Non-bank slashes rates by 85bps

by Maya Breen15 May 2015
Non-bank lenders RESIMAC Financial Services and Firstmac have both passed on the RBA’s full 25 basis point rate cut while Homeloans has made cuts up to 0.35% and non-major AMP Bank has cut all variable home loan rates by 20 basis points.

In addition to the full 25 basis point rate cut to both its prime and specialist borrowers, RESIMAC is offering further discounts of up to 60 basis points across its entire specialist lending product range, a total 85 basis point reduction for new business.
RESIMAC’s chief commercial officer Allan Savins said the latest cut is the third time this year the lender has dropped rates on specialist products.
“This latest round of reductions will see some of our rates reduced by as much as 150 basis points since the beginning of the year."
Firstmac has also reduced the minimum loan size for its 4.19% variable rate VIP Package special from $450,000 to $250,000 and waived the $295 annual fee for the life of the loan.
Firstmac managing director Kim Cannon said brokers could help their customers save money every month in interest.
“This VIP Package special will enable brokers to offer a great rate loan, with no annual fee, to more customers.
“Three of the big four banks have not passed on the RBA rate cut in full, which leaves their customers with some big questions,” he said.

Homeloans Ltd has cut rates on its Ultra and Ultra Plus full doc products for new business by up to 0.35%.

“Reduced interest rates are good news for all borrowers and, as a recognised leader in lending to first home buyers, we continue to support owner occupier borrowers,” says Homeloans’ general manager sales, Ray Hair

The AMP Essential Home Loan will be reduced to 4.20% as a result of its 0.20% cut across all variable rate home loans.  
RESIMAC’s cuts are effective now until 30 September 2015 with Firstmac and AMP Bank cuts effective 25 May 2015.