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Bank cuts variable rates again

by Staff Reporter6 minute read

One lender has announced a rate cut of 20 basis points less than two months after announcing a 25-point cut.

AMP Bank has temporarily reduced the discounted rate on its Professional Package home loans from 5 per cent to 4.8 per cent.

The offer is available for variable rate loans above $500,000 and requires a deposit of at least 20 per cent. It applies to new customers and will be available until August 31.

AMP announced a previous rate cut in April, when it reduced its Basic variable loans from 5.20 per cent to 4.95 per cent.

Chief operating officer Rob Slocombe said the latest discount makes AMP’s variable products among the most competitive in the market.

“Providing our customers with attractive home loan products to help them buy their own property is the most important thing we do,” he said.

A raft of banks have cut their fixed and variable rates in the first six months of 2014, with lenders telling The Adviser last month that they were feeling the pressure of competition.

[Related: AMP reports strong mortgage growth]

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