Rate Freefall

The Age

Wednesday September 12, 2001

Lenders were quick to pass on last week's Reserve Bank interest cut to customers. Most announced that they would be passing on the full rate reduction.

Managing director of Aussie Home Loans John Symond says the latest fall takes home loan affordability back to levels experienced 30 years ago.

"I expect rates to remain at these low levels for the next two years," he says.

As we went to press, a number of lending institutions were still to release their new rate tables.

Top 10 standard variable loans**
Banks
Lender                  Product                         True rate
Lender rate     Total                   Ongoing         Exit fee
                        name                    AAPR*
upfront fees            fees
ING Bank                        Standard Variable               6.65%
6.65%           Nil             Nil     $100
ANZ Bank                Standard Variable               6.68%           6.57%
        $600            Nil     $90
Macquarie Bank          First Choice Variable   6.72%           6.65%
$385            Nil     $650
National Australia Bank Tailored Home Loan              6.74%           6.56%
        $600            $6/month        $100
Commonwealth Bank       Complete Home Loan      6.75%           6.57%
$450            $8/month        $100
Non-banks
Lender                  Product                         True rate
Lender rate     Total                   Ongoing         Exit fee
                        name                    AAPR*
upfront fees    fees
RESI Mortgage Corp.     Complete Home Loan      5.75%           5.70%
$270            Nil     Nil
Melbourne Credit Union  Freedom Home Loan       5.85%           5.85%
Nil             Nil     $430
HomePath                Standard Variable               5.90%           5.90%
        Nil             Nil     $100
Wizard Mortgage Corp.   Essentials Loan         6.08%           5.95%
$760            Nil     $285
LoanNET                         Standard Variable               6.15%
6.15%           Nil             Nil     Nil
* AAPR is the annualised percentage rate - the rate after extra fees and charges
 are taken into account.
** Rates are for loans of $75,000-$175,000 in Victoria for owner-occupied homes.
Compiled by Cannex for www.interestrate.com.au (September 6)

© 2001 The Age

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