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Lenders finesse their mortgage pricing

Adelaide Bank, AMP Bank, Aussie and Community First Credit Union cut variable home loan rates over the past week, in a sign that as the interest rate tightening cycle continues lenders are taking more differentiated approaches to their pricing decisions.

Comparison site Canstar reported that in the week ending October 10, Adelaide Bank cut rates on two loan products by 6 basis points, Aussie also cut by 6 bps and AMP cut its Essential Home Loan rate by 13 bps.

The big mover was Community First, which cut the rate on its Accelerator Package (owner occupier, interest only) by 75 bps and its Accelerator Package (investment, interest only) by 85 bps.

In the last week of September, Citi, ING, and bcu cut variable rates for owner occupiers and investors by as much as 50 basis points, while BankVic made changes to its product range that resulted in a lower variable rate offer.

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