 St George Bank cuts home loan rates
Home loan interest rates have been falling steadily as the Reserve Bank of Australia (RBA) cuts the official interest rate in an attempt to help the slowing property market and low consumer confidence. 
All major banks and non bank lenders are cutting home loan rates but, not many are passing on the cuts in full.
St George Banks has cut their standard variable mortgage rates by 62 basis points. The rate will fall to 7.74 per cent, from November 14. However, the latest RBA rate cut was 75 basis points.
"Due to the continued impacts of the global financial crisis, financial institutions are facing significantly higher costs in both the short and long term wholesale funding markets," St George head of retail banking Les Matheson said.
"These much higher funding costs overall mean that we are unable to pass on the full RBA decrease of 0.75 per cent.
"However, over the last nine weeks and including today's reduction our rates have come down by a total of 1.93 per cent."
St George says the latest rate reduction saves an average home owner with a $250,000 mortgage around $120 per month
Interest rates have also fallen on fixed rates, with St George cutting 25 basis points off the rate.
All other major banks have passed on most of the RBA's rate cut, but AMP banking, Police & Nurses and Wizard Home Loans are the only lenders to pass on the full 75 basis points.
Join the discussion on St George
|