AMP has announced a 10 point cut to its home loan interest rates, introducing the
much needed competition into the Australian mortgage market.
The Drop is to AMP’s basic mortgage rate for new homebuyers down to 6.24 per cent
and is “hopeful we will be further able to reduce our rates”, the Daily Telegraph
reported.
The newspaper suggested that the move is a strong indication that the global financial
crisis has not wiped out smaller lenders or allowed the major Australian banks to
monopolize the mortgage market.
AMP managing director Craig Dunn said: “This reduction in interest rates has only
been possible because of the improvement to the securitization markets flowing on
from the government’s support.”
The announcement supports the findings of a report by the Herald Sun earlier this
month which claimed that a range of smaller lenders are set to take on the major
banks in the home loan market this year.