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Rates slashed to revive markets and boost profits

People & Companies / Latest News

Australia / Sydney

Mar 12 2018

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The Commonwealth Bank of Australia and Westpac Group have reduced key property rates by up to 50 basis points, with  Australia and New Zealand Banking Group and National Australia Bank quickly following suit. 

The move was prompted by sluggish real estate markets and the increased loss of market share to smaller lenders.

The cuts - which mostly target controversial interest-only loans - come despite the Reserve Bank of Australia’s concerns about household debt, and is at odds with economists’ predictions of an impending interest rate rise.  

ANZ is reducing three and five-year fixed rates by 40 basis points on its investor interest-only Breakfree packages, with other interest-only rates are being cut by 25 and 30 basis points.

Principal and interest residential investment loans are being cut by between 10 and 20 basis points over one and five years.

NAB is reducing its five-year fixed rate for owner occupiers paying principal and interest by up to 50 basis points, and reducing two and three-year fixed rates for investor interest-only loans by 30 basis points.

Australia’s biggest lender CBA, was the first to move, reducing its two-year investor-only rate by 50 basis points to 4.34 per cent.

Westpac followed by cutting its two-year investor rate by 14 basis points.




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