Firstmac announces rate changes

Non-bank lender Firstmac has announced it will pass on the Reserve Bank’s 25-basis-point cash-rate cut to its customers.

Effective 23 May, the reduction will apply to all of Firstmac’s variable rate home loans both for owner-occupiers and investors.

This will take the lender’s standard variable rate to 4.41 per cent (with a 4.44 per cent comparison rate) for owner-occupier loans with an LVR of up to 80 per cent, and to 4.66 per cent (with a 4.69 per cent comparison rate) for investor loans with an LVR of up to 80 per cent.

Firstmac managing director Kim Cannon said Firstmac is pleased to be in the minority of lenders that promptly committed to pass on the full benefit to borrowers.

“It is disappointing that nearly two thirds of Australian lenders have either failed to pass on last week’s RBA rate cut in full or have not yet announced their response, leaving mortgage brokers in an awkward situation with their customers,” he said.

“There is plenty of competition in the home loan market, and bank customers can see they could be saving money on interest if they chose another lender as well as getting straight answers about how much they will be paying.”

[Related: Lenders continue to cut rates]

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