Bendigo Bank targets new borrowers with home loan rate cuts

Bendigo Bank has reduced a number of its variable home loan interest rates for new borrowers, while rates for existing borrowers remain unchanged.
Bendigo bank
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The bank has cut variable rates by 0.20 percentage points across a range of its principal and interest and interest-only products for owner-occupiers.

This means for new borrowers, the bank’s basic variable rate for owner-occupiers has dropped from 4.48% to 4.28% (new comparison rate of 4.46%).

A number of the bank’s Connect Package Variable, Residential Variable and Generation Green home loan products have also been trimmed by 0.20 percentage points.

There have been no rate changes for existing customers or to fixed rate products and investor home loans.

Canstar’s database shows 15 lenders have increased variable home loan interest rates this year so far, while nine have reduced variable rates.

National Australia Bank, Macquarie and ING are among those to have increased, while Heritage Bank, Bankwest and State Custodians are among those to have made cuts.

Meanwhile, a number of economists who were forecasting the Reserve Bank to eventually lift the official cash rate have recently toned down their outlooks, including the National Australia Bank which now suggests there could be an eventual rate cut.

The RBA Board minutes released today have confirmed Governor Philip Lowe’s recent comment that chances of a cash rate increase or decrease in the foreseeable future were now “more evenly balanced”.

CBA economists say they expect the cash rate to remain unchanged, most likely until November 2020.

“However, we see the risks over the 2019 as tilted toward the downside as the housing market continues to adjust lower and impact the consumer,” they said in a note today.

“Developments in the labour market will also be important to watch for direction of the RBA. But the hurdle to cut rates remain high in our view.”

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