Another lender has announced rate cuts, pipping the big four by more than 50bps.
ME Bank has cut its variable mortgage rates by 30bps. Though the bank followed the lead of the major banks in not passing on the full 50bps of RBA cuts, its 6.44% variable rate remains 55bps below the lowest of the major banks, NAB.
"Over the last 18 months we have reduced our rates more than the major banks. Between November 2010 and May 2012, the major banks reduced their rates on average by 0.34%p.a. or less, while ME Bank delivered 0.55%p.a. in rate cuts," the bank's CEO, Jamie McPhee, said.
McPhee said the lender had also chosen to hold rates steady during out-of-cycle moves from the majors. McPhee claimed the bank had borne higher funding costs, choosing to withhold a portion of the current rate cut rather than pass on a rate rise to consumers.
"We have been steadfast in keeping the full financial burden of increased funding costs off customers for as long as possible," he said.