We reveal who’s cutting rates on business loans

While banks have been moving quickly to deliver interest rate cuts for mortgagees, they’ve taken more time in passing on those cuts to business owners.

While banks have been moving quickly to deliver interest rate cuts for mortgagees, they’ve taken more time in passing on those cuts to business owners.

But the wait is paying off, with business loans seeing significant rate cuts in the last two weeks.

Credit research firm Cannex has analysed more than 500 business loans, of which financial analyst Peter Arnold says 160 have had their interest rates cut since 7 October, when the Reserve Bank shocked the market by cutting the official cash rate by 1%.

“It is pretty much what we expected, but a lot of the changes have occurred a little bit after the RBA change. They were a bit slow to move, but that was to be expected.”

Arnold says the longer wait is due to the higher risk of business loans compared to residential loans, but argues the outlook is good. “I wouldn’t be surprised if we didn’t see some more changes soon.”

Meanwhile, Arnold argues the business loan market is stable, “as much as it can be in this environment”.

The top 10 cuts to business loans:

  1. ING commercial property 1 year fixed – 2.1% to 6.6%.
  2. AMP 1 year fixed – 1.7% to 7.69%.
  3. AMP 2 year fixed – 1.6% to 7.69%.
  4. AMP 3 year fixed – 1.6% to 7.69%.
  5. ING commercial property 2 year fixed – 1.6% to 6.9%.
  6. BankWest 180 day commercial advance – 1.34% to 7.4%.
  7. ING commercial property 3 year fixed – 1.3% to 7.15%.
  8. BankWest fixed 1 year – 1.3% to 6.4%.
  9. Bank of Queensland term loan other secured fixed 1 year – 1.3% to 8.05%.
  10. Bank of Queensland term loan residential secured fixed 1 year – 1.3% to 7.55%.

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