The rate war between lenders has begun with a suite of lenders announcing they will pass on the full 25 basis point RBA
rate cut to customers.
ME Bank’s Standard Home Loan variable interest rate will drop to 5.13% p.a. and its member package rate will fall to 4.93% p.a. The new home loan rates are effective 20 February 2015.
Direct have also announced it will lower the interest rate on its variable mortgages by 25 basis points, effective 20 February 2015. As such, the rate on ING
Direct’s Mortgage Simplifier product will be 4.97% p.a.
Meanwhile, non-bank lender Australian First Mortgage announced fixed rate cuts on two of its full-doc Flexible range products, just prior to the official RBA cash rate call yesterday.
The 4-year fixed rate is down by 0.41% to 5.12%, and the 5-year fixed rate it is down by 0.26% to 5.22%. AFM says the rate movements are effective immediately and also include 100% offset facility and allow for construction as well.