Lenders move quickly to cut home loan rates

Competition in the home lending market has forced lenders to move quickly to cut variable home loan
rates in response to the Reserve Bank's move to cut official interest rates today.

Westpac, NAB, Commonwealth, ANZ, Aussie HL, RAMS, Wizard and Resi Home Loans have all announced within hours they will pass on the full half-percent cut in official interest rates to their variable rate borrowers.

Standard variable rates will come down from around 8 per cent to around the 7.5 per cent mark.

More importantly, the lenders have committed to making these cuts effective within a week or so to new and existing borrowers, a vast improvement on previous years.

BankChoice records show that just five years ago, banks were taking up to six weeks to pass on official rate cuts.