HUNTER lenders Newcastle Permanent and The Mutual Bank have announced they are passing on the Reserve Bank's interest rate cut in full.
The Reserve Bank announced on Tuesday it was cutting its official cash rate by 0.25 percentage points to a new record low of 0.5 per cent to ease the financial fallout of the coronavirus outbreak.
Both Hunter organisations said they would pass on the 0.25 per cent cut to all standard variable home loan interest rate customers.
"This interest rate reduction will save $59 a month or $708 a year for a customer paying off a $400,000 home loan over 30 years. The change will be effective from 24 March 2020," Newcastle Permanent chief executive Bernadette Inglis said. "This reduction means we've lowered our variable home loan interest rates by 0.88% p.a. since June 2019, more than any major bank and the majority of our mutual peers.
"Having passed on this reduction in full, we continue to face the ongoing challenge of a cash rate nearing zero. We will continue to balance the needs of all of our customers as well as ensuring the long term sustainability of Newcastle Permanent."
The Mutual Bank's chief executive, Geoff Seccombe said the cuts provided a "great opportunity for first home buyers looking to enter the property market".
"The potential for further RBA cash rate reductions appear likely and the challenge for The Mutual Bank is to maintain the balance for all our members, particularly those who rely on the income from their savings," Mr Seccombe said.
Greater Bank had yet to make an announcement as of Tuesday evening.
