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 (interest-free days)
Mr Hunt said the reductions would apply from Monday 10 December for new home loan applications and Tuesday 1 January 2002 for existing loans, overdrafts and credit cards (interest-free days).
Bendigo Bank's new residential variable rate will be 6.10% p.a.
The reduction will save home borrowers about $8 per fortnight (or $16 per month) in interest costs on a $100,000 loan.
This is the sixth reduction in official cash rates this year. Bendigo Bank has passed on all reductions to home borrowers, a total cut of 2.00% p.a. or $61 per fortnight ($131 per month) in interest costs on a $100,000 loan.
"Those are substantial savings for households with existing loans, as well as being enticing to customers considering finance," Mr Hunt said.
"Just as importantly, though, the reductions have stimulated the small to medium business sector responsible for a large proportion of job creation and the social well-being of this country."
Mr Hunt said Bendigo Bank had seen the benefit of rate reductions reflected in strong lending figures, particularly during the second half of the year.
He said Bendigo was mindful of the impact of lower rates on its depositors and was offering a special four-month term deposit rate of 4.10% p.a.
"Bendigo Bank will be reviewing all its rates in response to today's Reserve Bank announcement," Mr Hunt said.