Has your home loan lender passed on the May RBA rate cut?
<<UPDATE>> The RBA has slashed rates even further to 1.50%, at its August board meeting. See which home loan lenders have passed on rates here.
After the Reserve Bank’s decision to cut rates to a record low 1.75% today, all eyes are on home loan lenders to see which ones will follow suit and pass on rate cuts to customers.
Of the big four, NAB was quick to pass on the full rate cut on its variable rate home loans, starting from Monday 16th May. This brings the standard variable home loan offer interest rate down from 5.60% p.a. to 5.35% p.a. for owner occupiers, and from 5.75% p.a. to 5.50% p.a for investors.
NAB Group Executive Personal Banking Gavin Slater said that NAB’s decision “balances the needs of our home loan customers with our shareholders.”
The Commonwealth Bank and Westpac also announced plans to reduce interest rates on standard variable rate home loan products by the full 0.25%. CommBank's reduction will start from the 20th May, while Westpac's changes will come into effect on the 23rd May.
That leaves ANZ as the only one of the big four not passing on the full interest rate cut. Instead, it is decreasing standard variable rate home loan products by 0.19%, dropping its standard variable rate to 5.37%, as of the 13th May.
Suncorp joined ANZ as one of the lenders not passing on the full rate cut, instead choosing to lower home loan interest rates by 0.20% for owner occupiers and 0.15% for investors.
AMP and Bendigo Bank have each reduced rates by 0.20%, dropping AMP's standard variable rate home loan to 5.53% as of May 20th and Bendigo Bank variable rate residential home loan to 5.48%, effective 30th May.
Update: ME announced it would reduce rates by 0.05% putting its Flexible Home Loan variable rate at 5.03%, effective from the 16th May. The non-major lender cited funding cost pressures in the decision not to cut rates by the full 0.25%, but pointed out that it's rates were still well below those of the big four.
Other lenders passing on the full 0.25% interest rate cut to home loan customers include:
- Bank of Queensland - bringing the standard variable home loan interest rate down from 5.86% to 5.61%, effective from the 18th May
- UBank - reducing the UHomeLoan from 4.32% to 4.07%, as of the 16th May
- St.George - dropping the standard variable home loan interest rate from 5.69% to 5.44%, from the 23rd May
- Newcastle Permanent - cutting the Real Options Home Loan offer from 5.30% to 5.05% as of the 19th May
- Greater Bank - reducing the standard variable home loan interest rate down to 4.75%, from 16th May
- RAMS - dropping the full feature home loan from 5.55% to 5.30% from the 23rd May
- ING Direct - bringing the Mortgage Simplifier home loan down from 4.90% to 4.65% as of 20th May
- CUA - dropping the standard variable rate loan from 5.05% to 4.81%, effective 19th May
- QPCU - reducing the standard variable interest rate from 5.29% to 5.04% from 23rd May
- Update: Yellow Brick Road - introducing its lowest variable interest rate ever, reducing rates on the Rate Smasher offer from 4.07% to just 3.82%, effective immediately for new loans or from 25th May for existing.
Mozo will be watching the market to see which lenders are being generous toward their customers. Keep an eye on our naughty or nice table to see which other providers have passed on the RBA rate cut.