Aussie Home Loans have cut their standard variable rate once again, this time by 40 basis points. The non-bank lender had already cit rates by 50 basis points, prior to last week's reduction of official rates. Aussie's variable rate is now 7.65% and their basic variable rate will fall to 6.99% for first home buyers.
Executive chairman John Symond says their new rate is lower than the big four banks and hopes it will lead to increased competition.
"The big winners from the rate drops are consumers, who will enjoy renewed competition among the major lenders in the market," Mr Symond said in a statement.
"Our first home buyer rate at under seven per cent should also provide a much needed stimulus to the housing sector."
The new rates are effective from today and apply to new and existing Aussie Home Loan customers.
Last week the Reserve Bank of Australia (RBA) cut official rates by a shock 75 basis points, but so far none of the banks have passed on the full amount to borrowers, blaming high funding costs and the the global financial crisis as reasons for the smaller cuts of between 58 and 65 basis points.
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