The Interest Rate Cut List – From the February 3 Announcement

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Many of our loyal readers know how much we love keeping up with all the new announcements on what we are starting to refer to it as “Rate Day” and I have to say that our most read topic on Rate Day is without a doubt “The List”.

Another 100 basis point drop was announced today (don’t need to look further than our other posts for more information) and of course, we love our lists!  So read on to see who’s passing it on this time!

We’ll keep the list updated as we go, so if you hear more than what we have, don’t be afraid to tell us!

In no particular order, so far we have:

  • Westpac Bank – 100bps! Effective Date: February 9th 2009
  • Keystart – 100bps!
  • ANZ – 100bps! Effective Date: February 13th 2009
  • CBA – 100bps! Effective Date: February 13th 2009
  • NAB – 100bps! Effective Date: February 13th 2009
  • St George – 100bps! Effective Date: February 13th 2009
  • BankSA – 100bps! Effective Date: February 13th 2009
  • RAMS Home Loans – 100bps! Effective Date: February 9th 2009
  • Aussie Home Loans – 100bps! Effective Date: February 13th 2009
  • Suncorp-Metway – 100bps! Effective Date: February 23rd 2009
  • AMP Banking – 100bps! Effective Date: February 13th (New), February 15th (Existing)
  • HomeStart Finance – 100bps! Effective Date: February 19th 2009
  • GE Money – ??? – Announcement to be made on February 20th 2009 (Thanks H Schryver for the Tip). Click here to read more about GE’s Latest Announcement
  • MyRate.com.au – 100bps! Effective Date: February 16th, 2009
  • ABNAMRO – 100bps! Effective Date: February 9th, 2009
  • Challenger – 100bps! Effective Date: February 10th (New), February 23rd (Existing)
  • BankWest – 100bps! Effective Date: February 20th 2009

Please note that this is correct as we hear about them and you really should check with your lender as to whether or not these rate cuts are being passed on to you and the type of loan that you have (as not all loan types may attract these great interest rate cuts!)

In the meantime, let us know who else is passing on the rate cuts and how much as we compile and keep updating the list of interest rate cuts.

Keep checking back here as we update list!

The list above relates to the Interest Rate Cut announced on the 3rd February, 2009.

*Note Last Update done: February 10, 2009

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48 COMMENTS

  1. I know it sounds crazy, but I think if they government wanted to energize the economy, maybe 1.5% should have been the amount. I think everybody expected 1%, markets need to be shocked into action, not sure this will increase spending.

  2. Is there any point Westpac passing on the full 1% if they can’t process applications in time to meet contract deadlines?

  3. Good point Jack, I expect that when their market share starts to drop such that they “catchup” with their processing, the BDM’s will resurface begging for business.

  4. Lets see if Wizard pass on the cut quicker than they did the last one. The reason for the last slow announcement was that they were not meeting till a week or so after the reserve had met – how stupid when they knew that they were meeting and that they were without no doubt going to drop rates. When they finally met and dropped the rate, it was effective some 4 weeks after all the other banks etc for existing customers.

    If it was easy to swap loans I would as their service the past 6-12 mths has been terrible!

  5. I agree with Jack, it doesn’t matter how good the rates are at Westpac. They can never process a loan to meet settlement deadline and how unproductive do they make your job so you don’t have to spend 47 minutes on hold to call centre and speak to 5 different people on 5 different days and get more than 25 different answers!! And try and get help from your BDM who never answers your calls and takes too long to return emails. What’s the point of them having a blackberry!!

  6. The email I received from the ANZ today shows a rate drop of 1% except for the Equity Manager were the rate drop is only 0.85%. Maybe it costs the ANZ more for the money the lend in an equity account versus a P & I Loan 🙂 Or maybe they are just trying to increase their margins by hitting the customers instead of the brokers this time around.

