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AMP cuts variable rates by more than 30 basis points

by James Mitchell5 minute read

AMP Bank has reduced interest rates across its variable and fixed-rate home loans for new customers.

The rate reductions apply to the lender's owner-occupied mortgages, including the AMP Essential Home Loan, which will be reduced to 4.09 per cent per annum from 4.20 per cent.

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The bank's basic variable rate will be reduced to 4.19 per cent per annum from 4.50 per cent.

In addition, the basic two-year fixed-rate loan will be reduced to 4.18 per cent from 4.55 per cent.

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AMP said the changes to the basic variable and fixed-rate loans provide an attractive option for customers who may wish to split their loan and pay a portion fixed and a portion variable.

"The rate changes are in line with AMP Bank’s commitment to help more Australians own their own homes," the bank said. 

The changes are effective from Sunday 30 August for fixed rates and Monday 31 August for variable rates and are available for new loan applications.

The rate reductions follows recent price changes from ME and Bendigo Bank.

Last week, Bendigo Bank announced it will increase its residential investment standard variable interest rate by 20 basis points, while the bank's residential investment package variable rate will also increase by 20 basis points for new business and most existing investor variable rate loans.

Meanwhile, ME will increase its Basic Variable home loan interest rate for new investor borrowers by 40 basis points to 4.69 per cent and its Flexible home loan, with a member package interest rate, for new investor-borrowers will increase by 0.36 per cent to 4.89 per cent, effective 15 September. 

Rates across existing investor loans will also rise by 0.41 per cent.

ME also announced that its fixed rates for new owner-occupier borrowers will fall between 0.09 per cent and 0.50 per cent across three- to seven-year terms, with its three-year fixed rate falling 0.09 per cent to 4.19 per cent.

 

AMP cuts variable rates by more than 30 basis points
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James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

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