Non-major lenders slice variable rates

by Julia Corderoy06 May 2016
More non-major lenders have responded to the Reserve Bank’s cut to the official cash rate, passing the 25 basis point reduction onto customers in full.

CUA has announced it will lower its standard variable rate for home owners by 25 basis points from 19 May.

CUA’s new standard variable rate for owner-occupiers will be 4.81%. According to the mutual, this will be 0.56% lower than the average advertised standard variable rate of the major banks. 

The standard variable rate for investors, however, will only be decreased by 20 basis points to 5.22% p.a.

In addition, CUA’s Rate Breaker Package will be reduced by 24 basis points to 4.37%, effective 17 May 2016. The Rate Breaker Package investor rate will fall to 4.67%.

QPCU has also passed on the full 25 basis point cash rate cut in full to members. 

The move will see all existing QPCU variable rate home loan members – both investors and owner occupiers – receive a 25 basis point reduction to their interest rates. 

QPCU will also be decreasing its Classic Home Loan discount offer for new business, from 4.07% to 3.97%. 

QPCU CEO Grant Devine said passing on the full cut showed the organisation’s commitment to providing great value for members. 

"We are very responsive to changing market conditions and always approach these decisions with a ‘member first’ attitude,” Devine said. 

QPCU’s new rates will be effective from 23 May 2016.