Banks fall in line with rate cut
(2 November 2011 – Australia) Westpac and Commonwealth Bank (CBA) were the first to cut standard variable mortgage rates after the Reserve Bank of Australia’s rate cut.
The Bank of Queensland (BoQ) quickly followed suit by passing on the cut in full. The bank’s new chief executive Stuart Grimshaw marked his first day in the job by saying BoQ's decision was the 'right thing to do'.
"A lot of people around Australia are struggling and, with Christmas around the corner, offering our customers this rate relief is the right thing to do," said Mr Grimshaw.
Westpac's cut sees its basic home loan product fall to 7.61 percent, from 7.86 percent, which was one of the highest rates in the industry before today's decision.
The reduction will save Westpac customers who have a loan of A$250,000 about A$41 a month in home loan repayments.
Commonwealth's main standard variable interest is to fall from 7.81 percent to 7.56 percent and will ensure that competition at the cheaper end of the market will be maintained with its decision to reduce the price of its recently-launched no fee mortgage product by the same amount.
That is to be lowered to from 7.11 percent to 6.86 percent. The new rates will apply from this Friday.
"A lot of people around Australia are struggling and, with Christmas around the corner, offering our customers this rate relief is the right thing to do," said Mr Grimshaw.
Westpac's cut sees its basic home loan product fall to 7.61 percent, from 7.86 percent, which was one of the highest rates in the industry before today's decision.
The reduction will save Westpac customers who have a loan of A$250,000 about A$41 a month in home loan repayments.
Commonwealth's main standard variable interest is to fall from 7.81 percent to 7.56 percent and will ensure that competition at the cheaper end of the market will be maintained with its decision to reduce the price of its recently-launched no fee mortgage product by the same amount.
That is to be lowered to from 7.11 percent to 6.86 percent. The new rates will apply from this Friday.
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