BankWest will cut their home loan interest rates by 30 basis points, which is more than the Big Four banks. However, BankWestwill make customers wait another three weeks until September 26 before passing on their rate cut.
The Big Four banks have all cut their home loan interest rates by 25 basis points, with the cuts coming into effect immediately. But although BankWest may be cutting the rates further than their competitors, some industry insiders are critical of the delay. Christopher Zinn, spokesman for consumer group Choice, says the delay is there to boost profits.
``Why should it take three weeks? To delay and defer any rate decrease doesn't really make any sense, unless you are seeking to profit from dragging your heels,'' he said.
Mr Zinn said the timing of the cut was a very significant part of the deal.
``If you're going to skite about bringing your rates down more than the (major) banks, you should really follow through and bring it down at the same time so people can compare apples with apples,'' he said.
BankWest have defended their decision saying they are waiting for their overall funding position to improve so they can fully pass on the official interest rate cuts made by the Reserve Bank to their customers. BankWest's Rate Tracker home loan, for the first two years of loans, will be cut tomorrow by 25 basis points.
The RBA cut official cash rates by 25 basis points last week, prompting demands for home loan interest rates to also be cut to relieve some of the mortgage stress many Australian home owners are facing with record high interest rates.
St George, Australia's fifth largest bank will also reduce rates by 30 basis points at the end of September.
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