Lenders Lower Interest Rates

Following the Reserve Bank lowering of the cash rate by 1.00 percent on Tuesday most lenders are passing on the full reduction to customers who are currently on or applying for variable interest rate home loans. Lenders who have already officially announced the full 1.00 percent cut include;

  • AMP changing Friday 13th February 2009 for new business and Sunday 15th for existing customers
  • ANZ changing Friday 13th February 2009
  • Commonwealth changing Friday 13th February 2009
  • Heritage changing Friday 20th February 2009
  • ING changing Friday 16th February 2009
  • NAB Homeside changing Friday 13th February 2009
  • Nationwide Lending changed as of 8th February 2009
  • Suncorp changing Monday 23rd February 2009
  • Westpac changing Friday 9th February 2009

Other lenders have announced cuts to the variable interest rates will be implemented but have not officially advised Ability Finance at this time. As always we suggest to customers and readers that the lowest “interest rate” alone is rarely a practical way of identifying which lender and loan may suit you best. Many factors and costs can alter the real cost of a home loan. Other factors which may be encountered which alter the real cost of a home loan could be any combination of the following;

  • Loan to Value Ratio, LVR
  • Loan amount
  • Applicants income amounts and type of income.
  • Lenders Mortgage Insurance, LMI
  • Loan size
  • Security type, amount of securities and location of the securities
  • Fees and Charges such as application fee, valuation fees, package fees, settlement fees, split fees, legal fees, deferred establishment fees, break costs, discharge fees, loan switch fees, redraw fees, offset account fees etc
  • Features that may be combined and save yu additional costs could include a savings or transactional account, ATM access, Cheque accounts, Credit cards, Direct Debit, EFTPOS card, BPay, Internet Banking, Phone Banking, Loan Portability, Construction or Owner Builder options.
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