No rate cut for GE’s mortgage managers

Many smaller mortgage providers such as Easy Living Finance who are funded by GE Money Australia will not be able to pass on any of the one per cent official interest rate cut to their borrowers. GE has sent an email to mortgage managers saying that despite being a AAA rated lender, the company was not immune to the global increase in the cost of funds and would be holding back rate cuts to borrowers. GE has passed on 0.8 per cent in rate cuts to customers of its subsidiary mortgage provider Wizard Home Loans. Tony Harris, director of Easy Living Finance said the move by GE would further erode confidence in the non-bank sector. “There is almost no competition against the banks now,” he said.

Source: The Australian Financial Review