce Home Loans

0.25%

5 August

St. George Bank

0.14%

23 August

Suncorp Bank

0.10%

24 August

Virgin Money

0.25%

8 August

Westpac

0.14%

23 August

[Related: Challenger banks cut home loan rates]

Six lenders pass on full rate cut
rate cut  x
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