 Non-bank lenders drop rates
Both RAMS Home Loans and Aussie Home Loans have moved to cut rates by a full one per cent.
Effective from February 9 RAMS Home Loans has reduced its standard variable home loan rate to 5.69%, which is 22 basis points below owner Westpac. Westpac was the first major lender to cut rates by 1%, taking its standard variable rate to 5.91% also effective 9 February. Furthermore, the RAMS Rate Relief home loan will also be reduced by the full 100 basis points, offering customers a rate of 4.69% for the first two years of the loan.
Aussie Home Loans are also cutting 1 per cent off their standard variable rate from February 13. Their rate will fall to 5.65% for new and existing borrowers. The Commonwealth Bank, which owns a 30% stake in Aussie, is also dropping it's variable rate, on February 13, to 5.74% as announced last week.
Last Tuesday the Reserve Bank of Australia cut 100 basis points off the official interest rate. It was the third one per cent cut in the past five months, bringing the official cash rate down to 3.25% the lowest level for more than 40 years.
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