Cuts to variable lending rates
Bendigo Bank acted quickly to cut variable interest rates by 0.25% p.a. for a wide range of borrowers in response to today's reduction in official interest rates.
Group Managing Director Rob Hunt said the reduction would apply to:
- Residential secured variable rates
- Business base lending rates
- Personal loan variable rates
- Credit cards
Mr Hunt said the reductions would apply from Monday 8 October for new applications and Thursday 1 November for existing loans, overdrafts and credit cards.
Bendigo Bank's new residential variable rate will be 6.35% p.a.
The reduction will save home borrowers about $21 per month in interest costs on a $100,000 loan.
This is the fifth reduction in official cash rates this year. Bendigo Bank has passed on all reductions to home borrowers, a total cut of 1.75% p.a. or $146 per month in interest costs on a $100,000 loan.
Mr Hunt said Bendigo was mindful of the impact of lower rates on its depositors and had introduced a special 100-day term deposit at 4.25% p.a.
"Bendigo Bank will be reviewing all its rates in response to today's Reserve Bank announcement," Mr Hunt said.