Firstmac to pass on May rate cut in full

Australia's largest non-bank mortgage lender Firstmac will pass the full cut to its customers following the RBA's 0.25 percent cut to the official cash rate.

Almost half of Australia's lenders are continuing to stall on revealing their response, but Firstmac have announced their cut will be effective from May 23.

The cut will apply to all variable rate loans including owner occupier and investment loans.

Firstmac Managing Director Kim Cannon said Firstmac was pleased to be in the minority of lenders who had promptly committed to pass on the full benefit to borrowers.

“It is disappointing that nearly two thirds of Australian lenders have either failed to pass on last week’s RBA rate cut in full, or have not yet announced their response, leaving mortgage brokers in an awkward situation with their customers,” he said.

“There is plenty of competition in the home loan market, and bank customers can see they could be saving money on interest if they chose another lender as well as getting straight answers about how much they will be paying.”

“Bank customers who switch to a Firstmac home loan can save themselves tens of thousands of dollars, and years off their home loan.”

Comparison site finder.com.au found that 49 percent of the 74 lenders on its database have still not announced their rate changes, a full week after the RBA announcement.

Only 26 lenders have passed on the cut in full, while 12 lenders have kept some of the cut for themselves.