Rate update: who has moved

Rate update: who has moved

August 5, 2016: A total of 16 lenders have now confirmed they will be cutting their rates for Australian home owners, with some of the smaller lenders offering up never seen before rates as low as 3.35 per cent.

Most notable was the Reduce Home Loans announcement which, when came into effect on August 4 (available for new customers only), takes the prize for the lowest ongoing rate on the market.

P&N Bank announced that it will cut rates in excess of the RBA cut, passing on up to 26 basis points on one of its home loan products, while Bank Australia, Homestar Finance, Reduce Home Loans and Virgin Money have all confirmed they will cut some products by the full 25 basis points.

Peter Arnold, data insights director at RateCity.com.au, said some of the smaller lenders were taking advantage of the window to grab market share from the Big Four banks.

“While the big banks have come under fire for passing on barely half of Tuesday’s rate cut, a rate war has erupted as the smaller lenders race to have the lowest rate,” he said.

“Right now there are 45 lenders offering variable rates for owner-occupiers under 4 per cent, with some reducing their lowest variables to never seen before lows.”

Of those, just six has already announced they’re passing on the cut in full so there could be more rock bottom rates to follow.

“Some lenders are still being extremely tight-lipped about whether or not they’ll pass on this cut,” he said.

“If they choose not to cut, customers deserve to know so they can decide whether they want to look for a better deal.”

To see a live list of lenders which have cut rates, click here.

Who has moved

Company

Cut

Effective Date

Notes

ANZ

0.12%

12th August

 

Bank Australia

0.25%

5th August

 

Bank of Melbourne

0.13%

23rd August

Interest only loans reduced by 0.09%.

BankSA

0.13%

23rd August

Interest only loans reduced by 0.09%.

Bankwest

0.10%

23rd August

 

Commonwealth Bank

0.13%

19th August

 

Homestar Finance

0.25%

2nd August

 

ME Bank

0.10%

23rd August

 

NAB

0.10%

19th August

 

Newcastle Permanent

0.10%

8th August

 

P&N Bank

0.26%

26th August

0.26% cut applies to & Loan, 0.1 to 0.25% cuts to other loans.

Reduce Home Loans

0.25%

4th August

 

St George Bank

0.14%

23rd August

Interest only loans reduced by 0.09%.

Suncorp Bank

0.10%

24th August

 

Virgin Money

0.25%

8th August

 

Westpac

0.14%

23rd August

Interest only loans reduced by 0.09%.

Source: www.ratecity.com.au, above cuts refer to the lender’s standard variable home loan rate or similar product, conditions may apply. Rates up to date as at 5.30pm August 4, 2016.

Did you find this helpful? Why not share this article?

Advertisement

RateCity

Money Health Newsletter

Subscribe for news, tips and expert opinions to help you make smarter financial decisions

By signing up, you agree to the ratecity.com.au Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy

Advertisement

Learn more about nonspecific

Can I get a $1,500 payday loan with bad credit?

Yes, it may be possible to get a $1,500 payday loan with bad credit. Some payday lenders give loans to people with bad credit histories if they believe the borrower has the capacity to repay the loan.

Under Australia’s responsible lending rules, lenders aren’t allowed to approve $1,500 payday loans if they don’t believe the borrower can make the repayments.