Non-major joins rate-slashing fray

by Manuelita Contreras25 Jan 2018

Brisbane-based Auswide Bank is the latest to join a chorus of lenders dropping their mortgage loan rates to entice borrowers.

Auswide said it is offering owner-occupiers a discounted variable rate of 3.59% p.a. on new principal and interest loans of $100,000 or more with a LVR of up to or equal to 90%. It has also made available a discounted three-year fixed rate of 3.99% p.a. for owner-occupiers.

The bank has cut its investment principal and interest loan rate for borrowers with an LVR of up to or equal to 90% by 221 basis points. From 6.10%, the rate now sits at 3.89%. 

Auswide has also cut its variable rate for investment interest-only loans of $100,000 or more with a LVR of up to 80% by 191 basis points. The rate is now 4.19%.

This follows moves by several lenders in the past two weeks to slash their rates to attract owner-occupier and investment borrowers. 

ANZ went against the grain when it announced last week (19 January) that it was increasing its rates for one to five year fixed loans and fixed owner occupier and investment loans by up to 20 basis points.

Auswide's chief customer officer, Damian Hearne, said Auswide continues to challenge the market with competitive interest rates.

“At Auswide Bank we believe in making a big difference and using the fact we are a small lender to help our customers," he said.  

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