Powered by momentummedia
nestegg logo
Powered by momentummedia
Powered by momentummedia
nestegg logo
nestegg logo

 

 

Borrow

More non-majors reduce mortgage rates

  • October 04 2019
  • Share

Borrow

More non-majors reduce mortgage rates

By Cameron Micallef
October 04 2019

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

More non-majors reduce mortgage rates

author image
  • October 04 2019
  • Share

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

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.

Advertisement
Advertisement

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.

More non-majors reduce mortgage rates
More non-majors reduce mortgage rates
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.