Latest Interest Rate Cuts !!!
A small Queensland based lender (Heritage Building Society) has shamed the Big Banks by passing on the full 0.25% p.a. Interest Rate cut announced by the RBA last Tuesday (6/4/2009). The Big Banks have declared that they cannot afford to do the same, despite their multi-billion dollar profits, and choose to hide behind the excuse that the “Costs of Funds” have prevented them from passing on the 0.25% p.a. rate cut. Yet this was accomplished by their much smaller competitor – Heritage Building Society – who’s profits are tiny in comparison.
Many in the finance industry are questioning the Big Banks’ reasoning as the costs of funds have actually reduced since November 2008 and yet the Banks have managed to double their lending margins (i.e. profits) since the “Financial Crisis” began. Perhaps the Big Banks have simply taken a leaf out of the Petrol Industry’s book and are making the most of the confusion in the market place to increase their profit margins which no doubt will not be reduced once they finally acknowledge that the “Costs of Funds” are lower.
Well done to Heritage Building Society who have proven their “People First” slogan is more than just a clever marketing campaign. If only the Big Banks could be as motivated towards their clients as they appear to be towards their profits !!!
Below is a list interest rate cuts announced by the Banks / Lenders:
Bank/ Lender: Interest Rate Cut: Effective:
Heritage Building Society 0.25% p.a. 24/4/2009
St George 0.10% p.a. 17/4/2009
Suncorp 0.10% p.a. 20/4/2009
Homeside 0.10% p.a. 17/4/2009
Rams 0.10% p.a. 17/4/2009
Commonwealth 0.10% p.a. 17/4/2009
Westpac 0.10% p.a. 20/4/2009
ANZ 0.10% p.a. 17/4/2009
AMP Bank 0.10% p.a. 25/4/2009
Macquarie Bank 0.10% p.a. 27/4/2009
La Trobe 0.10% p.a. 1/5/2009
NAB NO REDUCTION TO INTEREST RATE
Bendigo Bank NO REDUCTION TO INTEREST RATE
Adelaide Bank NO REDUCTION TO INTEREST RATE
If you wish to review your Home Loan please call David on ph: (07) 5527 4744
