The home loan lender putting Australia's major banks to shame.
Article by Mozo
With many Australians celebrating full rate cuts on home loans being passed on by a majority of the major banks, one lender, Greater Building Society, is stealing the show by passing on a 0.30 percent rate cut over and above the official 0.25 percent cut.
Over the last 12 months, Australia's Big Four banks have passed on an average of 0.98 percent in interest rate cuts to their standard variable home loan customers, in comparison to the Reserve Bank of Australia's (RBA) full 1.25 percent cut of the official cash rate.
Although there is now an air of relief that a majority of the major banks have indeed passed on a full rate cut this time around, many of Australia's online banks, direct banks, credit unions and building societies have passed on a full cut numerous times throughout the downward cycle and are offering interest rates well below many of the major banks.
And now Greater Building Society has gone one step further, making a move that should put many of the major banks to shame. In a press release today, Greater Building Society announced that a number of their home loans will fall by 0.30 percent.
"Despite having higher funding costs and lower profits than the major banks, we think it is right to help our customers out at this time by passing on more than the RBA," said Greater Building Society CEO Don Magin.
The cut would see customers on a 25 year variable or basic home loan of $300,000, paying up to $55 a month less on their loan.
The news should serve as a reminder to home loan holders, especially with interest rates at a historic low, to undertake regular checks that your bank has competitive interest rates and that you are not paying thousands more than necessary on your home loan. Find the best home loan interest rates here.
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