NEWCASTLE Permanent has passed on the Reserve Bank of Australia's full interest rate cut, reducing standard variable home loan interest rates by 0.25% p.a. across its loan products.
The variable home loan reduction, effective June 17, represents an approximate saving of $53 per month for customers with a $350,000 home loan over 30 years*, or $15 per month for every $100,000 borrowed over the same term.
The Perm's reduction is across owner occupier, investment and business loan products.
On Tuesday the RBA slashed the official cash rate from 1.5% p.a to a historic low of 1.25%, indicating that it may further reduce the rate to help stimulate employment growth and inflation targets.
NAB and Commonwealth Bank have passed on the full 0.25 per cent cut to customers but rivals ANZ and Westpac have not, lowering interest rates on mortgages by 0.18 and 0.20 per cent respectively.
Newcastle Permanent acting chief executive officer Mark Williams said the customer-owned banking institution would continue to offer consistently fantastic value to homebuyers.
"Customers of the major banks continue to realise they come second to shareholders' dividends - while we're proud to remain customer-owned and customer-focussed," he said.
Mr Williams said customers could choose to maintain the amount they paid off their home loans, effectively paying off their loan balance sooner, or enjoy the benefit of some extra space in their monthly budget."