Aussie Home Loans drops mortgage rates, but auction market still becalmed

Last week’s 75-basis-point interest rate cut has failed to stir the property market, with auction clearance rates only moving up a fraction.

Last week’s 75-basis-point interest rate cut has failed to stir the property market, with auction clearance rates only moving up a fraction.

Sydney has continued a second week of growth, but only jumped two percentage points to 49%. Sales totalled $102.4 million with 146 properties sold.

Melbourne has suffered an 11% drop to 54%, although last week’s unusual high can be attributed to fewer properties on the market due to the races. Total sales reached $168.93 million for 226 properties.

Meanwhile, Brisbane only dropped 2% to 26%, while Adelaide increased its clearance rates from 39% to 42%.

Prospective buyers will be encouraged by Aussie Home Loans’ decision to drop its standard variable mortgage rate by 40 basis points – taking it to 7.65%.

Aussie also says it will reduce the rate of its basic variable loan for first home buyers to 6.99%.

Executive chairman John Symond says the new rate will lead to increased competition. “The big winners from the rate drops are consumers, who will enjoy renewed competition among the major lenders in the market,” he says.

“Our first home buyer rate, at under 7%, should also provide a much-needed stimulus to the housing sector.”