RAMS Home Loans have gone one step further than rival non-bank lender Wizard Home Loans, and the major Australian banks, by cutting their rates by 90 basis points. RAMS variable home loan rate will drop to 8.39 per cent as of October 13 for new and existing customers.
By passing on 90 per cent of the cut from the Reserve Bank, RAMS have made the biggest cut out of any lender so far.
All of the major banks, as well as some non-bank lenders, dropped home loan rates by 80 basis points this week, in direct response to the decision from the RBA to cut official interest rates by 100 basis points.
RAMS chief executive Melos Sulicich said RAMS was in a strong position to pass on the biggest interest rate reduction in 16 years by the RBA.
Mr Sulicich said funding costs remained high and global funding markets remain unstable but RAMS moved quickly to pass on the maximum amount it possibly could.
The RBA met on Tuesday and decided on the drastic one per cent cut, taking the official cash rate from 7 per cent to 6 per cent, effective from Wednesday.
RAMS is also changing its Rate Relief home loan, which now offered new borrowers a further one per cent discount on new standard variable rate loans for the two years of the loan to 7.39 per cent.
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