Mortgage interest rate cuts have continued following the Reserve Bank of Australia’s (RBA) decision to trim the official cash rate by 25 basis points to 1.75% this week.
ING Direct made the decision to pass the RBA’s cash rate cut on in full to its home loan customers, reducing its standard variable interest rates on residential and commercial property loans by 25 basis points effective Friday 20 May.
The non-major says the rate reduction applies to both owner occupier and investor borrowers.
Suncorp Bank also announced it would reduce its standard variable home loan interest rates, however, the non-major has not passed on the rate cut onto consumers in full.
Effective Wednesday 25 May, Suncorp’s standard variable rate will be trimmed by 20 basis points for owner-occupiers and 15 basis points for investors. The lender's standard variable rate for business loans will be reduced by 10 basis points.
Suncorp banking and wealth CEO, John Nesbitt, pointed to rising funding costs for the reason behind its decision and urged consumers to focus on the “actual interest rate”.
“It’s a highly competitive market and amid the ongoing interest rate fluctuations, consumers are encouraged to focus on the actual interest rate deal they’re getting and the product that best suits their individual needs,” he said.
“While funding costs for banks have been rising in recent months, we acknowledge the need to provide stimulus to the economy and a boost to business and consumer confidence in this current environment.
“Maintaining our competitiveness in the market and balancing the needs of our customers, community and shareholders remains our priority.”
All four major banks have already announced home loan interest cuts this week
, with three out of the four majors passing on the RBA’s cash rate cut in full. ANZ was the only major bank not to pass the rate cut in full to home loan customers.
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