After two months of home loan interest rate moves only eight providers have passed on the full cuts to its customers.
Athena, Bank First, Greater Bank, Homestar, Newcastle Permanent, RACQ Bank, The
Capricornian, and UBank are the only lenders that passed the full 50 basis point total cash rate reduction over the past two months.
The big four banks, carrying the majority of home loans, passed on smaller cuts with Commonwealth Bank and NAB both reducing by 44 bps over two rate cuts, ANZ offering a 43 bps cut over both cash rate cuts, and Westpac cutting by a meagre 40 bps.
Canstar’s finance expert, Steve Mickenbecker, says: “Decreases to variable rates were expected in July following the second Reserve Bank cash rate cut in as many months, though slashed fixed rates might have taken some by surprise.”
According to Mozo, the best variable rate loan is the Reduce Home Loans Rate Slasher at 2.89 per cent.
Out of the major banks, the best basic variable owner occupier is the Commonwealth Bank Extra Home Loan and NAB Base Variable Rate Home Loan at 3.35 per cent.
From the non-majors, the best three-year fixed rate is Mortgage House at 2.96 per cent.
From the big four, the best three-year fixed rate loans are offered ANZ, CBA and Westpac are at 3.28 per cent and then NAB at 3.29 per cent.
Earlier last month, ANZ cut fixed rates by up to 96 bps, while NAB and CBA cut by 80 bps and Westpac by 70 bps.
Mickenbecker says: “The cuts to fixed rates reflect the low cost to lenders of funding their loan book for longer terms in a falling rate environment here and overseas.”
ANZ’s and CBA’s investor interest only variable loan is 4.48 per cent followed by NAB at 4.90 per cent and Westpac at 4.92 per cent.
According to comparison site Mozo, 64 home lenders made reductions after the cut in July with the average cut being 18 bps.
Some of the biggest lenders cut the following: AMP 20 bps, Bank of Queensland 15 bps, Bankwest 19 bps, Bendigo Bank 20 bps, Heritage Bank 15 bps, ING 20 bps, ME 15 bps, St George Bank 20 bps and Suncorp 19 bps.