  7. Tanya, At least this time Big John was at the reserve bank the day of the announcement (at the same time as a film crew luckily) so they cant plead the same excuse as last time. A bigger question for Wizard (before they disappear in a puff of smoke) is now that the CBA has Big John tied up nice and tight who is “going to keep the bastards honest” or now that one of them provides his meal ticket isn’t that line peddled anymore?

  8. Aussie John has joned the party and my rate is now a pleasing 5.16%. Surely before too long its going to be time to fix for as long as possible as these are the lowest rates in decades.

  9. Well I have just heard from my mortgage man, and apparently he was advised via an email this morning and that they (Wizard) are having a meeting on 18th February to discuss! Well there they go again meeting some 2 weeks after the Reserve have met. You watch they will then make it effective for all existing customers 4 weeks after that, making it approximately 6 weeks.

    Terrible, terrible service – Not happy Jan……………

  10. On stimulating the economy, they (the Government) should consider reducing the income tax rates for individuals, trusts and companies to a flat 20 cents the dollar (with concomitant increases in the GST – which at 10% is virtually unnoticed). Abolishing state government(s) would be a good idea as well. Just look at the factional and fiscal mess NSW is in at the moment.

  11. As an independant mortgage broker, they are all missing their deadlines, they have sqeezed out the competition with Mr Rudd’s help by only supporting the big four, and now they can’t keep up with the influx. CBA advertises 60 minute home loans, more like 2 weeks. To assist the economy the government should waiver all fixed loan break costs, then you will see spending increase.

  12. I just experienced a WORLD SPEED RECORD….Westpac took just 8 weeks to approve a $20,000 increase for an existing borrower (i.e. mortgage already in place and a 75% LVR). “Premier Broker” deals will get assessed within 3 days, “Cattle Class……we’ll get to you when we get around to it”

  13. Pepper Home loans are still waiting on a decision as to whether our rates will be cut…directors still havent decided….thats just ridiculous..they know the RBA will reduce rates so why no decision over 1 week later?

  14. just wondering i use to be with rams till they sold everthing to RHG so if rams has cut there interest rates what about RHG

  15. Well Wizard were meant to be announcing by 19/2/09 – TODAY, but I have tried calling them all morning and keep getting a message saying that they cannot take calls as there is an emergency!!!!Tried calling a different number and get another message saying they are having technical difficulties!!!!! Seems a coincidence to me, as they should of announced their rate decrease and now they are having issues.

    NOT GOOD ENOUGH, WIZARD GET YOUR ACT TOGETHER, OR I WILL GO ELSEWHERE…

  16. Wizard still have not announced their rate cut more than 2 weeks after the RBA announced the last rate cut. It is extremely disappointing that it is taking this long. To add insult to injury, they have also started charging a fee for BPAY, which had previously been free.

    Wizard has gone from excellent to pathetic. I would not recommend them to anyone.

  17. I just phone Wizard customer service and was informed that they would not be dropping their current rate at all. This is outrageous. I intend to complain to the ombudsman and change my mortgage provider as soon as I can feasibly do it.

  18. Just spoke with the receptionist at my branch and she said an anouncement would be made on Monday and they have heard nothing. I said the announcement was due prior to today and that I had spoken with cust. service ( I hadn’t) and they told me no reductions were being made, she put me on hold for a short time and came back and said that customer service were correct and there would be no reduction. I think they knew all along but were just holding off telling their customers. I have asked the prinicpal of my branch to call or email me ASAP in regards to this.

    This is terrible, seeing that just this morning the radio was saying that they were going to come down hard on banks (not sure if Wizard are in the same class) that do not pass on the decreased rates.

    Well I think its time to look around, secure a great rate with another lender and maybe lock in.

    Maybe all this hassle with Wizard is due to the take over, and I wonder who made the decision was is Aussie – I actually changed from them some 6 years ago as their service was terrible.

  19. Tanya,

    GE have just announced that they won’t be dropping their rates at all, for the moment. However, they are offering a 3 month window where they will waive their DEF. As Wizard were a related entity, they may offer you the same if you want to refinance.

