Lenders continue to cut rates

Four more lenders have followed Yellow Brick Road in announcing reductions to their variable mortgage rates.

Bank of Sydney has reduced the variable rate for new owner-occupier customers on its Expect More Home Loan by 27 basis points to 3.88 per cent, while the bank’s three-year fixed rate for owner-occupiers has been reduced by 10 basis points to 3.88 per cent.

Effective on 30 May for new and existing loans, Bendigo Bank will reduce its variable rate for owner-occupiers by 20 basis points to 5.48 per cent. The regional lender will also reduce its variable rate for investors by 15 basis points to 5.76 per cent.

AMP said it will reduce the standard variable rate (SVR) across its home loan products by 20 basis points, with its owner-occupier rate to start at 5.53 per cent (with a 5.70 per cent comparison rate) and its investor rate to start at 5.82 per cent (with a 5.99 per cent comparison rate).

The bank’s Essential Home Loan variable rate will be reduced to 3.88 per cent (with a 3.90 per cent comparison rate) for all new owner-occupier customers, while its Professional Package variable rate for new owner-occupier term loans of $75,000 and above will drop to 3.95 per cent (with a 4.31 per cent comparison rate).

AMP’s SuperEdge variable rate for new SMSF residential property loans will be reduced to 4.37 per cent (with a 4.41 per cent comparison rate). AMP’s new rates will be made effective on 23 May.

Effective on 16 May, ME has lowered the standard variable rate for its home loan products by five basis points, with the bank’s Flexible Home Loan to start at 5.03 per cent (with a 5.05 per cent comparison rate).

ME has also reduced its three-year fixed home loan rates for owner-occupiers and investors by 25 points and 20 points respectively, with the owner-occupier rate to start at 4.04 per cent (with a 4.82 per cent comparison rate), and the investor rate to start at 4.09 per cent (with a 5.20 per cent comparison rate).

Yellow Brick Road (YBR) announced yesterday that it is passing on the full 25-basis-point cut from the Reserve Bank on its Empower owner-occupier product range and its Rate Smasher Home Loan, effective immediately for new customers and on 25 May for existing customers.

The changes mean the variable rate for YBR’s Rate Smasher Home Loan will start at 3.82 per cent with a 3.82 per cent comparison rate – the lowest variable comparison rate the group has ever offered – while its Empower Home Loan will start at 4.00 per cent (with a 4.00 per cent comparison rate).

[Related: More lenders move on rates]

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