Commonwealth Bank, Westpac and NABS Slash their Standard Variable Rates on 100 Mortgages

Australia reserve bank made its third cut in three months last week slashing 0.75 percent taking the cash rate to 5.25 percent. However it is reserve bank are expected to make further cuts due to the worsening economic conditions and to stop Australia falling into recession.

Australia’s largest mortgage lender The Commonwealth Bank was the first to cut its Standard Variable rate (SVR) by 0.58 percent to 7.74 percent, although many other banks are saying with the cost of their interbank lending so high it will not be possible to pass on the full cut to struggling homeowners.

Westpac and NAB both followed the lead of the Commonwealth Bank, but did not pass on the full cut, with Westpac cutting its rate by 0.65 percent and NAB just passing on 0.62 percent. Members Equity Bank have now announced that they will pass on the full benefit to its borrowers and has dropped its SVR by the full 0.75 percent.

Source: smh

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