Home loan rate cuts - October 2008

Update: November interest rates cuts.

After Reserve Bank of Australia (RBA) cut official interest rate by smashing 100 basis points to 6.00%, everybody's eyes are on banks - how much of the rate cut will be passed on to consumers?

Here at Rate Detective we provide summary of major banks home loan rate cuts to their customers:

Westpac

Westpac was first to announce home loan cut by 80 basis point. The new standard variable rate will be 8.56 per cent; rate cut will be effective from October 13.

Commonwealth Bank (CBA)

CBA also announced home loan cut by 80 basis point. The new standard variable rate will be 8.53 per cent; rate cut will be effective from October 13.

ANZ

ANZ Bank reduced its standard variable home loan rate by 80 basis points to 8.57 per cent. Rate cut will be effective from October 13.

NAB

NAB's 80 basis point cut takes its home loan rate to 8.56 per cent, effective October 20.

St George Bank

St George lowering its standard variable home loan interest rates by 0.80% pa to 8.57% pa, effective 13 October 2008 for new and existing customers.

Bendigo Bank

Bendigo has lowered its residential variable home loans by 80 basis points to 8.6 per cent for new and existing customers from October 20.

BankWest

BankWest has cut its standard variable rate by 80 basis points from 9.25 per cent p.a to 8.45 per cent per annum. BankWest rate tracker home loan will also move 80 basis points from 8.35 per cent p.a. to 7.55 per cent.

Rate cuts effective from October 17.

Suncorp

Suncorp announced a decrease on variable rate home loans of 0.8% pa, following the Reserve Bank of Australia's announcement of a cut to the official cash rate.

Effective 20 October, Suncorp's variable rate on home loans will decrease by 0.8% pa to 8.62% pa (8.77% pa Comparison Rate) for new and existing customers.

RAMS Home Loans

RAMS Home Loans said it would cut its variable home loan rate by 0.9 of a percentage point to 8.39 per cent, effective October 13.

RAMS also said its Rate Relief home loan offered new borrowers a further 1 per cent discount on new standard variable rate loans for the two years of the loan to 7.39 per cent.

AMP Bank

AMP Banking will cut its standard variable home loan interest rate by 80 basis points to 8.62 per cent per annum.

The change is effective for new customers from Saturday 18 October and Monday 20 October for existing customers.

AMP Banking's First Home Saver Account introductory interest rate of 8 per cent (7 per cent variable interest rate with a 1 per cent bonus) is unchanged. A decision on other deposit products is yet to be made.

ING Direct

Following the Reserve Bank decision to decrease the official cash rate, ING DIRECT will reduce all variable mortgage rates by 0.80% pa effective from 20 October 2008. Their standard variable home loan Mortgage Simplifier will reduce to 7.94% from 8.74%.

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Published on October 10-th, 2008 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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