One Australian bank has outdone the big four by passing on the Reserve Bank's full rate cut, slashing its variable rate to a historic low.
Bank of Sydney was quick off the mark reducing its new borrower owner occupier variable rate by 25 basis points.
“This means that the current ‘Broker Special’ variable rate is down to an historic low of 3.54 per cent,” Bank of Sydney head of third-party distribution, Steve Sampson said.
“Providing that the LVR doesn’t exceed 80 per cent, borrowers are in PAYG employment and the property is located in metro postcodes, this loan is available for both purchase and refinance. This has been a total reduction of 34 bps in the last month.”
For owner occupied borrowers that don’t meet the Broker Special criteria the Expect More Home Loan rate has been reduced to 3.63 per cent. A 100 per cent offset account and an annual fee free credit card that provides ‘cash back’ for purchases is part of the package.
"We are determined to provide our customers and broker partners with a competitive range of products and expand our reach further into the broker network," Mr Sampson concluded.
[Related: Third major bank cuts rates]