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

By Tom Watson ·

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

Compare home loans - page last updated October 17, 2020

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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, 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.

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Tom Watson
Tom Watson
Finance journalist

Tom Watson is a financial journalist at Mozo, specialising in fintech, property and business banking. Whether it’s reporting on banking trends or uncovering the latest product innovations, Tom’s mission is to keep our readers up to date with breaking Australian financial news. His work is often sourced in the media and across social media channels. Tom has a degree in Journalism from the University of Technology, Sydney.