As of 25 June, another non-major is to join the rank of lenders opting to pass the totality of the RBA’s cash rate cut through to borrowers – although a lender in its group will only be cutting rates by 0.22%.
Bank of Queensland (BOQ) will reduce all variable home loan interest rates by 0.25% per annum, with the exception of those linked to the Clear Path Owner Occupier P&I rate, which will be reduced by 0.15%.
“We are pleased to pass on the RBA’s rate cut in full to the majority of our BOQ customers. We believe the responsible decision at this moment in time is to get behind our home lending customers and ensure they enjoy the benefits of reduced cost of funds,” explained Lyn McGrath, group executive of retail banking.
“We want our customers to know that we are absolutely invested in their financial security and prosperity. Supporting Australian families to more comfortably manage their home loan repayments is an integral part of delivering on this commitment,” she added.
Virgin Money, part of the BOQ Group, also announced plans to cut interest rates across all variable home loans for existing owner occupiers and investors, albeit by just 22 basis points.
“We want our existing home lending customers to see the benefit of the reduced cost of funds quickly, and hope this will go some way towards easing the financial pressure of owning a home and, in some cases, create opportunities for our customers to own their homes sooner,” said Virgin Money’s GM of lending, cards and deposits, Johnny Lockwood.
CUA, Australia’s largest credit union, is also to pass a 0.25% reduction through to most home loan customers, including those with standard and discount variable loans and fresh start home loans – benefitting around 80% of its borrowers.
