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Mutual cuts rates by up to 31bps

Teachers Mutual Bank and its subsidiaries have introduced a rate cut for certain owner-occupier home loans, two weeks after hiking interest-only rates by 50 basis points.

The cuts apply only to new owner-occupier principal and interest lending and are effective today (17 August).

Loans of $250,000 and above where the loan-to-value ratio (LVR) is at 80 per cent will be cut by between 18 and 31 basis points to a new rate of 3.89 per cent per annum (p.a.).

Additionally, new fixed rate principal and interest lending will have rates cut by between 25 and 31 basis points.

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The new rates are 3.79 per cent p.a., 3.84 per cent p.a. and 3.99 per cent p.a. for loans with respective one, two and three-year terms.

The moves follow a spate of rate cuts at CBA last week over both principal and interest and interest-only lending.

Heritage Bank also announced rate changes earlier this week, pushing interest-only rates up by 0.40 per cent p.a.

Two weeks ago, Teachers Mutual Bank and its subsidiaries also pushed interest-only rates up by 50 basis points.

The changes come at a time of regular rate shifting as banks push and pull rates to stay in line with regulatory mandates.

[Related: CBA’s new IO lending over 30%]

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