Following the RBA
’s decision to cut the cash rate, others have followed suit.
The majority of lenders have passed on RBA’s full 25 basis point rate cut to their customers but Westpac has decided to exceed the rest by reducing their standard variable rate by 0.28% to 5.70% per annum.
This new rate will see Westpac’s home loan rates at their lowest level in six years, saving homeowners $624 per year on their repayments for an average mortgage of $300,000.
Yellow Brick Road Holdings Limited will cut rates on its Empower range of home loans by 25 basis points, offering customers a variable rate of 4.38% per annum on the Rate Smasher home loan, the lowest variable rate YBR has offered.
Their Empower Home Loan has also been cut to a variable rate of 4.64% per annum.
St George Bank, Heritage Bank
and Bank of Melbourne will all cut their variable rate by 25 basis points. St George announced a cut from 5.99% to 5.74% per annum, which their General Manager Andy Fell says, “will help more customers into new homes.”
Heritage Bank’s special Discount Variable rate will sit at 4.34% and its special Standard Variable rate at 4.64%.
Heritage CEO John Minz said the cut, “maintained Heritage’s competitive advantage against the big banks and delivered on its People first
Bank of Melbourne standard variable home loan rate will go from 5.90% to 5.65% per annum.
Australia has also responded by cutting interest rates by 0.25% on their Advantage Home Loan Product Range, the first time since August 2013 and to a record low of 4.34%.