Big Four Cut Rates

Newcastle Herald

Thursday November 6, 2008

GR

AUSTRALIA'S big four banks have moved to reduce their variable home loan interest rates, with Westpac, ANZ and National Australia Bank announcing cuts yesterday.

Commonwealth Bank of Australia announced its rate reduction on Tuesday.

But none of the banks are ready yet to pass on in full this week's 75 basis point cut in the cash rate by the Reserve Bank of Australia (RBA), citing substantially higher funding costs.

Westpac said yesterday it would cut its standard variable mortgage rate by 65 basis points to 7.71 per cent, effective from November 10.

NAB cut its variable mortgage interest rate by 62 basis points to 7.74 per cent.

NAB also cut its One Year Intro fixed rate by 100 basis points to 5.99 per cent.

ANZ will lower the rate for its standard variable home loan by 58 basis points to 7.74 per cent per annum, effective November 14.

CBA said on Tuesday it would lower its variable home loan rates by 58 basis points.

AMP said it would cut its standard variable home loan interest rate by 75 basis points to 7.87 per cent per annum, in line with the RBA cut.

? Hunter lender Newcastle Permanent said yesterday it would reduce its variable mortgage interest rates by 0.68per cent.

Hunter United led the charge on Tuesday when it reduced its variable rate by the full 75 basis points.

© 2008 Newcastle Herald

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