It’s official - Australia’s big four banks have now weighed in on the October RBA decision by announcing their respective cuts to variable home loan rate offers.
And not a single one has passed on a full 25 basis point cut.
The Commonwealth Bank was the first of the major banks to make a move just hours after the Reserve Bank cut the official cash rate from 1.00% to 0.75%.
Commbank announced a 0.13% reduction across its Standard Variable Rate home loan offers, with the new Standard Variable rate for owner occupiers making principal and interest repayments set to drop to 4.80% (4.95% comparison rate*) from October 22.
NAB was the second of the big four to move, with an announcement on Tuesday evening that it would shave 0.15% off its variable rate Tailored Home Loans. The decision means the NAB Tailored Home Loan for owner occupiers making principal and interest repayments will drop to 4.77% (4.90% comparison rate*) as of October 11.
“With the RBA cash rate at historic lows, the cost of deposits comes under pressure,” said NAB Chief Customer Officer Consumer Banking, Mike Baird, in a statement released on Tuesday night.
“This dynamic is unlikely to change for the foreseeable future, but we’re determined to support all our customers and play our part by continuing to lend to boost growth and confidence in the economy.”
Meanwhile, ANZ (0.14% reduction) and Westpac (0.15% reduction) also announced changes to their respective variable home loan rates.
ANZ’s move means that their Standard Variable Rate loan for owner occupiers making principal and interest repayments will fall to 4.79% (4.89% comparison rate*) as of October 11.
Westpac’s decision, which will be effective as of October 16, drops the Rocket Repay Home Loan rate for owner occupiers making principal and interest repayments to 4.83% (4.97% comparison rate*).
Are there greener pastures elsewhere for Aussie mortgage holders?
With an average home loan rate in the Mozo database of 3.87% (for owner occupiers making principal and interest repayments) as of October 1, and a handful of lenders offering rates below 3.00%, Mozo Director, Kirsty Lamont, has urged Aussies to look beyond their current lenders if they’re not getting value for money.
“Now that the Reserve Bank has cut rates again the door is well and truly open for new borrowers and refinancers to snag a competitive deal on their home loans,” she said.
“If you haven't already, now is the time to take a long hard look at your current interest rate and seriously weigh up whether it may be time to give your lender the flick if they’re no longer up to scratch.”
Among the lenders who have already announced rate cuts following the Reserve Bank’s decision, online lenders Athena Home Loans, Homestar and UBank have all passed on a full 25 basis point cut.
Athena’s Variable Home Loan now stands at 2.84% (2.80% comparison rate*), Homestar’s Star Essentials Home Loan sits at 2.74% (2.77% comparison rate*) for new borrowers and will apply to existing borrowers from October 28, while UBank’s UHomeLoan - Discount offer will drop to 2.84% (2.84% comparison rate*) from October 29.
So if you’re ready to take the leap, make sure you check out the hot home loan offers below, or keep up to date with all the important home loan rate changes by heading over to our Naughty or Nice table.