ANZ, NAB pass on the rate cut in full
Following much anticipation from the public, Melbourne-based bank ANZ and National Australia Bank (NAB) have announced that they will pass on the full interest rate cut announced by the Reserve Bank earlier this week.
This follows warnings from federal treasurer Wayne Swan to the big four banks that households and small businesses will be angered if the full rate cut is not passed on.
According to the treasurer, the rate cut could mean a saving of $50 a month for a family with a $300,000 mortgage.
If this model family was with a bank that also passed on the 0.25 basis point cut in November, they could be saving $100 a month, he said.
The fall in the interest rate may spur encourage activity in the real estate market.
RP Data said at the end of last month: ''With fixed and variable home loan rates falling … Australians are benefiting from a very welcome boost in housing affordability.''
According to its research, in the ten months to October of this year, Sydney house prices were flat and Melbourne and Brisbane prices fell by 0.6 per cent and 1.6 per cent respectively.
Those in the market for a home will be watching with interest to see if the remaining two major lenders follow ANZ and NAB in their decision to pass on the rate cut.