MA Money implements full 0.25% rate cut

In response to the Reserve Bank’s recent policy adjustment, MA Money has announced a reduction in variable interest rates by 0.25% for all its lending products.

This change, effective from March 17, applies to both new and existing customers.

Potential savings for home buyers

While a quarter per cent drop might seem minor, the impact on a mortgage over time can be substantial.

For instance, a borrower with a $600,000 loan could see monthly repayments decrease by approximately $100, assuming a 30-year loan term. This reduction can significantly ease the financial burden over the lifetime of the loan.

This rate cut by MA Money aligns with similar reductions recently made by CBA, NAB, AMP Bank, and Pepper Money.

Enhanced borrowing capacity and refinancing opportunities

MA Money said the rate decrease brings several advantages for borrowers:

• Increased borrowing capacity: The reduction in monthly payments could allow some customers to qualify for larger loans while still meeting lenders' serviceability criteria.
• Easier refinancing: Those previously constrained by tight serviceability assessments might now find refinancing more feasible, opening up paths to better mortgage terms.
• Improved affordability: Lower monthly payments mean borrowers can enjoy greater disposable income, aiding in the management of other living expenses alongside mortgage commitments.

Brokers gain from rate reduction

For mortgage brokers, the reduction in interest rates by MA Money presents a prime opportunity to engage with clients considering refinancing or exploring new lending options.

MA Money’s policy of not relying on traditional credit scoring and its flexible assessment approach allow brokers to offer personalised solutions that meet individual borrower needs.

MA Money’s BDMs are prepared to assist brokers in exploring how the new rates can benefit their clients. They are available for consultations and to help brokers navigate through various client scenarios in light of these changes.

See the MA Money announcement here.