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Smaller banks reveal their hand

One week after the majors announced their rate movements Australia’s second tier lenders have revealed their new home loan rates.

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AMP yesterday announced it would raise its standard variable rate by 38 basis points to 7.82 per cent.

The lender's announcement followed ING DIRECT's decision earlier this week to lift its SVR by 38 basis points –  taking the rate on its Mortgage Simplifier to 7.12 per cent.

Bankwest and Suncorp have also lifted their respective rates by 0.4 and 0.39 per cent.

Bendigo and Adelaide Bank has also lifted its SVR – increasing it by 35 basis points to 7.8 per cent.

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The rate announcements from the second tier show that the smaller lenders are competitive in their pricing and will continue to challenge the majors for market share.

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