Don't hold your breath on out-of-cycle cuts, says lender

by Mackenzie McCarty22 Feb 2013
However, IMB national manager, third party sales, George Sotiros, tells Australian Broker comments like these are jumping the gun.

“When they’re talking about moving out of cycle – I’m not aware of anyone who’s made a sweeping cut across their entire portfolio. When it happens, it’ll be great, but at this point I don’t think anyone’s doing anything too exciting just yet.”

Sotiros adds that IMB’s offer of a 0.05 percentage point reduction only applies to one product and is not available through the broker channel.

BMC Mortgage and Holiday Coast Credit Union similarly cut rates on several of their products, by 0.10 percentage points and 0.20 percentage points respectively.

Hutchison remains positive, however, saying borrowers need to take control of their home loan instead of waiting for a discount from their lender.

"This is the start of something extraordinary, as it’s likely to shake up the home loan market. It opens the door for borrowers to expect better deals and more discounts without needing to wait for the Reserve Bank to lower the cash rate.”

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  • by PeterT 22/02/2013 11:08:57 AM

    Hutchison needs to think a bit harder about his statements. Most lenders have offered out of cycle decreases via discounts on offer, they just haven't dropped their standard variable rates. I will grant him though, that he only really talks about SVRs because it makes his sponsors look better than they are.
    The rate drops he's talking about are nothing special either. These lenders are just falling in line with what everyone else has been offering for over 12 months now.