AMP, CUA slash interest rates

Font size :

Two Australian lenders cut interest rates on their mortgage products, defying the current upward trajectory in interest rates.

CUA, Australia's largest credit union reduced its standard variable rate by 0.25% to 6.37% effective 19 March 2010. This new rate is 0.64% lower than Westpac's 7.01% and follows the defiant move by AMP.

Earlier this week, AMP said it will slash interest rate on its introductory loan by 0.45% to 5.94% and further cut its basic variable mortgage rate by 0.22% to 6.27%. AMP has already slashed its basic variable rate by 0.10% as early as 21 February. The new rates, which come into effect 22 March 2010, will be among the most competitive in the market.

"AMP's decision provides more evidence that our investment in RMBS is enabling smaller lenders to lend at competitive mortgage rates," said Wayne Swan, federal treasurer of Australia. "This is helping to put more competitive pressure on the big banks and downward pressure on mortgage rates over time - a really important objective."

CUA's Chief Executive Officer Chris Whitehead said the cutting of mortgage interest rates was in response to recent comments by Treasury Secretary, Ken Henry, stating that competition in the Australian banking sector had diminished.
"We agree with the Treasury Secretary that the banking sector has become more concentrated over the last few years. There is a crying need for more competition and we are taking an active step in driving that competition," Whitehead said.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

CBA unveils new repayment simulator CBA unveils new repayment simulator

The simulator will show customers the differences between different types of repayments Read more

How to tell when a housing market is cooling How to tell when a housing market is cooling You need to check clearance rates, listings, and the price gap, among other factors ... Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Sep 26, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords