Bendigo drops home loan rate

BENDIGO and Adelaide Bank have become the sixth of Australia's major financial institution to lower interest rates on home loans but is still charging more than the big four banks.

BENDIGO and Adelaide Bank have become the sixth of Australia's major financial institution to lower interest rates on home loans but is still charging more than the big four banks.

The regional lender at the weekend said it would cut its standard variable rate on home loans by 20 basis points to 6.90 per cent from June 25.

"Our bank needs to take into account a wide range of factors and carefully consider its borrowers, depositors, staff, shareholders, partners and the wider community," managing director Mike Hirst said.

Bendigo's rival, Bank of Queensland (BOQ), was the first to slash interest rates after the Reserve Bank of Australia lowered the overnight cash rate by 25 basis points on Tuesday.

The big four banks and Westpac's subsidiary St George Bank followed on Friday. AAP