IMB has cut its variable Budget Home Loan interest rate by 20 basis points to 4.98% (comparison rate 5.15%).

The new rate applies for loans greater than 90% of the property value.

Your Mortgage’s home loan calculator shows the reduction will save first home owners about $33 a month for a loan of $300,000, on a loan term of 20 years, compared to the previous rate.

The interest rate for Variable Budget Home Loans less than 90% of property value has been reduced by 10 basis points to 4.88% (comparison rate 5.05%).