The country's fifth largest bank went one better than the big four yesterday by announcing a 0.3 per cent cut to their home loan interest rate. The move came just hours after the big four banks - Commonwealth, National Australia Bank, Westpac and ANZ - announced a cut of 0.25 per cent following the Reserve Banks decision to cut official rates by 25 basis points.
St George had previously hiked their rate a little higher than the major four banks and this slightly increased cut will bring their main home loan product more in line with their competitors. Unlike the majors, who say their cuts will be effective as early as next week, St George say the cut won't apply until the end of month.
St George estimates that home owners will save around $55 per month on their repayments on the average 30-year $250,000 loan.
"We are very mindful of the impact of rate rises on our customers and have upheld our commitment that if funding costs were to reduce, we would then look to adjust our rates,'' said Les Matheson, the head of St George's retail bank.
The banks and some non-bank lenders have been looking to reduce their home loan rates following the RBA's decision yesterday. Commonwealth now stands out at 9.33%, NAB and Westpac stand at 9.36%, while ANZ and St George come down to 9.37%.
The RBA made the announcement during federal parliament yesterday afternoon. The cut in official rates by 0.25 per cent is in response to a sudden slowing of the economy for the first half of this year.
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