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 21 May 2022
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Smart Booster Home Loan
2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
variable rate
comparison rate
Initial monthly repayment2.10% p.a.variable for 24 months and then 2.50% p.a.2.46% p.a.New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
CompareCompareSmart Booster Home Loan
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
- variable rate
- 2.10% p.a.variable for 24 months and then 2.50% p.a.
- comparison rate
- 2.46% p.a.
- variable rate
- 2.10% p.a.variable for 24 months and then 2.50% p.a.
- comparison rate
- 2.46% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- 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 Smart Booster Home Loan
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Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
variable rate
comparison rate
Initial monthly repayment1.89% p.a.1.90% p.a.Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) Make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
CompareCompareNeat Home Loan
Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) Make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- variable rate
- 1.89% p.a.
- comparison rate
- 1.90% p.a.
- variable rate
- 1.89% p.a.
- comparison rate
- 1.90% 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 Neat Home Loan
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Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
variable rate
comparison rate
Initial monthly repayment2.14% p.a.2.14% p.a.Rates have moved in line with RBA. Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.
CompareCompareCelebrate Variable Home Loan
Rates have moved in line with RBA. Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.
- variable rate
- 2.14% p.a.
- comparison rate
- 2.14% p.a.
- variable rate
- 2.14% p.a.
- comparison rate
- 2.14% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- 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 Celebrate Variable Home Loan
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Mozo experts choice awards won:
- Low Cost Home Loan - 2022
Variable Rate Home Loan
Owner Occupier, Principal & Interest, LVR <80%
variable rate
comparison rate
Initial monthly repayment2.09% p.a.1.99% p.a.$5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply.
CompareCompareVariable Rate Home Loan
$5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply.
- variable rate
- 2.09% p.a.
- comparison rate
- 1.99% p.a.
- variable rate
- 2.09% p.a.
- comparison rate
- 1.99% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $20,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Fortnightly, Monthly
- Special Offers
- Receive $5000 cashback for Owner Occupier Refinancers only in eligible areas only.
Read our Mozo Review to learn more about the Variable Rate Home Loan
-
Mozo experts choice awards won:
- Best New Home Loan - 2022
- Low Cost Home Loan - 2022
Variable Home Loan
Owner Occupier, Principal & Interest
variable rate
comparison rate
Initial monthly repayment2.24% p.a.2.24% p.a.Purchase and Refinance. No upfront or ongoing fees. Fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet. 20% deposit or equity required. Mozo Experts Choice winner for Best New Home Loan and Low Cost Home Loan 2022. 18 years and over.
CompareCompareVariable Home Loan
Purchase and Refinance. No upfront or ongoing fees. Fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet. 20% deposit or equity required. Mozo Experts Choice winner for Best New Home Loan and Low Cost Home Loan 2022. 18 years and over.
- variable rate
- 2.24% p.a.
- comparison rate
- 2.24% p.a.
- variable rate
- 2.24% p.a.
- comparison rate
- 2.24% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes - offset sub account
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,500,000
- 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 Variable Home Loan
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Basic Home Loan
Owner Occupier, LVR<60%, Principal & Interest
variable rate
comparison rate
Initial monthly repayment2.39% p.a.2.39% p.a.Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
CompareCompareBasic Home Loan
Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
- variable rate
- 2.39% p.a.
- comparison rate
- 2.39% p.a.
- variable rate
- 2.39% p.a.
- comparison rate
- 2.39% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $5,000,000
- 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 Basic Home Loan
-
Variable Home Loan Special
Owner Occupier, Principal & Interest, LVR <80%
variable rate
comparison rate
Initial monthly repayment1.99% p.a.2.02% p.a.Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st May 2022.
CompareCompareVariable Home Loan Special
Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st May 2022.
- variable rate
- 1.99% p.a.
- comparison rate
- 2.02% p.a.
- variable rate
- 1.99% p.a.
- comparison rate
- 2.02% p.a.
- Upfront fees
- $530
- Ongoing fees
- $0.00
- Discharge Fee
- $500.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - $10 per month
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- Special rate applies to home loan applications submitted by 31 May 2022.
Read our Mozo Review to learn more about the Variable Home Loan Special
* 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, loan amount and term entered. 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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