Non-bank slashes variable rates by 25bps

by Julia Corderoy11 May 2016
Non-bank lender Firstmac has announced it will pass the full cash rate cut onto consumers.

Effective Monday 23 May, Firstmac owner occupier and investment variable home loan rates will be reduced by 25 basis points.  

Firstmac managing director, Kim Cannon, said it is disappointing not to see every lender pass on the Reserve Bank’s rate cut in full.

“It is disappointing that nearly two thirds of Australian lenders have either failed to pass on last week’s RBA rate cut in full, or have not yet announced their response, leaving mortgage brokers in an awkward situation with their customers.

“There is plenty of competition in the home loan market, and bank customers can see they could be saving money on interest if they chose another lender as well as getting straight answers about how much they will be paying.”

According to comparison site finder, 49% of the 74 lenders on its database have still not announced their rate changes one week after the RBA meeting. Only 26 lenders have passed on the cut in full, while 12 lenders have kept some of the cut for themselves.