Lenders are cutting variable rates, but when??

The RBA decision to cut the cash rate by .25% to 2.75% on Tuesday marks the first time since records began 53 years ago that the cash rate has dropped below 3%. It also marks the fifth time the cash rate has been cut in the last 12 months. The interest rate cut is great news for those people with mortgages, as it will represent a $550 a year saving for someone with a $300,000 mortgage on a 25 year term, which would make a huge difference as many living expenses continue to rise. Lenders have been quick to move and many have already announced that they will pass on the rate cut in full. Below is a list of the ones that have already announced that they are passing it on and when it takes effect. This is a clear representation of the fact that lenders are keen to attract more borrowers, particularly as the real estate market is beginning to show signs of life. One group of people that will not be welcoming a rate cut today are people with money in savings accounts and term deposits, as you can expect the full rate cut to be passed on which will represent a hit to the interest they would have been earning on their deposits. The great news for Australian's is that there is still a lot of competition in the marketplace for both home loans and deposits which can result in good deals for consumers. So why not start comparing what other products are in our home loan category. Lender Rate Cut New Standard Variable Rate Effective RBA -0.25 2.75 8/05/2013 ADCU -0.25 5.84 31/05/2013 Adelaide Bank -0.25 5.56 27/05/2013 AMO -0.25 5.60 17/05/2013 AMP -0.25 6.25 24/05/2013 ANZ -0.27 6.13 17/05/2013 Arab Bank -0.25 6.75 20/05/2013 Aussie -0.25 6.23 15/05/2013 B&E Personal Banking -0.25 6.14 16/05/2013 Bank of Melbourne -0.25 6.15 17/05/2013 Bank of Queensland -0.25 6.26 24/05/2013 Bank of Sydney -0.25 6.63 3/06/2013 bankmecu -0.25 5.74 15/05/2013 BankSA -0.25 6.22 20/05/2013 Bankstown City Credit Union -0.20 5.67 1/06/2013 Bankwest -0.25 6.14 20/05/2013 Bendigo Bank -0.25 6.26 27/05/2013 Big Sky Building Society -0.25 6.10 20/05/2013 Cairns Penny Savings & Loans -0.25 5.75 21/05/2013 Catalyst Mutual -0.30 5.95 22/05/2013 Citibank -0.25 6.44 20/05/2013 Commonwealth Bank -0.25 6.15 13/05/2013 Community CPS Australia -0.25 6.04 21/05/2013 Community First Credit Union -0.22 6.12 1/06/2013 Companion Credit Union -0.25 6.04 21/05/2013 Comtax Credit Union -0.25 5.47 16/05/2013 CUA -0.25 5.60 20/05/2013 Defence Bank -0.25 5.89 29/05/2013 Delphi Bank -0.25 6.15 4/06/2013 Easy Street Financial Services -0.22 5.51 1/06/2013 ecu Australia -0.25 6.05 eMoney -0.25 5.20 17/05/2013 Encompass Credit Union -0.25 5.80 1/06/2013 FCCS Credit Union -0.25 6.39 20/05/2013 Gateway Credit Union -0.25 5.74 16/05/2013 Goldfields Money -0.25 5.42 27/05/2013 Greater Building Society -0.30 5.75 9/05/2013 Heritage Bank -0.25 5.89 16/05/2013 homeloanHQ -0.25 5.06 13/05/2013 Homeloans Ltd -0.25 5.49 17/05/2013 HomeStar -0.25 5.48 20/05/2013 Horizon Credit Union -0.25 6.04 16/05/2013 HSBC -0.25 6.20 24/05/2013 Hunter United Credit Union -0.25 5.95 1/06/2013 Illawarra Credit Union -0.30 5.95 22/05/2013 IMB -0.25 5.91 20/05/2013 iMortgage -0.25 5.19 16/05/2013 ING DIRECT -0.25 5.59 17/05/2013 Intech Credit Union -0.25 5.93 13/05/2013 Liberty Financial -0.25 5.54 20/05/2013 LJ Hooker Finance -0.25 5.30 17/05/2013 loans.com.au -0.24 4.75 8/05/2013 Macquarie Bank -0.25 6.20 9/05/2013 Macquarie Credit Union -0.20 5.73 22/05/2013 MCU Ltd -0.20 6.40 3/06/2013 ME Bank -0.25 5.63 28/05/2013 Mortgage House -0.25 5.41 15/05/2013 My Mortgage Freedom -0.25 4.98 16/05/2013 MyRate.com.au -0.25 5.42 17/05/2013 MyState Financial -0.25 6.14 20/05/2013 NAB -0.25 6.13 13/05/2013 Nationwide Mortgage -0.25 5.32 10/05/2013 Newcastle Permanent Building Society -0.25 5.80 13/05/2013 P&N Bank -0.25 5.95 21/05/2013 Pacific Mortgage Group -0.25 5.02 10/05/2013 People's Choice Credit Union -0.25 6.12 24/05/2013 Pioneer Direct -0.25 5.46 30/05/2013 Police Bank -0.20 5.84 13/05/2013 Police Credit -0.25 5.74 8/05/2013 Qantas Credit Union -0.25 5.28 17/05/2013 QT Mutual Bank -0.25 6.07 21/05/2013 Quay Credit Union -0.25 5.44 14/05/2013 Queensland Police Credit Union -0.25 5.89 20/05/2013 Queensland Professional Credit Union -0.25 5.55 1/06/2013 Queenslanders Credit Union -0.25 5.48 14/05/2013 Railways Credit Union -0.25 5.64 1/06/2013 RAMS -0.25 6.10 13/05/2013 Resi Home Loans -0.25 6.02 10/05/2013 SCU -0.22 6.02 17/05/2013 Select Credit Union -0.25 5.54 1/06/2013 SERVICE ONE Members Banking -0.25 6.00 20/05/2013 SGE Credit Union -0.25 6.12 10/05/2013 St.George -0.25 6.24 20/05/2013 State Custodians Mortgage Company -0.25 5.09 9/05/2013 Suncorp Bank -0.25 6.24 24/05/2013 Teachers Mutual Bank -0.25 5.93 20/05/2013 Transcomm Credit Union -0.20 6.09 1/06/2013 Transport Mutual Credit Union -0.20 6.01 31/05/2013 UBank -0.25 5.12 17/05/2013 Unicredit -0.15 5.40 20/05/2013 United Community -0.25 6.04 21/05/2013 Victoria Teachers Mutual Bank -0.25 5.89 17/05/2013 Westpac -0.25 6.26 20/05/2013 Yellow Brick Road -0.25 5.29 9/05/2013 Source: www.infochoice.com.au Information current as at 5 June 2013

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