The Reserve Bank of Australia recently made a 0.25 percent cut in February to the official cash rate. Now many borrowers are wondering which lenders are passing on these rate cuts.
On average, a rate cut of 0.25 percent saves borrowers approximately $60 per month or $750 per year on a $280,000 mortgage.
The Rate Cut Frenzy
Mortgage watch experts state that more than 16 third-party lenders have passed on the 0.25 percent rate cut to borrowers. These lenders include the following:
Teachers Mutual Bank – Reducing their home loan rates by 0.25 percent, this lender dropped their standard variable rate to 5.48 percent.
CUA and the Bendigo Bank – Dropped their variable home loan by 0.25 percent to 5.15 percent and their standard variable rate to 5.76 percent respectively.
Aussie Home Loans – Cut their variable rate home loan by 0.25 percent and cut their fixed rate home loan by 0.45 percent. Aussie’s basic variable rate now starts from 4.39 percent.
The Big Four Banks
The Commonwealth, the National Australia, Westpac and the ANZ banks have also made reductions to their home loan rates. These are as follows:
Commonwealth Bank – Reduced its standard variable rate by 0.25 percent to 5.65 percent. The lowest rate the bank has ever offered. The bank also reduced its 3-year and 5-year fixed-rate products by 0.25 and 0.30 percent respectively.
Westpac Bank – Cut its standard variable rate by 0.28 to 5.70 percent. However, Westpac Premiers Advantage Package holders get a minimum of 0.70 percent in a package discount, this means that they get a new rate of 5 percent.
National Australia Bank– Decreased its standard variable rate by 0.25 percent to 5.63 percent.
ANZ Bank – Reduced its variable rate by 0.25 percent to 5.63 percent.
Do you want to know how you can get a better home loan rate? Then contact eChoice and find the right home loan for YOU today.