MyState and AMP are the latest non-major lenders to cut variable home loan interest rates.
MyState Limited – which includes MyState Bank and The Rock – announced it would reduce its variable home loan by 10bps following the Reserve Bank of Australia’s decision to cut the cash rate by 25bps earlier last week.
“These changes ensure MyState’s home loan rates continue to be among the lowest in the market, and recognise the needs of those reliant on term deposits for income to live on, or to increase savings,” Huw Bough
, MyState’s general manager – sales and distribution, said.
“Two thirds of MyState Limited’s funding comes from retail deposits and we need to offer highly competitive deposit rates to support our market leading new home loans. We can’t have one without the other.”
MyState’s and The Rock’s variable home loan rates will be reduced by 10bps effective 30 August
2016, which will reduce MyState’s Special Residential and The Rock’s Essentials Home Loan to 3.89% for loans with a property value less than or equal to 80%.
AMP Bank will also reduce interest rates across all variable rate home loans by 10bps, effective Monday 22 August 2016.
The AMP Essential Home Loan for owner occupied loans will be reduced to 3.98%. The AMP Professional Pack Home Loan for owner occupied loans of $750,000 and above will be reduced to 3.85%.
"Changes to our home loan rates take into account not just the decision by the RBA
but other factors such as wholesale funding costs, which are continuing to increase," Sally Bruce
, managing director of AMP Bank said.