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Major banks quick to cut rates

by Staff Reporter8 minute read
The Adviser

Most of the big banks have wasted no time in announcing rate reductions but not all have decided to hand back the full one per cent cut delivered by the RBA yesterday.

NAB and CBA revealed shortly after the RBA rate announcement that they would pass the 100 basis point reduction on, bringing their standard variable rates to an equal 6.74 per cent.

However Westpac said it would only pass on 80 basis points to its borrowers, leaving its standard variable home loan rate to 6.91 per cent – 17 basis points higher than its peers.

ANZ announced later in the day that it would pass on 83 basis points of the rate reduction leaving its standard variable rate on par with Westpac.

NAB executive director and chief executive Ahmed Fahour said “home loan rates at levels not seen since 2003 is certainly a great way to close out the year”.

A borrower with a $300,000 home loan now looks set to save a further $200 per month on home loan repayments as a result of the reduction.

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