Bendigo Bank Interest Rate Cut
Bendigo Bank have cut their standard variable home loan rate by 1.00% following the Reserve Bank's decision to cut official rates by the same.
The RBA moved last Tuesday to cut official rates in an attempt to boost the local economy and prevent a recession in Australia. Most lenders immediately cut home loan rates, but not all passed on the full amount.
Home Loan Rates
The Commonwealth Bank, National Australia Bank and Aussie Home Loans are the other lenders who passed on the full amount, while ANZ, Bankwest and St George cut rates by between 80 and 95 basis points.
Bendigo's new rate of 6.80% p.a. will become effective from 12 December 2008.
The 100 basis point reduction also applies to home loans written through the Adelaide Bank branch network.
Market Trends
Home-owners can use the cuts to pay off their mortgage sooner by keeping repayments the same. The Mortgage and Finance Association of Australia says home owners that continue making higher loan repayments will pay off their homes sooner by taking advantage of low interest rates. By paying off the loan at the higher amount, borrowers reduce the debt much quicker.
With these successive interest rate cuts, falls in property prices and easing petrol prices, enquiries from first-home buyers have soared in recent weeks. And following the Federal government's decision to increase the First-home Buyer's Grant, home loan approvals for first home buyers have risen considerably.
Bendigo Bank
Bendigo and Adelaide Bank Ltd was formed in November 2007 as the result of a merger of Bendigo Bank and Adelaide Bank. The bank’s head office is in Bendigo, Victoria. Bendigo provides mortgages to a large number of brokers and mortgage managers, and Adelaide Portfolio lending, which funds aged care providers and third party credit provision.
Bendigo's standard variable home loan rate, along with most other lenders, had reached 9.65% in July of this year, but with several rate cuts since September, home loan rates are falling below 7% and offering some relief to home owners, as well as potential home buyers who were put off by high interest rates. New data out this week has shown that some home owners are spending more than 40 per cent of their income on mortgage repayments. Mortgage stress is usually defined at paying more than 30 per cent of your income on repayments, so this latest rate cut may go some way to helping home owners who have been feeling financially stretched recently.
Credit Card Interest Rates
Consumers are now waiting to see if credit card interest rates will fall also, with some customers paying interest rates as high as 20 per cent. Data from the Reserve Bank shows Australians owe nearly $45 billion on their credit cards.
Want to know the latest home loan interest rates? Looking for a competitive home loan? Talk to a Local Perth Mortgage Broker to find out how you can get a great mortgage. Through us, you can access a panel of over 45 lenders and receive the latest interest rates. We also offer assistance with home loan applications and coordinating settlement.
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