Big banks offer big discounts for big loans

People who borrow more than $250,000 can secure at least 0.7 per cent off the interest rate on a standard variable mortgage and 0.8 per cent if they opt for a $500,000 loan.

That is cutting the current headline rate on a home loan from 7.8 per cent to 7 per cent as the banks engage in a tit-for-tat battle to bolster their mortgage books at a time of subdued credit growth.

As well as increased discounts, major lenders have loosened the limits on the percentages of the total amounts they are prepared to advance with a deposit.

Source: Sydney Morning Herald