Big banks announce cuts following RBA decision, but it’s smaller lenders you should be watching
In the 24 hours since the RBA cut the cash rate, we’ve seen a flurry of activity on the home loan front as banks and lenders scramble to revise their interest rates.
Some were ready from the get-go, announcing their plans within minutes of the cut. Others were less proactive. As decisions continue to trickle through, let’s take a look at the lenders that have already made moves.
Big banks delay cuts by up to three weeks
We received word of all four major banks’ plans within a few hours of the RBA announcement. ANZ was the first to budge, announcing it would be passing on just 0.18% of the cut to its home loan customers, in a move condemned by Reserve Bank Governor Philip Lowe.
The other big banks were more generous. Both Commonwealth Bank and NAB announced they would be cutting the full 0.25% off their range of variable rate home loans — impressive considering the two didn’t cut more than 0.13% following 2016’s rate cut.
Meanwhile Westpac announced it would be cutting a modest 0.20% for owner occupiers, and 0.35% for investors making interest only repayments.
While this can only mean good news for anyone with a mortgage in the long run, it’s worth paying attention to how long the banks will wait before actually implementing the cuts for their customers.
Cuts made by the Big 4
Cut | Effective Date | Delay | |
---|---|---|---|
ANZ | -0.18% | 14 June | 10 days |
CommBank | -0.25% | 25 June | 21 days |
NAB | -0.25% | 14 June | 10 days |
Westpac | -0.20% | 18 June | 14 days |
The last time the RBA reduced the cash rate, the major banks refrained from passing on the cut immediately, allowing them to pocket an extra $7.1 million per day. This time it looks like they’ll be delaying the cut by an average of almost 14 days.
Smaller lenders act quickly to attract borrowers
Smaller lenders, on the other hand, are being far less stingy. Athena, Homestar, and Reduce Home Loans all passed on the full rate cut, effective immediately.
So while some of the big banks wait up to three weeks to offer borrowers relief, others have been springing to action in a bid to attract more customers.
Currently, smaller lenders occupy all of the top spots in our database, with Athena offering 3.34% (3.30% comparison rate*), Homestar offering 3.24% (3.25% comparison rate*) and Reduce Home Loans offering 3.19% (3.23% comparison rate*).
So whether you’re on the market for a home loan or looking to refinance, smaller banks and lenders are shaping up to be a pretty attractive option. Check out some quality options below, or head over to our variable rate home loan comparison page for a more comprehensive overview.
Home loan comparisons on Mozo - last updated 29 March 2024
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Featured Product
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
Owner Occupier, Refinance Only, LVR <80%
variable rate
comparison rate
Initial monthly repayment5.99% p.a.5.90% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- variable rate
- 5.99% p.a.
- comparison rate
- 5.90% p.a.
- variable rate
- 5.99% p.a.
- comparison rate
- 5.90% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Unloan Unloan Variable
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Featured Product
Ultra Low Rate <95% LVR
Owner Occupier, Principal & Interest
variable rate
comparison rate
Initial monthly repayment6.30% p.a.6.58% p.a.Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required. New Purchase - Metro only.
CompareCompareUltra Low Rate <95% LVR
Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required. New Purchase - Metro only.
- variable rate
- 6.30% p.a.
- comparison rate
- 6.58% p.a.
- variable rate
- 6.30% p.a.
- comparison rate
- 6.58% p.a.
- Upfront fees
- $790
- Ongoing fees
- $0.00
- Discharge Fee
- $795.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $350,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Sucasa Ultra Low Rate <95% LVR
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Offset Home Loan
Package, Owner Occupier, LVR<60%, Principal & Interest
variable rate
comparison rate
Initial monthly repayment6.15% p.a.6.40% p.a.Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
CompareCompareOffset Home Loan
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- variable rate
- 6.15% p.a.
- comparison rate
- 6.40% p.a.
- variable rate
- 6.15% p.a.
- comparison rate
- 6.40% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
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Read our Mozo Review to learn more about the Macquarie Offset Home Loan
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Mozo experts choice awards won:
- Exceptional Value Home Lender - 2024
Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
variable rate
comparison rate
Initial monthly repayment6.01% p.a.6.14% p.a.Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
CompareCompareExpress Home Loan
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
- variable rate
- 6.01% p.a.
- comparison rate
- 6.14% p.a.
- variable rate
- 6.01% p.a.
- comparison rate
- 6.14% p.a.
- Upfront fees
- $134
- Ongoing fees
- $10.00 monthly
- Discharge Fee
- $350.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $5,000
- maximum borrowing amount
- $3,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Bendigo Bank Express Home Loan
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OMG Home Loan
Owner Occupier, Principal & Interest, <60% LVR
variable rate
comparison rate
Initial monthly repayment5.99% p.a.6.00% p.a.BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.
CompareCompareOMG Home Loan
BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.
- variable rate
- 5.99% p.a.
- comparison rate
- 6.00% p.a.
- variable rate
- 5.99% p.a.
- comparison rate
- 6.00% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $395.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $1,500,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the BCU Bank OMG Home Loan
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Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
variable rate
comparison rate
Initial monthly repayment6.14% p.a.6.16% p.a.Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
CompareCompareNeat Home Loan
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
- variable rate
- 6.14% p.a.
- comparison rate
- 6.16% p.a.
- variable rate
- 6.14% p.a.
- comparison rate
- 6.16% p.a.
- Upfront fees
- $250
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $80,000
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the ubank Neat Home Loan
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Basic Home Loan
Owner Occupier, LVR 60-70%, Principal & Interest
variable rate
comparison rate
Initial monthly repayment6.15% p.a.6.17% p.a.Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 30% Deposit required.
CompareCompareBasic Home Loan
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 30% Deposit required.
- variable rate
- 6.15% p.a.
- comparison rate
- 6.17% p.a.
- variable rate
- 6.15% p.a.
- comparison rate
- 6.17% p.a.
- Upfront fees
- $350
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Macquarie Basic Home Loan
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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