Gateway has cut rates across all of its variable owner-occupied and investment home loans, which will apply to both new and existing customers.
Off the back of the Reserve Bank of Australia’s (RBA) decision to cut the official cash rate to a new record low of 1.25 per cent, Gateway Bank has announced that it will pass on the full reduction to its mortgage customers.
The lender will reduce variable rates across all of its home loan products, with the changes set to apply to both new and existing customers from Tuesday, 25 June.
Gateway’s standard variable rates for owner-occupiers paying principal and interest will now start from 3.39 per cent (3.41 per cent comparison rate), while standard variable rates for investors paying principal and interest will start from 3.67 per cent (3.69 per cent comparison rate).
The lender also noted that the changes will be automatically applied to home loan applications in the pipeline.
Gateway is the latest credit provider to announce mortgage rate cuts, with several lenders, including the big four banks, slashing their rates following the RBA’s monetary policy adjustment.
The RBA’s decision has prompted some lenders to drop rates to as low as 2.99 per cent – as offered by Greater Bank and UBank on their one-year owner-occupied fixed rates.
Non-bank lender Reduce Home loans has also announced the introduction of an owner-occupied variable home loan offering with an interest rate of 3.09 per cent, targeted at borrowers with 40 per cent deposit.
Mortgage House, which recently funded the launch of an owner-occupied variable home loan with an interest rate of 3.29 per cent through uno Home Loans, has also dropped its rate to 3.15 per cent in response to the RBA’s announcement.
[Related: TMB drops variable mortgage rates]