March emergency RBA cut: Which banks have cut home loans and where do rates sit?

By Tom Watson · · 6 min read
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Last Updated: 2:56pm, March 27

How quickly things change. It’s been just over two weeks since the Reserve Bank of Australia last cut interest rates, but here we are again. 

In a statement released this afternoon, the RBA announced a 0.25% cut to the official cash rate amid the fallout from COVID-19 and the severe impact the virus is having on the Australian economy.

The decision means that the official cash rate now sits at an all time low of 0.25%. 

“The coronavirus is first and foremost a public health issue, but it is also having a very major impact on the economy and the financial system,” said Governor Philip Lowe in a statement released this afternoon.

“The result has been major disruptions to economic activity across the world. This is likely to remain the case for some time yet as efforts continue to contain the virus.”

Following today’s announcement many Australian households will likely be wondering about the impact the latest cut will have on their home loan rates, particularly given the financial uncertainty that many Australians are already facing, or are likely to face in the coming months. 

Earlier in the month we saw a surprisingly large number of lenders, including all four big banks, move to pass on the 25 basis point cut in full to their customers. But the big question this time around will be whether or not lenders have the capacity to pass the rate cut on in full. 

To help you keep up to date, we’ll be regularly updating the table at the bottom of this article with the latest rate announcements from a number of lenders. 

How low have mortgage interest rates fallen?

With five reductions to the official cash rate since June 2019, it perhaps won’t come as a surprise to learn that mortgage rates have also rapidly declined. 

According to our most recent figures, the average interest rate in the Mozo database for a  $400,000 owner occupier home loan (80% LVR) is now hovering around 3.50%. To put that in comparison, back in May 2019 there were just a handful of lenders in the Mozo database with rates below that mark.

In fact, 86% of lenders in our database now have a variable or fixed home loan offer with an interest rate below 3.00%

Of course, today’s RBA cut means that we’ll likely see a further reduction in rates, but in the meantime here’s a snapshot.

Variable rateLender and loan
2.44% (2.45% comparison rate*)Reduce Home Loans - 
Low Rider Home Loan
2.44% (2.49% comparison rate*)Homestar - Star Essentials Home Loan
2.47% (2.53% comparison rate*)Well Home Loans - Well Balanced
2.52% (2.52% comparison rate*)Reduce Home Loans - Rate Lovers Variable Home Loan
2.54% (2.54% comparison rate*)Pacific Mortgage Group - Standard Variable Home Loan

Which lenders have cut variable rates? 

To help you keep up to date with all the latest movements following today’s RBA rate cut, we’ll be updating the table below as banks and other lenders announce their respective rate cuts in the coming days.

March 19March 3October 1
86 400TBD-0.25%N/A
AMP0.00%-0.25%-0.15%
ANZ-0.15%-0.25%-0.14%
Athena0.00%-0.25%-0.25%
Bank Australia0.00%-0.25%-0.10%
Bankwest0.00%-0.25%-0.13%
Bendigo Bank0.00%-0.25%-0.15%
BOQTBD-0.17%-0.10%
CitiTBD-0.25%-0.15%
CommBank0.00%-0.25%-0.13%
CUATBD-0.25%-0.13%
Greater Bank0.00%-0.25%-0.14%
Heritage Bank0.00%-0.20%-0.15%
Homestar-0.10%-0.25%-0.25%
HSBC0.00%-0.25%-0.15%
ING0.00%-0.25%-0.15%
loans.com.auTBD-0.25%-0.15%
Macquarie0.00%-0.25%-0.15%
ME0.00%-0.25%-0.15%
NAB0.00%-0.25%-0.15%
Newcastle Permanent0.00%-0.25%-0.13%
RACQ BankTBD-0.17%-0.15%
Reduce Home Loans-0.10%-0.25%-0.20%
St.George0.00%-0.25%-0.15%
Suncorp0.00%-0.25%-0.15%
Tic:Toc0.00%-0.25%-0.15%
UBankTBD-0.25%-0.25%
Virgin MoneyTBD-0.17%-0.15%
Westpac0.00%-0.25%-0.15%

Which lenders have cut fixed rates?

Aside from variable rates, we'll also be keeping track of the notable fixed rate changes as they come in.

Lender Fixed rate adjustment
ANZAnnounced a 2 year fixed rate of 2.19% for owner occupiers making principal and interest repayments. 
CommBankAnnounced a 0.70% cut across 1, 2 and 3 year fixed loans. From May 1, these fixed offers will sit at 2.29% for new and existing owner occupiers.
INGAnnounced new owner occupier fixed rates as low as 2.09% (3.77% comparison rate*) for a 2 year term. 
NABAnnounced a cut of up to 0.60% on fixed loans. From March 25, 2 and 3 year fixed owner occupier loans will sit at 2.29%. 
Tic:TocAnnounced new 1-3 year fixed rate home for owner occupiers as low as 2.22%.
Reduce Home LoansAnnounced new fixed home loan rates for owner occupiers as low as 2.09% (up to 2.68% comparison rate*) for 1-3 year terms.
Well Home LoansAnnounced new owner occupier fixed home loan rates as low as 2.09% (2.41% comparison rate*) for 3 year terms
WestpacAnnounced 2.29% fixed rates on 1, 2 and 3 year terms with the Premier Advantage Package which is available to owner occupier customers. 

Time to refinance your home loan to a better rate? Start your search by comparing some of the hot home loan deals in the table below, or for an even greater range of competitive offers head on over to the dedicated Mozo home loan comparison table

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 27 July 2024 Important disclosures and comparison rate warning*

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  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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. 40% Deposit required.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    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.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get 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.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    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.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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. 40% Deposit required.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* 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.

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Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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