Aussie Home Loans has cut variable interest rates by 30 basis points. The move came immediately after ANZ reduced their variable home loan rate by 25 basis points. 
The decision to cut home loan rates come after the Federal Government announced a rescue package for Australia's economy, and a global decision by many countries to guarantee all bank deposits and international loans raised by Australian banks.
ANZ chief executive Brian Hartzer said the step is to reward customers and no wis the right time.
Speaking to the media in Perth today Shadow Treasurer Julie Bishop said compared with
the rest of the world Australia's banking sector was strong and it was
time for the banks to pass on record profits to their customers.
“I would urge all institutions to pass on rate cuts to small business in particular,” she said.
“Not only the mortgage holders, but also small business so they can decrease their loans and their overdrafts.
“It is essential for the growth and the stability of our economy
that small business can continue to grow and continue to employ people.
Jobs and job security is the most important issue going forward.”
The latest cuts will now save lenders about $50 a month on a $300,000 mortgage, however there are some experts who believe that home owners should continue making repayments at the same level as before the cuts to help pay off the mortgage faster. Australia's property market received further boosts than just interest rates cuts last week when Prime Minister Kevin Rudd announced increases to the first-home buyer grant, which has led to an increase in enquries to builders and mortgage brokers, from first-home buyers looking to buy property now.
Join the discussion on Legends or Losers: Review your broker
|