Major non-bank lenders have cut their variable home loan rates following yesterdays decision by the Reserve Bank to cut official interest rates by 0.25 per cent. The Big Four banks were quick to cut their home loan rates by 25 basis points, and now non-bank lenders are passing on the savings by lowering rates also.
Aussie Home Loans says their variable rate will fall from 9.55 per cent to 9.30 per cent, effective September 5, and indicated that further cuts were likely. Similarly, RAMS Home Loans will cut it's rate by 0.25 per cent to 9.29%, effective as early as tomorrow.
RAMS General Manager, Melos Sulicich said while short-term funding costs remain volatile, RAMS wanted to pass on the full rate cut to customers.
"We are simply listening to the needs of borrowers who have told us they are finding it increasingly difficult to cover the high cost of bills, repayments, petrol prices and groceries," Mr Sulicich said.
Bendigo Bank will also be cutting it's variable rate for new and existing customers by 25 basis points to 9.40 as of next Monday. Bendigo will also be reducing interest rates on other loan products such as line-of-credit facilities, business loans, overdrafts and credit cards.
The cuts from the banks and non-banks lenders represent a saving of around $50 per month on a $300,000 mortgage, and will be welcome relief for many home owners struggling with several consecutive rate rises over recent years.
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