How have ANZ, Commonwealth Bank, NAB and Westpac responded to the November RBA cut?

By Niko Iliakis ·

The official cash rate has been reduced once again, this time by 15 basis points to a new record low 0.1% following the Reserve Bank Board’s November meeting yesterday afternoon.

As usual, the ball is now in lenders' courts, with homeowners across the country waiting eagerly for news of changes to their home loan rates.

So, how have Australia’s largest banks - ANZ, Commonwealth Bank, NAB and Westpac - responded to this latest rate cut? We’ve wrapped up their moves below.

Commonwealth Bank

  • 1.00% cut to 4-year Fixed Rate. Rates now sit at 1.99% p.a. (3.66% p.a. comparison rate*)
  • 0.15% cut to 2 and 3-year Fixed Rates. 
  • 0.10% cut to 1-year Fixed Rate. Rates now sit at 2.19% p.a. (4.12% p.a. comparison rate*)
  • No cuts to variable rates

One day after the RBA’s decision, Commonwealth Bank announced it will be making sweeping changes across its range of fixed rate home loans. 

The most headline-grabbing element was CommBank’s decision to cut 4-year rates on its Fixed Rate Home Loan (Wealth Package) by a full percentage point, bringing rates down to 1.99% p.a. (3.66% p.a. comparison rate*).

The changes will come into effect on Wednesday, 11 November. As for variable rates, the bank announced that they would remain unchanged.

CommBank also implemented a moratorium on forced sales, assuring borrowers who have deferred their mortgage that they will be able to remain in their homes until at least September 2021. This applies so long as repayments were made on time in the 12 months prior to the deferral.

Westpac

  • 0.80% cut to 4-year Fixed Rate. Rates now sit at 1.99% p.a. (3.29% p.a. comparison rate*)
  • 0.20% cut to 1, 2 and 3-year Fixed Rates
  • No cuts to variable rates

Westpac also announced cuts across its fixed rate suite, effective Monday 9 November. Once in place, the 4-year rate for its Fixed Options Home Loan (Premier Advantage Package) will drop to 1.99% p.a. (3.29% p.a. comparison rate*).

However, there was no mention of cuts for variable rate home loan customers.

“We recognise it has been a tough time for many Australian households, and these changes mean that customers will be able to access even lower interest rates on our home loan and small business loans,” said Richard Burton, Westpac Acting Chief Executive Consumer Division.

“However, we are in an extraordinary period with the official cash rate at a historical low and unconventional monetary policy measures in place. It is critical we carefully manage interest rate changes, while continuing to do our part in supporting customers and the economy.”

NAB

  • 0.81% cut to 4-year Fixed Rate. Rates now sit at 1.98% p.a. (3.69% p.a. comparison rate*)
  • 0.20% cut to 3-year Fixed Rate. Rates now sit at 2.09% p.a. (3.86% p.a. comparison rate*)
  • 0.10% cut to 2-year Fixed Rate. Rates now sit at 2.09% p.a. (4.00% p.a. comparison rate*)
  • 0.10% cut to 1-year Fixed Rate. Rates now sit at 2.19% p.a. (4.16% p.a. comparison rate*)
  • No cuts to variable rates

NAB’s decision mirrored that of the other big banks, with significant cuts to fixed home loan rates to the exclusion of variable ones. Effective 10 November, 4-year fixed rates for the Tailored Home Loan (Choice Package) will drop to 1.98% p.a. (3.69% p.a. comparison rate*).

NAB Group executive personal banking, Rachel Slade said the decision will provide relief and certainty to homebuyers, while also balancing the interests of deposit and savings customers.

“Australia has had our support from the beginning of this pandemic and we will continue to help our customers through to the other side,” she said.

ANZ

  • 0.40% cut to 5-year fixed rate. Rates now sit at 2.29% p.a. (3.66% p.a. comparison rate*)
  • 0.40% cut to 4-year fixed rate. Rates now sit at 2.29% p.a. (3.77% p.a. comparison rate*)
  • 0.20% cut to 3-year fixed rate. Rates now sit at 2.09% p.a. (3.83% p.a. comparison rate*)
  • 0.20% cut to 2-year fixed rate. Rates now sit at 2.09% p.a. (3.97% p.a. comparison rate*)
  • 0.30% cut to 1-year fixed rate. Rates now sit at 2.09% p.a. (4.12% p.a. comparison rate*)
  • No cuts to variable rates

ANZ was the last of the big four to make its plans known. Late Wednesday, it announced it will be making cuts of up to 0.40% across its range of fixed rate home loans. It was, however, the only major bank which didn't bring at least one headline rate below the 2% mark.

The new rates will be available 5 November, and will let owner occupiers making P&I repayments on the Fixed Rate (Breakfree Package) take advantage of rates as low as 2.29% p.a. (3.77% p.a. comparison rate*) on 4-year terms.

“The RBA and the Government are rightly focussed on supporting the economy by making long-term financing cheaper for small businesses and households during this difficult period. ANZ continues to play its part,” said ANZ Group Executive, Australia Retail & Commercial, Mark Hand.

RELATED: Which banks have cut home loan rates in November?

According to Mozo's banking expert, Peter Marshall, the banks’ decision to not extend relief to variable rate customers doesn’t come as a huge shock.

“Recent profit announcements from two of the big 4 banks have shown sharp falls this year and all banks will be under similar pressures and looking for ways to improve their financial positions," he said.

“Some smaller online lenders have already announced rate reductions though, so for those who are able to switch lenders there are some great rates on offer.”

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