Hi all, I couldn't find a home loan discussion group so I put it in under Property, apologies if this isn't the best place. On the weekend St George Bank kicked off new lending campaign... 1.5% discount on the standard variable rate which reduces new loans to 5.4% for the first year and then they revert to the standard variable with a package discount (depending on the size of the loan). Home loan - St. George Your Life Your Home Obviously this is to kickstart some extra loans, how long will it take other banks to reduce their rates further. With some serious drops in interest rates in the short term horizon (up to an additional 2% drop before end of 2009, depending on which newspaper you read) it will be very interesting to see how many people start borrowing to invest in either property or shares which are yielding higher returns. Cheers, Dan PS This is general information, before making a lending decision speak to your lending expert, before investing speak to your FPA registered Financial Planner.