Societies Pass Most Of Rate Cut To Clients

Newcastle Herald

Friday December 5, 2008

By GREG WENDT

HUNTER lenders Newcastle Permanent and Greater Building Society have given their home borrowers an early Christmas gift after heralding cuts to variable rates yesterday.

The move follows the Reserve Bank slashing the official cash rate on Tuesday by one percentage point to 4.25 per cent, the lowest in seven years.

Newcastle Permanent announced it will reduce variable mortgage interest rates by 0.85 percentage points from December 15.

Chief executive officer Terry Millett said continuing uncertainty in global finance was affecting all financial institutions.

"The cost of obtaining retail and wholesale deposits remains persistently high," Mr Millett said.

The Greater will reduce its variable home-loan rate by 0.90 percentage points, effective from December 15 for existing borrowers and for new home loans from today.

Chief executive Don Magin said the Greater would continue to pass on as much as it was able of Reserve Bank cuts to the cash rate.

More in reserve

Business, Page 41

© 2008 Newcastle Herald

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