St George cuts variable and fixed loan rates

St.George Bank today announced that following the RBA decision on 4 November it was lowering its standard variable home loan interest rates by 0.62% p.a. to 7.74% p.a., effective 14 November 2008 for new and existing customers. Les Matheson, Group Executive, St.George Retail Bank, said “Due to the continued impacts of the global financial crisis, financial institutions are facing significantly higher costs in both the short and long term wholesale funding markets. These much higher funding costs overall mean that we are unable to pass on the full RBA decrease of 0.75%, however over the last nine weeks and including today’s reduction, our rates have come down by a total of 1.93% p.a., which will come as welcome relief for many people in the lead up to Christmas,” Les said.
“This move reinforces St.George’s commitment to remain highly competitive in the home loan market,” he continued.
St.George’s 0.62% p.a. rate reduction equates to a saving of approximately $118 per month in repayments on an average size loan of $250,000 over a 30 year loan term.
St.George today also announced it was cutting its fixed home loan interest rates. Effective Monday 10 November, St.George has reduced fixed rates by up to 0.25%p.a. For example, eligible Advantage Package customers can take advantage either a 1, 2 or 3 Year Fixed Rate of 6.99% p.a., which is significantly lower than the standard variable rate.

Source: St George