Mutual cuts rates by up to 31bps

Teachers Mutual Bank and its subsidiaries have introduced a rate cut for certain owner-occupier home loans, two weeks after hiking interest-only rates by 50 basis points.

The cuts apply only to new owner-occupier principal and interest lending and are effective today (17 August).

Loans of $250,000 and above where the loan-to-value ratio (LVR) is at 80 per cent will be cut by between 18 and 31 basis points to a new rate of 3.89 per cent per annum (p.a.).

Additionally, new fixed rate principal and interest lending will have rates cut by between 25 and 31 basis points.

The new rates are 3.79 per cent p.a., 3.84 per cent p.a. and 3.99 per cent p.a. for loans with respective one, two and three-year terms.

The moves follow a spate of rate cuts at CBA last week over both principal and interest and interest-only lending.

Heritage Bank also announced rate changes earlier this week, pushing interest-only rates up by 0.40 per cent p.a.

Two weeks ago, Teachers Mutual Bank and its subsidiaries also pushed interest-only rates up by 50 basis points.

The changes come at a time of regular rate shifting as banks push and pull rates to stay in line with regulatory mandates.

[Related: CBA’s new IO lending over 30%]

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Lucy Dean

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