RBA cuts rates by 0.25 percentage points to 0.75%

MEDIA RELEASE 1 October 2019R

FIRST LENDER PASSES ON FULL RBA RATE CUT

The Reserve Bank of Australia board today cut the overnight cash rate to 0.75 per cent from 1.0 per cent.

Already the first lenders are announcing rate cuts. Sydney based online lender Athena has already passed on the full 0.25 per cent rate cut to owner occupiers and investors.

Athena’s new variable OO P&I rate is 2.84 per cent pa (comparison rate 2.80 per cent pa). For investors, Athena’s new rate is 3.24 per cent pa (comparison rate 3.20 per cent pa).

Home loan rates:

Prior to today’s rate cut, the lowest variable (OO, P&I) home loan rates on InfoChoice’s database of 145 institutions were:

Reduce Home Loans’ Rate Slasher 2.89% pa (comparison rate 2.90% pa).

Well Home Loans Well Balanced (Special) 2.97% pa (comparison rate 3.0% pa).

Mortgage House The Essentials Low Rate home loan 2.99% pa (comparison rate 3.02% pa)

Savings rates:

Prior to today’s rate cut, the highest at-call, ongoing savings account maximum rate generally available to Australian adults is 2.50% pa from Greater Bank Life Saver, MyState Bank’s Bonus Saver, the Up Saver account and Bank of Queensland’s Fast Track Saver.

“Some lenders will pass on all of this rate cut and some lenders will retain some or all of it,” said Vadim Taube, CEO of leading Australian financial comparison website InfoChoice.com.au.

“All the banks and other lenders are feeling the pressure of competition and low rates are squeezing their margins right now.

“The next few weeks are going to be great for comparing rates and finding a cheaper loan deal,” said Vadim Taube.

“For savers, there are still accounts and term deposits out there with rates well over the inflation rate.

“Beware of the savings accounts that only offer an introductory bonus rate for a few months.”

For more information on loan and savings rates, data and commentary, please contact:

Jason Bryce, Media Manager on 0428 777 727 jason.bryce@infochoice.com.au

For more comments, please contact: Vadim Taube, Chief Executive on 0403 580 794

Keep up to date with the latest RBA rates outlook at InfoChoice.

* Well Home Loans, comparison rate 2.96%, 2 year fixed, OO P&I.  InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.

** Comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan

***Excludes accounts with introductory honeymoon maximum bonus rates, notice saver accounts and accounts that are not generally available to all Australian residents

InfoChoice is a leading Australian comparison website for retail banking and personal finance products. We’ve been helping Aussies find great offers on credit cards, home loans, savings accounts, term deposits, personal loans and car loans for over 25 years. Our mission is to help consumers make an informed purchasing by bringing together the most comprehensive list of financial products on the market today.

At InfoChoice, we strive to be:

•           Comprehensive. We compare more than 3500 individual products from 145 providers within Australia to offer you the best value.

•           Informative. We know how important it is for you to crunch the numbers before buying. Our calculators help you understand the cost of different products over the long term and show you the potential savings.

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