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One Australian lender has announced a 20 basis point reduction to all variable-rate home loans for new business.
Adelaide Bank announced the rate cut today and it is effective immediately. The bank will further waive ongoing monthly fees for its popular SmartFit home loan.
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"Our fully-featured SmartFit variable-rate home loan, with 100 per cent offset is now 4.44 per cent with no ongoing monthly fees for new customers with an LVR of less than 90 per cent,” Damian Percy, general manager at Adelaide Bank said.
“It’s a hugely competitive mortgage market at the moment, which is great news for borrowers and Adelaide Bank have recognised that we need to move closer to the front of the field,” Mr Percy said.
“The pencils have been sharpened and I can further announce that we are waiving the ongoing monthly fees on our SmartFit product for new business - representing a further saving of $180 per year for customers in ongoing administration fees.”
The December 2014 quarter edition of the Adelaide Bank/REIA housing affordability report found that the Australian weighted average median house price is now $645,000.
New customers borrowing $580,000 (90 per cent of this amount) would save around $70 per month with the fully-featured SmartFit variable-rate home loan, with 100 per cent offset, Mr Percy said.
“The report also shows that the average loan size to first home buyers increased by 3.5 per cent over the December quarter to $327,767. A 20 basis point reduction to the SmartFit product equates to a saving of almost $40 per month on a loan this size,” he said.
[Related: Regional bank reduces rates]
