Despite having higher funding costs and much lower home loan interest rates than the major banks, the Greater Building Society has today announced that it will cut its basic variable home loan rate by 0.25% to 6.44% p.a and its standard variable home loan rate by 0.25% to 6.80% p.a, passing on the Reserve Bank of Australia’s reduction in the cash rate in full.

The new rates will be effective from Monday December 12 for new customers and from December 15 for existing customers. Last week the Greater also cut its one year fixed home loan rate to 5.69% p.a, which it is still the lowest home loan rate in Australia.

Greater CEO Don Magin said the Greater continues to offer some of the lowest home loan interest rates in Australia. The Greater’s standard variable rate is 0.5% lower than the average of the four major banks.

He said that when you look at the all important comparison rates, the Greater’s rates are generally even more attractive.

“The 0.5% difference between the Greater and the major banks on a 30 year, $300,000 standard variable home is significant – with a Greater customer saving $102 per month.”

“Despite having a higher cost of sourcing funds than the major banks, the Greater has passed on the rate reduction in full for the benefit of our borrowers, particularly given it is just before Christmas,” Mr Magin said

“As the Greater is a mutual, our focus has and always will be on providing great rates, low fees and outstanding service to customers, rather than profits to shareholders.”

The Greater was voted Australia’s Best Home Loan Provider in the 2011 Mozo People’s Choice Awards.

Media information: Craig Eardley on 0437 477 493 or visit www.greater.com.au