Both lenders have announced cuts to variable interest rates by 15 basis points, short of the full 25 basis point cut by the RBA.
At the beginning of this month, the Reserve Bank of Australia cut the official cash rate to a record low of 0.75 per cent.
In light of this decision, lenders have revised their variable home loan rates; however, most have failed to pass on the full 25 basis point cut.
Non-bank lender Resimac is the latest lender to announce changes.
From 23 October 2019, variable rates across Resimac Prime and Specialist home loan product ranges will reduce by 15 basis points, for both new and existing customers.
Rates for new customers on the Resimac Prime Flex home loan product start from 3.06 per cent p.a. (comparison rate 3.41 per cent).
Citibank has also announced rate cuts of 15 basis points to all residential variable home loan products, excluding lines of credit facilities, effective from 21 October 2019.
The announcements comes after all four major banks also failed to pass on the full 25 basis point reduction to customers, which sparked criticism from Commonwealth Treasurer Josh Frydenburg.
“The banks have a lot of explaining to do,” Mr Frydenberg said.
“This is very disappointing by the banks, and customers should vote with their feet.”
The Treasurer encouraged borrowers to consider switching to alternative lenders with lower mortgage rates.
“Now, some of the smaller lenders have actually passed on this rate cut in [full],” he said.
“People should shop around, get the best deal, but also make their displeasure known to their banks because the rate cuts should be passed on in full, and that would be a good thing for consumers."
Hannah Dowling is a journalist for The Adviser and Mortgage Business.
Prior to joining Momentum Media, Hannah worked as a content producer for a podcast catering to property investors. She also spent six years working in the real estate sector at a local agency.
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