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Newcastle Permanent cuts 3-year fixed rates

by Hannah Dowling8 minute read
Newcastle Permanent cuts 3-year fixed rates

Newcastle Permanent has announced fixed rate cuts of up to 21 bps for investors, and 10 bps for owner-occupiers, effective as of 9 March 2020.

The cuts are applicable to both new owner-occupier and investment borrowers, and have only been applied to three-year fixed term rates.

Additionally, the rate cuts are applicable for borrowers paying either principal and interest (P&I) and interest-only (IO) repayments.

The three-year fixed rate product changes are as follows:

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  • Premium Plus Package (P&I) - cut by 10 bps to 2.79 per cent
  • Premium Plus Package (IO) - cut by 10 bps to 3.29 per cent
  • Standard Fixed (P&I) - cut by 10 bps to 2.89 per cent
  • Standard Fixed (IO) - cut by 10 bps to 3.39 per cent

The three-year fixed rate product changes for investors are as follows:

  • Premium Plus Package Investment (P&I and IO) - both cut by 21 bps to 3.08 per cent
  • Fixed Interest Rate Investment (P&I and IO) - both cut by 21 bps to 3.18 per cent

All other fixed rate term periods remain the same.

This comes following the move from the Reserve Bank of Australia (RBA) to lower the official cash rate by 25 basis points, to a historic low of 0.5 per cent.

In response, earlier this month, Newcastle Permanent announced that it had passed on the full 25 basis point reduction to all standard variable home loan customers.

[Related: Newcastle Permanent raises rates on OO IO loans]

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