Home Loan Interest Rates – Banks Slow to Pass On Cut

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

Bank Rate Cut Effective date New Rate
Adelaide Bank/ Bendigo Bank -0.25% 28th Nov 7.55%
AMP -0.25% 11th Nov 7.57%
ANZ -0.25% 14th Nov 7.55%
Bank of Melbourne -0.25% 14th Nov 7.55%
BankWest -0.25 14th to 18th 7.45%
Citibank -0.25% 18th Nov 7.77%
Commonwealth Bank -0.25% 4th Nov 7.56%
Connective Home Loans -0.25% 7th Nov 7.57%
Homeside Lending -0.20% 11th Nov 7.45%
ING Bank -0.25% 7th Nov
Member equity bank ( ME) -0.25% 7th Nov 7.54%
Macqauire Bank -0.25% 21 Nov 7.55%
NAB -0.20% 11 Nov 7.47%
St George Bank -0.25% 14th Nov 7.55%
Suncorp Bank -0.25% 18th Nov 7.58%
Westpac -0.25% 14th Nov 7.61%

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.

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Interest Calculator – Mortgage Calculators

Smart Search Finance has an interest calculator as well as many other mortgage calculators that calculate mortgage interest repayments. Below is a list and links to some of the home loan interest calculators we have on the website.

Mortgage Repayment CalculatorBasic mortgage calculator that calculates monthly mortgage repayments, interest payments and total costs. Monthly, fortnightly, weekly and interest only repayments options available.

Interest Only Mortgage CalculatorCalculates the interest only for weekly, fortnightly and monthly repayments. Includes interest only period and total amount paid during the interest only period.

There are many other mortgage calculators on the website

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Home Loan Interest Rates down 0.25%

Update: ANZ reduces its variable mortgage rates by 0.25% and in a surprise NAB reduces rates by 0.20%. Despite not passing on the full interest rate cut NAB still has the lowest standard variable rate amongst the big four banks.

As predicted interest rates were reduced by 0.25% yesterday giving borrowers a reprieve before Christmas. The rate reduction meet instant reaction from Westpac and Commonwealth Bank announcing that they will pass on the full rate cut. ANZ and NAB have not made announcements but we expect them to do the same. NAB may even go even further since they have been the most aggressive amongst the big four in keeping interest rates lower than its competitors.

The recent rate reduction means that the average mortgage holder will save approximately $700 to $800 annually on interest repayments. Fixed rates still remain below most variable rate loans and there are some good bargains out there. Some economists are predicting further cuts but it seems rates will be on hold until after Christmas unless a major economic catastophy happens.

To see indicative home, investment and commercial loan rates please visit our main site Smart Search Finance. These will be updated in the coming days as lenders pass on the rate cut.

Smart Search Finance has a network of  ASIC licenced Mortgage Brokers that are experts in home, investment and commercial loan solutions. All of our brokers deal with the major banks as well as many other lenders.  They can help you compare loans, negotiate better interest rates and find loans that you may never have considered.

Please complete the form below if you would like to speak to one of our brokers in your local area.

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How Mortgage Brokers Can Help…

More than ever mortgage brokers can significantly save you time finding a home or investment loan due to the new  regulatory requirements.

The new legislation requires that all lenders and brokers assess an applicant before they can recommend products. Often this requires supporting documentation that includes;  tax returns, pay slips, identification, other loan statements such as car, personal and home loans and other forms of documentation. Also, if there are two applicants then both have to be present at the interview.

If you were to shop around for a mortgage then this process can be very time consuming. Using a mortgage broker can take one lot of documentation, one interview and compare your requirements to hundreds of loans. It is really that simple.

Most brokers have at least up to 30 lenders to choose from that include the major banks, second tier banks as well as non bank lenders. Therefore, you are likely to get one of the most competitive loan solutions based on your finance needs.

If you are interested in speaking to a licensed and experienced mortgage broker in your local area please submit a mortgage quote.

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Fixed Rates to fall after RBA keeps interest rates on hold.

Interest rates remain on hold at 4.75% this month after the Reserve Bank of Australia made their decision yesterday afternoon.

Later that day Commonwealth bank further reduced its 1 and 3 year fixed rates from the previous month. It looks like other lenders are to follow as the weeks go by. I will keep you updated with the latest fixed rate offerings over the coming weeks otherwise contact one of our mortgage brokers.

Fixed rate falls also suggest that the variable rate is likely to drop in the coming months and some economists are predicting an interest rate reduction before Christmas. Economists predictions should be taken with a grain of salt. Short term predictions – 6 months of less – are often accurate but beyond 6 months making predictions is just like gambling.

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Westpac reduces fixed home loan rates again!

Only a day ago Westpac reduced its fixed rates by 0.40%. Today they reduced their fixed rates by a further 0.20% after the Commonwealth Bank announcement.

The competition is heating up.

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