    I say “may”. It would be worth asking about anyway.

    Good Luck.

  20. GE & Wizard are not passing the rate on. I think that this is a poor decision on GE & Wizard’s behalf! I am now going to take up the exit offer that they are passing and will move to Aussie. See today’s Herald Sun. I doubt that Wizard will change their mind on this one… I do expect that they will get a lot of angry calls today…

  21. I have just spoken with my mortgage man (Wizard) and he is also confused/in the dark, they as a franchisee have not been told which loans are going to CBA and which are going to Aussie, he is hoping to know by first week in March. Either way who ever now has my loan, can apply their rate to mine!
    I think I wil sit still till he advises me of where my loan is now located and ecide then what I will do. He is not becoming a Aussie man, he actually was one some time ago but got out due to internal issues and procedures.

    All still seems like its a huge mess and a huge guessing game being played in the dark.

  22. I have spoken with both Aussie and Wizard since yesterday. If we do nothing, our mortgages will default into GE loans, and I quote: “Your loan will become a GE Loan (AMS MS) it will not be going to Aussie unless you choice to refinance through to Aussie”. This implies our interest rates will remain as GE rates unless we take an active role and apply for refinancing.

    The thing I found most interesting is that the emails have stopped being signed ‘Wizard Loans Services’ and are now being signed as ‘GE Money Customer Service’.

    The other thought I had is that whether the wholesale cost of funding is overly high or not, GE are clearly not trying to keep any of us at Wizard. I believe this decision not to reduce rates is nothing more than an incentive to offload account holders into Aussie’s waiting hands. This implies an active desire on the part of GE to disencumber itself, so now I’m wondering what it would do if we did nothing?

  23. Just received the letter from St George announcing the cut in interest rates. Interested to see that it won’t come into effect until 11 April 2009. Why does it take so long to pass on the interest rate cut (apart from profiteering)? Is this the same with all the major banks?

  24. Hi A,

    Amazing isnt it – when the rates were going up they were quick smart to make the adjustments, but when its the other way round, they seem to take their own sweet time.

    At least they have passed it on, I am with Wizard, so no rate cut for me.

    Tanya

  25. I have just spoken with my reliable Wizard man and my loan now belongs to the CBA, which in effect means that with the 1% reduction from Feb 3rd, my rate is now 5.14%.

  26. Just recd a letter from the CBA, saying that they are reviewing the rates applicable to my Wizard loan!!!!! What does this mean exactly?????

  27. Hi Tanya – it means that you will not be considered a CBA “client” until and unless you formally migrate across to them – in effect a refinancing of your mortgage. It’s what I have to do with Aussie to get out of Wizard.

  28. Hi Tris,

    I am not su sure about that as the letter says ” that my loan is now funded by the CBA and that the interest rate will be determined by them and that the rates are currently under review and they will continue to offer a competitive rate after that date (being 28th Feb)

  29. Well, good luck with that – I hope you can simply transfer across. I enquired at Wizard and was advised I would formally have to apply to refinance my loan through Aussie. Which is a total and absolute pain, even given the deferral of tha DAF. Argh!

  30. Well just received a letter today and it says my Wizard loan will be funded by the CBA but will remain serviced by Wizard (who knows what this means).

    They have also dropped my rate by 1% to %.14% as of March 9th.

  31. I am Mrs.Jones.I am widow with 3 kids and was stuck in a financial situation that i was fixed and needed refinace behind bills.I tried seeking loan from various loan firms both private and corporate but couldnt but as God would have it,i was introduced to a man of God a private loan lender,by the name Travis Harrop,who gave me a loan of $28,000 USD and today am a business owner and my kids are doing well the last in college.So dear,if you must contact any firm with reference to securing a loan with low interest rate and better repayment plans and schedule,please contact Travis Harrop via his private email: travislendingfirm@gmail.com

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