At its 5th May meeting, the RBA decided to lower the cash rate to 2 per cent. With interest rates continuing to fall, it’s an ideal time to review your loan. Talk to your bank if you’d like to look at what new options are available.
Three of the big four banks have kept some of the Reserve Bank’s 0.25 per cent rate cut to themselves, with both NAB and Commonwealth Bank reducing their standard variable mortgage rate by 0.2 per cent and Westpac by 0.22 per cent.
But Westpac and CBA have raised some of their deposit rates. Term deposit rates on CBA’s eight month and Westpac’s nine month term deposits have risen to 3.05 per cent. CBA also raised rates on its “GoalSaver” account to 3.05 per cent.
All three have passed on the full 0.25 per cent cut to business customers, a further signal that fierce competition for mortgages and regulator pressure to curb home lending to investors is causing the banks to shift their growth plans to business.
Three of the big four banks kept some of the RBA’s rate cut for themselves, with two raising deposit rates, NAB will cut its standard variable rate to 5.43 per cent, its lowest level in 37 years, on May 13.