Athena first to cut interest rates after March RBA cut

Athena first to cut interest rates after March RBA cut
Staff ReporterDecember 7, 2020

Athena Home Loans have again been the first to cut rates following the RBA's official rate cut at the March meeting.

The online lender has passed on the full 25 basis point cut.

“For the fourth time in a row, Athena has immediately passed on the full RBA rate cut to all customers", Athena chief executive Nathan Walsh said.

"None of the 12 largest home loan lenders have done this.

"This is money that should be in the pockets of Aussie families."

Since the RBA began cutting rates back in June 2019, Athena have passed on each of the 25 basis point cuts in full. Their owner occupier rate for principal and interest mortgage holders is now at 2.59 per cent.

The 12 largest home lenders took an average of two weeks pass on the cuts to customers over the last three RBA rate cuts in full.

This delay has cost borrowers over $350M, and costs over $2 billion in annual excess interest costs.

In a recent survey, only 18% of respondents were confident their lender had passed on the recent rate cuts in full.

Some 64% of respondents who did not receive the full cuts are now considering a switch to a lender that passed on the rate cuts in full.

Walsh said customers should be putting their bank to the test

"If they don't drop your rate in full, then drop your bank", Walsh said.

"The savings opportunity is too important to be short-changed."


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