Auswide Bank has slashed 20 points off its flagship 2-year variable interest rate, becoming the first big name to move in the next phase of the interest rate price war.
The drop takes their two-year variable to 2.29% for lower than 75% LVR and 2.39% for 75-90% LVR owner occupiers. Investors also saw 20 points shaved off the interest rate, with as low as 2.49% now on offer.
It represents the first major move from a big name lender after yesterday’s RBA cash rate decision, which saw the 2024 target for a rate rise abandoned.
Many lenders have been hiking their fixed term rates in anticipation of a cash rate increase before 2024. Auswide has kept their fixed in place, instead choosing to follow the likes of NAB and MyState in playing at the resurgent variable market.
“An additional discount of 0.20%p.a. will be applied to the applicable investment home loan annual percentage interest rate when the customer also applies at the same time for a new owner occupied home loan, or refinances an existing owner occupied home loan from another lender to Auswide Bank,” said head of third party Tracy Field.
“This discount offers a longer term benefit to customers as it is applied to the term of the loan rather than the upfront ‘cash-back’ offers we are seeing being offered by other lenders.”
