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GE Money yesterday announced that it will reduce its variable rate by 90 basis points for Wizard Home Loans as well as “most mortgages sold through third-party mortgage managers, brokers and other introducers”.
Its Specialist Options range, which includes its non-conforming mortgages, will see a reduction to rates of 75 basis points.
For existing loans the reduction will come into effect 30 December,while new Wizard customers will be eligible for the reduced rate from tomorrow 17 December.
GE Money said the differing amounts were “due to separate channels being managed with distinct risk profiles and strategic and financial objectives”.
It attributed the two week timeframe it took to reveal its reaction to the December rate cut to its reliance on the wholesale funding market and the very small influence the RBA cash rate has on its cost of funds.
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