Hunter Quick On Rates Cut

Newcastle Herald

Friday February 9, 2001

HUNTER lenders have begun passing on Wednesday's half a percentage point interest rate cut.

Newcastle Permanent managing director Howard Frith said it was important that borrowers received home loan rate cuts as soon as possible.

The Perm's new rate of 7.35% would apply from today for new and current borrowers.

`The local economy has performed strongly in the past 12 months and this action by the Reserve Bank to cut official rates by half a percentage point will assist in maintaining a strong local economy,' Mr Frith said.

`Our policy is to pass on rate reductions as soon as possible and for existing borrowers this reduction means a saving of $32 a month on a $100,000 loan taken over 25 years.'

Maitland Mutual Building Society general manager Geoff Secombe said the society cut its variable rate from 8.05% to 7.55%.

The `honeymoon' first-year discount was still 6.45%.

A Greater Building Society spokesman said the Greater's 6.45% `honeymoon' rate for the first year of variable loans was a 1.5 percentage point discount on the usual 7.95% rate.

`We'll be looking at the rates at our next board meeting but in the meantime the honeymoon rate is as competitive as anything in the market,' he said.

Nova Credit Union acting general manager Ian McMurtrie said Nova already offered home loans at 7.55%.

A further rate cut would be considered at a board meeting in a fortnight.

© 2001 Newcastle Herald

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