Four lenders have announced cuts to their variable mortgage rates, with two also lowering their fixed rates.
Bank of Sydney has reduced the variable rate for new owner-occupier customers on its Expect More Home Loan by 27 basis points to 3.88 per cent, while the bank’s three-year fixed rate for owner-occupiers has been reduced by 10 basis points to 3.88 per cent.
Effective immediately for new loans and on 25 May for existing loans, Yellow Brick Road (YBR) is passing on the full 25-basis-point cut from the Reserve Bank on its Empower owner-occupier product range and its Rate Smasher Home Loan.
The changes mean the variable rate for YBR’s Rate Smasher Home Loan will start at 3.82 per cent with a 3.82 per cent comparison rate – the lowest variable comparison rate the group has ever offered – while YBR’s Empower Home Loan will start at 4.00 per cent (with a 4.00 per cent comparison rate).
Meanwhile, Bendigo Bank will reduce its variable rate for owner-occupiers by 20 basis points to 5.48 per cent. The regional lender will also reduce its variable rate for investors by 15 basis points to 5.76 per cent.
Bendigo Bank said these pricing adjustments will be made effective on 30 May for new and existing loans.
Effective on 16 May, ME has lowered the standard variable rate for its home loan products by five basis points, with the bank’s Flexible Home Loan to start at 5.03 per cent (with a 5.05 per cent comparison rate).
ME has also reduced its three-year fixed home loan rates for owner-occupiers and investors by 25 points and 20 points respectively, with the owner-occupier rate to start at 4.04 per cent (with a 4.82 per cent comparison rate), and the investor rate to start at 4.09 per cent (with a 5.20 per cent comparison rate).
[Related: AMP makes rate changes]