For the second consecutive month, the Reserve Bank of Australia has cut the official cash rate by 0.25% – this has resulted in a new record low cash rate of 1.00%
As with the previous rate cut, some banks chose to pass the interest rate on in full, whilst others didn’t.
The ANZ is the only one of the big 4 passing on the rate cut in full, amongst heavy criticism for not passing the full value of June’s rate cut. The other 3 big 4 lenders have not passed this cut on in full.
The Commonwealth has elected to reduce rates by 0.19% for P&I (principal and interest) standard variable rate loans, and 0.25% for interest only loans.
Westpac will reduce both P&I and Interest only home loan rates by 0.2%, whilst reducing the rate for interest only investment loans by 0.3%
NAB has announced it will reduce all variable rate home loans by 0.19%.
This means that there are lenders in the market offering rates close to 3.00% – with the lowest rates generally available for owner occupier homes with an LVR (loan to value ration) of 80% or less.
If you’re interested to see if you can obtain a better deal on your home or investment loan, contact one of the team at Flexible Capital today.