The Reserve Bank has been particularly busy this year, having cut official interest rates three times since June. But have any banks or lenders passed on the full 0.25% cut on all three occasions?
Enter Athena Home Loans, Homestar and UBank. Within hours of the RBA’s decision this month, all three announced they’ll be cutting variable rate home loans in kind. That makes them the only lenders so far to reduce rates by the full 0.75% in 2019.
Back in June, there was a lot of pressure on lenders to do right by their customers and pass on the full cut - and the response was near unanimous. 47 lenders reduced their variable home loan rates by 0.25%, while the holdouts faced plenty of criticism.
But after two more cuts to the cash rate it’s become clear we’ve reached a point of diminishing returns. So far, 21 lenders in our database have made a move this month, hacking off an average of only 0.16%. As for the big banks, they’ve made cuts of between 0.13% and 0.15%.
The trio of Athena, Homestar and UBank has done a good job of bucking that trend. Currently, the three offer rates much lower than the average big bank standard variable rate - which currently sits at 4.80%. Below, we run through a selection of home loans from each plus some of the features that make them great.