BankSA today announced it would pass on the cut to official interest rates to its home loan customers.
The bank will reduce its standard variable home loan rate by 0.25% per annum to 5.72% per annum, effective from 20 February 2015.
The cut will save about $560 per year for customers with an average mortgage of $300,000.
BankSA Chief Executive Nick Reade said the reduction in the standard variable rate would bring a “much needed financial boost to home owners”.
“The New Year traditionally represents a challenging time for families as many struggle to recover from Christmas spending, so we’re pleased that today’s announcement could provide our customers with some welcome relief,” he said.
Earlier today, Westpac delivered a bigger interest rate cut than the Reserve Bank, lowering its standard variable mortgage rate by 0.28 of a percentage point.
The bank’s mortgage rate will be 5.70 per cent a year from February 20.
The reduction will save homeowners $52 a month, or $624 a year, in repayments on an average $300,000 mortgage, the bank says.
The Commonwealth Bank passed on the RBA’s cut in full, lowering its standard variable mortgage rate a quarter of a percentage point to 5.65 per cent.
The bank also lowered its five-year fixed mortgage rate a third of a percentage point to 4.69 per cent and its three-year fixed mortgage rates a quarter of a percentage point, also to 4.69 per cent.
CBA was the first of the big four banks to lower its rates following the RBA’s decision to cut the cash rate a quarter of a percentage point to 2.25 per cent.
– with AAP
