Loans.com.au to pass on full rate cut
Market leading online lender loans.com.au will pass on the full 0.25 percent rate cut to existing customers following the RBA’s announcement on Tuesday.
A number of loans.com.au’s customers are on a rate-linked loan product, which means the Reserve’s drop was passed on to them immediately.
“Many of our customers felt the benefit of the full 25 basis points drop straight away,” said Mr Kim Cannon, Managing Director of Firstmac, the financial powerhouse behind loans.com.au.
“For those who didn’t get the rate cut automatically, we are passing on the full rate cut to ensure we are still at the pointy end of the market.”
For a mortgage of $300,000, this will lower monthly repayments by around $44 a month, potentially saving borrowers $15,900 over the life of the loan.
The rate is 1.42 percent p.a lower than the standard variable home loan rate announced by Commonwealth Bank in the wake of the RBA cut, which means a loans.com.au customer with a $300,000 home loan is approximately $3,112 a year better off, or $93,380 over the life of the loan.
Mr Cannon said loans.com.au customers had come to expect market leadership from the lender.
“Loans.com.au is very happy to be recognised as offering the cheapest home loan and our customers expect nothing less than the full rate cut to be passed on,” he said.
“They already had one of the most competitive variable interest rates in Australia and passing on the RBA cut in full will help them stay in top spot.”