Non-major banks unveil new rates

By Gerv Tacadena

They followed the two major banks that announced a slew of rate changes last week

Two banks have announced changes to their mortgage rates ahead of the Reserve Bank of Australia's first monetary policy decision next week.

Bank Australia joined the sub-3% trend, cutting the rate of its Basic Home Loan product to 2.95%. This rate applies to borrowers applying for a minimum loan amount of $150,000 and a loan-to-value (LVR) ratio of 90% and below.

Commonwealth Bank-owned Bankwest also announced rate cuts for its fixed home-loan offers for both owner-occupiers and investors.

The table below shows the changes to Bankwest's fixed rates:

Loan Type

Terms

Starting Rate

Owner-occupier

Principal & Interest

2.93%

Interest-Only

3.79%

Investor

Principal & Interest

3.29%

Interest-Only

3.49%

Bank Australia and Bankwest’s announcements came after two major banks, ANZ and Westpac, made changes to their offered rates.

ANZ has cut both its home-loan and deposit rates. For owner-occupiers paying principal and interest, the variable rate was reduced by up to 20 basis points to 3.24% for LVRs below 80%.

On the other hand, Westpac decided to lower its fixed rates for both principal and interest (P&I) and interest-only (IO) investor loans.

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