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More non-majors reduce mortgage rates
A number of major bank subsidiaries have announced reductions to their variable home loans following Tuesday’s official cash rate cut.
More non-majors reduce mortgage rates
A number of major bank subsidiaries have announced reductions to their variable home loans following Tuesday’s official cash rate cut.
ME Bank, BankWest and UBank are the latest lenders to follow the lead of their parent companies, reducing variable home loan options by 15 to 25 bps.
ME Bank
ME has announced that it will cut variable rates across its mortgage products by 15 bps, short of the full 25 bps reduction.
The changes will apply to both new and existing customers and will take effect from 24 October.
ME revealed that its online savings account interest rate (base and bonus rate) will also be cut by 15 bps, effective 8 October.
“In setting rates, ME has sought to strike a balance between depositors and home loan borrowers, as well as ensuring the pricing of products remains sustainable given the record-low interest rate environment,” the bank noted in a statement.
Bankwest
Meanwhile, Commonwealth Bank’s subsidiary Bankwest has announced that it will reduce variable home loan rates by between 13 and 25 bps, which will mirror the changes made by its parent company.
Bankwest’s rate changes will come into effect on Wednesday, 16 October.
The non-major’s standard variable rates will start from 5 per cent for owner-occupiers and 5.65 per cent for investors.
UBank
NAB subsidiary UBank has also reduced its variable mortgage rates.
Unlike its parent company, UBank has passed on the full 25 bps cut, with its changes to apply to all new and existing customers from 29 October 2019.
From 29 October, UBank’s mortgages rates will start from 3.42 per cent.
ME, Bankwest and UBank’s mortgage rate cuts follow cuts from all of the big four banks and non-bank lenders Athena Home Loans, Homestar Finance and Reduce Home Loans.
The most recent reductions follow treasurer Josh Frydenberg’s condemnation of the major banks for not passing on the full rate cut.
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