We  all know the news that all banks and smaller lenders have passed on the full 0.25% rate cut.

The question is, when will they pass it on? As mentioned in an earlier post lenders are quick to pass on interest rate increases but slow to pass on interest rate decreases. Below is a table comparing the differences between the banks between the November and December interest rate decreases.

The biggest difference between the rate announcement and the time they are going to pass on the rate cut is Bendigo and Adelaide Banks. In the last 2 months their customers are paying an extra 0.25% over 50 days. CBA was the quickest to pass on the rate cut in November but has taken eleven extra days this time round.

From this data it is important to choose a lender that pass on rate cuts as soon as possible. So called comparison rate schedules never really show the true cost of a loan and you need to be aware which lenders serve their customers best.

Yesterday saw ANZ to be the first of the big banks to pass on the full interest rate cut to its variable rate customers.

Later that day NAB, ING Direct and Commonwealth Bank followed. Westpac waited until the evening to announce their intention. I expect all the second tier banks and other lenders to follow.

Obviously, from this behaviour I expect that we will not see full interest rate cuts in the future or interest rate increases outside the Reserve Bank of Australia’s recommendations.

We will keep you updated when the lenders will be passing on the interest rate cuts and the new standard variable rates for each bank and lender.

NAB announced that it will pass on the full 0.25% rate cut to its customers following ANZ earlier today.

We are now waiting on the two other major banks and 30 or so other lenders to make their announcements.

We will also keep you updated on when they will be passing on these rate cuts.

If you need help with your mortgage please contact us

ANZ announced today that they will pass on the full 0.25% rate cut to its variable mortgage rate customers.

This may force the other banks to follow suite.

As always we will keep you updated as the news from the other banks and lenders come through.

The Bank of Queensland announced today that they will pass on the full 0.25% interest rate cut but what’s the catch.

The catch is they will not reducing their interest rates until the 16th December and this will bring their standard variable rate to 7.36%.

Assuming that the other banks and lenders pass on the full rate cut there are much better offers.

If you would like to compare your mortgage to hundreds of other loans complete the contact form below to speak to one of  our licence mortgage brokers. A 0.25% difference on a mortgage of $300,000 will save you $750 yearly.

The Reserve Bank of Australia cut interest rates from 4.50% to 4.25% today.

This may seem to be an early Christmas present for mortgage holders but there are rumors that the banks will not pass on the full rate cut. So here we go again. Let us wait and see what ANZ, NAB, Westpac, Commonwealth Bank, ING Direct and the other lenders do. As always we will keep you updated on the following in the next coming weeks;

- which banks passed on the full rate and those who did not
- when the banks will be passing on the interest rate cut. This usually ranges from 3 and 28 days
- new loan discounts for fixed and variable mortgage rates

The RBA are on holiday over the Christmas period and their next meeting is at February 2012.

If you have any questions about your home, investment or commercial loan please do not hesitate to contact us for free advice or go to our mortgage website.

It came to our attention today that 2 year and 3 year fixed rate home loans and investment loans have dropped below 6%.

As discussed last week we saw a trend that fixed rates falling and now 3 year fixed rates have dropped below six percent.

These rates are available  from Australia’s most recognised lenders. To take advantage of this offer please contact one of our brokers by completing the form below. They will show you what type of fixed rate loan suits you lending needs.

Since the last interest rate cut, home loan interest rates have come down. Fixed interest rates are also falling and for the first time in 2 years we see a 2 year fixed rate fall below 6%.

Below are some of the better interest rates from various lenders around Australia that include ANZ, NAB, Westpac, Commonwealth Bank, ING Direct, Bank West and many more.

Basic Variable – 6.66

Variable Offset – 6.55%

2 Year Fixed – 5.99%

3 Year Fixed – 6.20%

3 Year Fixed – Interest in Advance – 6.05%

5 Year Fixed – 6.39%

Low Doc -  6.66%

Line of Credit -  6.63%

If you would like to take advantage of speaking to one of our professional mortgage specialists to discuss which home loan or investment loan suits your needs please complete the form below.

On Monday we will see some fixed rates loans go under six percent. This is a great opportunity for mortgage holders to take advantage of these super low rates if it suits them to do so.

Just over two years ago we saw some lenders offer fixed rates as low as 5.50% right after the global financial crisis and they did not stay there for long.

If you are looking to fix part or the whole of your mortgage feel free to contact on of our brokers by filling out the form below.

Having been in the mortgage industry for just over 6 years I have seen home loan interest rates rise and fall. One of the most common observations is that banks are slower to pass on a rate cut compared to when interest rates rise.

The table below shows that there is a 24 day difference between banks passing on the interest rate cut. Commonwealth Bank was the quickest to pass on the recent rate cut 3 days after it was announced. The worst offenders are Bendigo Bank and Adelaide Bank making their customers wait until  the 28th November before they get some relief.

NAB are waiting intil the 11th to pass on the cut while ANZ and Westpac are letting their customer wait 2 weeks until they recieve relief. In a funny move BankWest are reducing their interest rates on the 14th of November but they are letting their Rate Tracker and Rate Tracker Ultra customers wait until the 18th. They say it is apart of their terms and conditions for these products.

Current Bank Interest Rates

Please Note: The rates above are each banks standard variable rate. There are many other loans and discounts available from these lenders

Obviously, the strategy of delaying interest rate decreases and passing on rate increases quickly is all about profit making. All banks and non banks are guilty of this practice and there is not much the consumer do about it but vote with their feet.

If you are interested in getting a FREE HOME /INVESTMENT LOAN CHECK from an ASIC liscenced broker in your local area, feel free to complete the contact form below. They will compare your mortgage against hundreds or other loans to see if you are over paying on interest repayments and fees.