The Co-operative Bank is the first bank to cut its floating home loan rate following this morning's 25 basis points Official Cash Rate cut by the Reserve Bank to a record low of 2.25%.
The Co-operative Bank is dropping its floating home loan interest rate by 25 basis points to 5.45%. The new, lower rate is available to new floating rate home loan customers from tomorrow, Friday March 11, but not for existing customers until Tuesday, March 29.
"The decision to drop the OCR by the Reserve Bank was unexpected, but it was important to pass this change on to our customers so that they could quickly receive the benefits," Co-operative Bank CEO Bruce McLachlan said.
Most of the other retail banks currently have carded, or advertised, floating mortgage rates of 5.74% to 5.75%, with ICBC the lowest at 5.60% and Westpac the highest at 5.85%. See all banks' carded, or advertised, residential mortgage rates here.
On the other side of the ledger, Westpac has cut its bonus saver account interest rate by 25 basis points to 2.75% with immediate effect.
*ANZ cut its floating and flexible home loan rates by a wafer thin 10 basis points late on Thursday. See more here.