First lender passes on full RBA rate cut
Non-bank lender announces amazing new super-low comparison rate
The Reserve Bank of Australia has just announced an historic cut in the official cash rate (OCR) from 1.50 per cent p.a. to just 1.25 per cent.
This is the first rate move by the central bank in almost three years.
For borrowers, the wait is now on to see if their bank will pass on the rate cut to retail customers and how much of the 0.25 percentage points they might see cut from their loan rate.
The first Australian home loan provider to announce they are cutting their home loan rates by a full 0.25 percentage points, following the RBA’s cut this afternoon is Athena Home Loans.**
The Sydney based online non-bank lender has announced a new headline variable rate for owner-occupiers paying principal and interest of 3.34 per cent p.a. (comparison rate 3.30 per cent).
For interest only loans, Athena is charging owner-occupiers 3.84 per cent (comparison rate 3.49 per cent).
Athena’s Investor Principal and Interest variable rate loans are now priced at 3.74 per cent (comparison rate 3.70 per cent) and the interest-only product is charging 3.84 per cent (comparison rate 3.74 per cent).
“Athena is passing on the full RBA rate cut to borrowers immediately,” Athena chief executive officer Nathan Walsh told InfoChoice.com.au.
“Borrowers deserve better than the lags by big banks in passing on the benefit.
“Historically, many home lenders have been more than two weeks late in passing on rate cuts – costing Australians more than $114 million in excess interest,” said Mr Walsh.
Athena is a new entrant to the home loan market in 2019 and has a philosophy of charging no fees and paying a loyalty bonus.
“Athena Home Loans is on a mission to save Aussies a whole lot of money, by helping them pass on their home loan faster,” said Nathan Walsh.
“We are already seeing the power of Athena to change lives – with customers switching to Athena from typical big bank rates saving tens of thousands over the life of the loan.”
InfoChoice chief executive Vadim Taube said Athena’s rates make it one of the most competitive lenders in the market right now.
“Athena’s comparison rates are actually lower than their headline home loan rates, reflecting their no fee policy and cash back loyalty bonus.”
Compare variable rate home loans from all of Australia’s major banks, credit unions and non-bank lenders here.
** Athena Mortgage Pty Ltd is a sponsored listing partner of InfoChoice.com.au