A number of Australian lenders have reduced their rates after the Reserve Bank lowered the official cash rate to a new record low this week.
Liberty Financial cut its prime rates to 4.14 per cent – with a comparison rate of 4.21 per cent – as the group looks to position itself as an alternative to the majors.
John Mohnacheff, Liberty’s national sales manager, said the non-bank saw a 29 per cent increase in applications after its last round of rate cuts.
“It’s clear that brokers are seeking out better pricing and service and choosing Liberty as their preferred lender to deliver on this,” he said.
Liberty also confirmed it will pass on the RBA’s full 25-basis-point rate cut to its commercial and SuperCredit products.
Meanwhile, Bank of Melbourne announced a reduction in its standard variable home loan rate from 5.65 per cent to 5.45 per cent, effective from 18 May.
Bank of Melbourne CEO Scott Tanner said Victorians have a choice of home loan offers at Bank of Melbourne to cater for their individual circumstances or lifestyle needs.
“With competitive interest rates and a range of home loan deals on offer, now is a great time for Victorians to come and visit Bank of Melbourne,” he said.
White-label funder Advantedge Financial Services has also announced a 20-basis-point reduction to its variable rates on PLAN Lending, ChoiceLend and FASTLend products to further strengthen its strong market position on price.
The reduction will see Advantedge’s lowest available variable rate fall to 4.28 per cent, effective 15 May.
Advantedge also announced an additional 15-basis-point reduction for new full-doc owner-occupier variable rate term loans with an LVR of 80 per cent or less. The discounted rates will be available until 31 July, with discounted rates starting from just 4.13 per cent.
Brett Halliwell, general manager of Advantedge Distribution, said the group’s special offer is intended to provide owner-occupiers with additional price benefits.
“We remain committed to delivering highly competitive white-label products to our broker partners, and will continue to deliver market-leading products for the broker channel.”
[Related: Westpac reveals lowest rate in 50 years]