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Non-majors announce rate cuts
A number of non-major lenders have announced that they will pass on the full RBA rate cut to all existing variable rate home loan borrowers.
Non-majors announce rate cuts
A number of non-major lenders have announced that they will pass on the full RBA rate cut to all existing variable rate home loan borrowers.
Industry superannuation fund-owned ME Bank has announced its decision to pass on the Reserve Bank of Australia’s (RBA) full official cash rate cut of 0.15 percentage point to all existing borrowers on a variable rate home loan.
The rate cut applies to the bank’s flexible home loan, flexible home loan with member package and basic home loan products, as well as standard home loan (settled after 1 October 1998), and ultimate offset account, effective 26 November.
It also applies to the interest-only investment product and standard home loans settled before 1 October 1998, effective 15 December.
Commenting on the interest rate cuts, ME Bank CEO Adam Crane said that an owner-occupier borrower paying principal and interest repayments on a 25-year $400,000 home loan could save $406 per annum when the rate cuts are applied.
“We have been speaking to thousands of our home loan customers over the past six months, many of whom have shared their concerns about the financial impact COVID-19 is having on households,” Mr Crane said.
“This decision will help many of those households through what is a difficult financial period.”
Suncorp has also announced that it has cut rates for SMEs and home loans.
The regional bank said it will reduce advertised fixed rates for small-business customers by up to 70 bps, starting from 2.69 per cent. For home loan customers, the bank has announced a new 1.89 per cent per annum two-year fixed home loan rate for eligible owner-occupiers.
The new rates for small business and home loan customers are effective from 19 November, with Suncorp telling our sister brand The Adviser that they are only applicable to new customers.
Citi Australia has reduced its fixed rate home loans following the RBA’s decision to lower the official cash rate. The non-major told The Adviser that the new rates are for new customers, but existing customers can contact Citi Australia to request the new rate.
Commenting on the announcement, Citi Australia head of mortgage distribution Matt Wood said: “As we continue to hit new record lows for interest rates, we are pleased to offer brokers and our customers one of the most compelling rates in market.”
The rates are effective from 12 November.
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