The latest official reduction in the Reserve Bank of Australia (RBA) reached a new record (1%) as some banks chose not to fully apply this reduction.
The Commonwealth Bank (CommBank), National Australia Bank (NAB) and Westpac banks only partially passed down the rate on their borrowing clients, while the Australian and New Zealand banking group (ANZ) is the only one to confirm this reduction. it would pass on the rate reduction in full.
CommBank said it would reduce interest rates on home loans, but not all customers would see the discount fully passed on. Homeowners and investors who repay standard variable rate home loans in principal and interest would benefit from a 0.19% reduction in the rate, while those benefiting from interest-only loans would benefit from the full reduction. 0.25%. The rate changes are expected to come into effect on July 23.
"As official interest rates are already at record levels, we are seeking to balance the benefits and costs of further interest rate reductions between our $ 1.6 million loan. euros and more than six million customers saved, "said the head of the retail bank CommBank Group. Angus Sullivan services.
NAB also announced a 0.19% reduction in variable interest on home loans. The costs and competitive pressures associated with these changes have justified the bank's decision not to pass on the full rate reduction, according to NAB Customer Relations Manager Mike Baird, who is responsible for personal banking.
"The difference between what we charge and the cost of financing a mortgage remains under pressure and, even though the circumstances of each RBA cash-flow decision vary and have some influence on the cost borrowing, this is not the case. only factor of funding cost for NAB, "said Baird.
Westpac announced that it would lower the variable interest rates by 0.20% for homeowners and by 0.30% for investors paying only interest, as of July 16th. The decision reflected the "pressure of the decline in the liquidity rate," said in a statement the director of Westpac, division of consumption, David Lindberg,
.
While other large banks only partially reduced rates, ANZ said it would fully pass on the rate cuts, after being criticized for transferring only 0.18 percent of the reduction. from RBA in June. The bank would lower all floating rates for loans to homeowners and investors, effective July 12.
"Before making this decision, we examined a number of factors, including business performance, market conditions and the impact on our customers. Overall, we believe this is the right decision for our customers in housing loans and for our business, "said Mark Hand, ANZ Retail Manager.
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