UPDATE 2 – 7/5/13 @ 5:20 pm: Commonwealth Bank and Westpac will also reduce their variable mortgage rates by 0.25%. We will have to wait until Friday for ANZs decision. I expect St George Bank, Bank of Melbourne, Bank SA and RAMS all to follow their owner Westpac. Check below for more changes.
UPDATE 7/5/13 @ 4:01 pm: NAB, ING Direct and Bank of Queensland have all reduced their home loan variable rates by 0.25% in line with the RBA
Today the Reserve Bank of Australia announced that variable interest rates are to drop by 0.25% in an effort to stimulate the economy.
Historically, 2.75% is the lowest interest rates have been ever. As inflation remains low the RBA is looking to stimulate the housing market and retail sector.
The major banks have no excuse not to pass on the full rate cut as they posted profits recently. We will keep an eye on the major banks – ANZ, Westpac, Commonwealth Bank (CBA) and NAB to see how they react to the recent decision. Normally their actions affect how other lenders reduce their rates.
|Current Bank Interest Rates||Rate Cut||Effective Date|
|Adelaide Bank/ Bendigo Bank||-0.25%||May 27th|
|Bank of Melbourne||-0.25%||May 17th|
|Bank of Queensland||-0.25%||May 24th|
|Commonwealth Bank||-0.25%||May 13th|
|Homeside Lending||-0.25%||May 13th|
|ING Direct Bank||-0.25%||May 17th|
|Member equity bank ( ME)||-0.25%||May 28th|
|St George Bank||-0.25%||May 20th|
|Suncorp Bank||-0.25%||May 24th|
We will keep you updated on current variable interest rate reductions. If you have any questions regarding this announcement and how it impacts on your circumstances, feel free to submit a mortgage quote.