When the Reserve Bank of Australia (RBA) decided to reduce the official cash rate by 25bps to 1.25 per cent, several lenders dropped their variable home loan rates. It’s worth taking note of which lenders passed on discounts and think about whether you can get a better deal. Is it time for you to refinance?
CBA passed the full 25bps cut to its mortgage holders with changes applying to its owner-occupied and investor variable home loans from 25 June.
NAB also passed on the rate cut in full, dropping its variable home loan rates by 25bps effective 14 June.
It’s been well documented that ANZ decreased variable home loan rates by only 18bps across all its mortgage products, effective 14 June.
Westpac reduced Owner Occupied (OO) loans by 20bps however it went a step further with investor customers with Interest Only loans, giving them a 35bps reduction. They have also introduced a new first home buyer special for OO Principal & Interest customers with a fixed rate of 3.49 per cent p.a. for five years.
There are additional discounts available on some packaged home loans too so it’s worth knowing if your home loan product is one of them! If you’re not sure what a packaged home loan is, please find more info here: (hyperlink to Loan Features page).
Want to see how much you could save with the new reduced home loan rates? Use our calculators now!
For more information about home loans and the different products and rate types on offer, check out our home loan page: Home Loans
To find out if the interest rate reductions apply to you, please call our office on 03 9370 9811 and speak to Maryann or Graham.