St George Bank Rate CutFounded in 1937 as a housing based financial institution, St George built a reputation as Australia's foremost building society, before achieving full banking status in July 1992. St George decided not to pass on the full rate cut, instead cutting their standard variable home loan rate by 85 basis points, saying that the impacts of the global financial crisis meant higher funding costs.
Their rate comes down to 6.89 per cent. The bank made the decision following the Reserve Bank of Australia (RBA) announcement to cut official cash rates by 100 basis points. The cut of 0.85 per cent on a $250,000 mortgage saves home owners around $145 per month on their mortgage repayments.
Other lenders have also cuts rates. Bankwest cut home loan rates by 85 basis points while The Commonwealth Bank and National Australia Bank passed on the full 1 per cent rate cut. Westpac Bank, which owns St George, has cut their rates by 80 basis points.
The RBA has cut rates a total of 300 basis points in the past four months, in an attempt to stop Australia from falling into a recession. In September, when rates were at 7.25% and home loan rates were almost 10% the local economy slowed rapidly. Home-owners will be grateful for this pre-Christmas gift, while potential home owners wanting to take advantage of low rates are now eyeing up the market.
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