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By: Jessica Darnbrough
A revived market for Residential Mortgage Backed Securities (RMBS) has helped AMP slash the interest rates on its entry level home loan products.
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The bank, which earlier this month joined the big four in raising its standard variable rate by 25 basis points, yesterday announced it would drop 22 basis points off its basic variable home loan, taking it to 6.27 per cent.
AMP will also slash 45 basis points off its introductory variable mortgage, taking it to 5.94 per cent.
The new rates, which are effective from today, will apply to all new customers.
The bank’s chief executive officer Craig Dunn said AMP was able to cut is mortgage rates, in part, due to the government’s investment in the Australian securitisation market.
The new rates make AMP one of the most competitive lenders in the field, with NAB’s standard variable rate sitting at 6.74 per cent, ANZ’s is 6.91 per cent, Westpac’s is 7.01 per cent and the Commonwealth Bank’s is 6.86 per cent.
