Margin Lenders start to pass on rate cut
Commonwealth Securities, Colonial and JB Were are the first margin lenders to pass on variable rate cuts after the Reserve Bank cut interest rates on Wednesday. While Colonial and JB Were passed on the full 50 basis point cut, Commonwealth Securities cut its variable rate 46 basis points.
The last few months has seen significant falls in margin loan fixed rates in response to market expectations of future interest rate cuts. Twelve and thirteen month fixed rates (paid in advance) now average approximately 8.5%, down from around 9.5% six months ago.
JB Were has cut rates significantly and now has the lowest variable, twelve and thirteen month fixed rates in the market.