Non-majors continue rate cut frenzy

by Julia Corderoy14 Jul 2016
Several non-major lenders have continued the rate cut frenzy, announcing a raft of fixed and variable rate reductions this week.

Virgin Money has cut variable and fixed rates on its new Reward Me Home Loan. A range of owner occupied variable rates have been dropped by 5 basis points, effective 13 July, starting from 3.94% for loans above $750,000 with an LVR up to 80% to 4.24% for loans up to $499,999 with an LVR between 80-90%. 

Investment variable interest rates have been cut by up to 15 basis points, starting from 4.19% for loans above $750,000 with an LVR up to 80% to 4.54% for loans up to $499,999 with an LVR between 80-90%.

Finally, Virgin Money has cut its three-year fixed rates for both owner occupied and investment loans by 20 basis points, to 3.99% and 4.19% respectively. 

Bank of Sydney has reduced the variable rate on its owner occupied Expect More Home Loan by 9 basis points, to 3.79%. This applies to loans with an LVR up to 70% for properties located in Metro postcodes.

“It’s a really aggressive owner occupier market out there and we are determined to keep pace with our competitors to ensure our customers are receiving competitive pricing and service levels,” Bank of Sydney head of third part distribution, Steve Sampson said.

Suncorp Bank has also announced interest rate changes this week, introducing its ‘Better Together’ special offers for owner-occupiers and investors. 

The ‘Better Together’ special offers a variable rate of 3.92% on new owner-occupied Back to
Basics home loans of at least $150,000 with a maximum LVR of 90%, and a rate of 4.19% for new investment borrowings.

Owner-occupiers will also be offered 4.14% on new loans of at least $150,000 with an LVR between 90% and 95%.

Suncorp Bank head of intermediaries Steven Degetto said the new offers provide brokers and customers with value heading into the new financial year.

“The offers include transactional banking, discounted home and contents insurance as well as savings on fees,” Degetto said.

“There will be no ongoing account keeping fees on the new home loan and transaction account – an essential requirement of the offers.

“Our commitment to creating value for our customers as well as our simple, easy and convenient approach will strengthen our relationships with our broker partners and customers.”