Adelaide Bank has trimmed interest rates on all variable rate home loans for new business by 20 basis points.
Damian Percy, general manager of Adelaide Bank says the non-major will also waive ongoing monthly fees on its popular SmartFit home loan.
“Our fully featured SmartFit variable rate home loan, with 100% offset is now 4.44% with no ongoing monthly fees for new customers with an LVR of less than 90%.
“It’s a hugely competitive mortgage market at the moment, which is great news for borrowers and Adelaide Bank have recognised that we need to move closer to the front of the field. The pencils have been sharpened and I can further announce that we are waiving the ongoing monthly fees on our SmartFit product for new business – representing a further saving of $180 per year for customers in ongoing administration fees.”
The December Quarter 2014 edition of the Adelaide Bank/REIA Housing Affordability Report found that the Australian weighted average median house price is now $645,000. Percy says this means new customers borrowing 90% of the median house price would save around $70 per month with the SmartFit variable rate home loan.
“The report also shows that the average loan size to First Home Buyers increased by 3.5% over the December quarter to $327,767. A 20bp reduction to the SmartFit product equates to a saving of almost $40 per month on a loan this size,” Percy added.
“Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage managers and brokers.”
The new rates came into effect Tuesday 14 April 2015.