Online lenders UBank, Athena, Homestar and FreedomLend are on top of the rate cut nice list this month, moving with lightning speed to announce they are passing through the Reserve Bank's October rate cut in full.
The Commonwealth Bank became the first of Australia’s big four banks to respond to Tuesday’s RBA rate cut after making an announcement last night that it would cut 0.13% off variable home loan interest rates for its owner occupier borrowers.
UBank home loan customers were treated to some good news last night. Not too long after the RBA cut official interest rates by 0.25%, the online bank announced it will be doing the same across its range of variable rate home loans.
It’s official - Australia’s big four banks have now weighed in on the October RBA decision by announcing their respective cuts to variable home loan rate offers.
The RBA has cut rates for the third time this year and once again the big banks are failing to pass the full cut through to mortgage holders. What's more, the big 4 banks’ rate cut tactics have seen them pocket a $4.7 billion windfall since 2016, research by Mozo reveals.
The RBA has shaved another 0.25% off the cash rate - the third time this year it’s done so - and all attention has turned to home loan lenders to see how they’ll respond. Among the big four banks, CommBank and NAB have already announced cuts of 0.13% and 0.15%, respectively.
It’s spring property season and if you are one of the many Aussies trying to get a foothold on the property ladder, then right now you might be scrutinising your finances and weighing up your options. Of course, in the current housing market you might not be able to bag your dream house straightaway, especially if you’re a Sydney-sider or a Melbournian.
If we had to pick a home loan provider MVP, Homestar would be a pretty strong contender. Not too long after the RBA cut official interest rates by 0.25%, the online lender announced it would be cutting home loan rates in kind — the third time this year it’s passed on the full cut.
Competition in the home loans market is heating up again as a growing wave of online lenders cut rates below 3.00%, forcing the big banks to fight back or risk losing borrowers to cheaper lenders.
Just in time for the Spring property season, we’re seeing a new trend of smaller lenders on a mission to take on the big banks in the investment loan space with a number of investor interest rate drops.