Two new lenders have announced they will cut variable rates by 25 basis points, following the RBA’s decision to slash the official cash rate.
Earlier this month, the Reserve Bank of Australia cut the official cash rate by 25 basis points to a record-low of 0.5 per cent.
The decision made this the fourth cut to the cash rate in less than 12 months.
Following the RBA’s decision, various lenders have announced that they have slashed their rates, with non-bank lender Firstmac and mutual bank Australian Unity Bank the latest lenders to do so.
Firstmac has announced that it will cut rates for all new variable home loans on principal and interest payment terms by 25 basis points, and all interest-only variable loans by 10 basis points.
Further, all current Firstmac customers with a variable-rate home loan will have their rate cut by 25 basis points.
The reduction for new customers is applicable effective immediately, however existing customers will have their new rates applied as of 26 March 2020, with repayments automatically adjusted to reflect their new rate.
Existing customers will be advised of these changes via their Firstmac Money account.
According to Firstmac, the Basic 80 Owner Occupied home loan, on principal and interest repayment terms, now starts at 2.74 per cent per annum.
Australian Unity Bank also announced that it would pass on the full 25 basis point cut for its variable home loan customers, effective as of 24 March 2020.
[Related: Newcastle Permanent cuts 3-year fixed rates]