Decrease to Interest Rates on Home Loans

Today we announced that we will be decreasing the interest rate for our variable rate home loans by 0.40% p.a. effective from Friday, 11 May 2012. Click here to read the full press release.

As Australia's largest home lender, we're committed to offering competitive pricing for home loan customers.

When making a decision on our variable interest rates we must consider more than just the Reserve Bank's official cash rate. To meet our customers' demand for loans, the Bank borrows its funds from a variety of sources, both in Australia and internationally. A significant portion of the Bank's own borrowing costs is affected by the current uncertainty in global markets.

At the same time, strong competition on savings and term deposit accounts has resulted in increased costs for retail deposit funding, which are an important source of funding for home lending products.

As a result, against a back drop of very high funding costs, we're decreasing home lending interest rates as much as possible.

We continue to closely monitor the global markets to ensure we make the right decisions to create a sustainable, long-term business that will support our customers, not just for today but into the future.

	Old rate (% p.a.)	New rate (% p.a.)	New comparison rate (% p.a.)	Change
Complete Home Loan Variable Rate	7.41%	7.01%	7.15%	-0.40%
Economiser (Base Variable Rate)	6.90%	6.50%	6.64%	-0.40%
No Fee Variable Rate	6.71%	6.31%	6.31%	-0.40%
Viridian Line of Credit (Residential Equity Rate)	7.56%	7.16%	N/A	-0.40%