Wealth manager AMP Ltd
(ASX:AMP) has lowered interest rates on its entry level home loan products thanks to a stronger securitisation market.
The interest rate on its basic variable home loan has been dropped by 22 basis points to 6.27% and the rate on its introductory variable mortgage has been cut by 45 basis points to 5.94%.
AAP reports that the adjusted rates will apply to new customers and are effective from today.
The company joined the big four banks in hiking its interest rates on most products by 25 basis points on March 2 after the Reserve Bank’s decision to increase the official cash rate by a quarter of a per cent.
CEO Craig Dunn says a revived market for residential mortgage back securities (RMBS) has helped AMP fund lending growth and provided much needed competition for the big four banks.
NAB’s standard variable rate stands at 6.74%, ANZ’s is at 6.91%, Westpac’s is 7.01% and the Commonwealth Bank’s is at 6.86%.
AMP posted a profit of $739 million for calendar 2009.
