One week on: The latest lenders to pass on the RBA rate cut

Last Tuesday, the RBA reduced official interest rates, setting off a wave of cuts across the variable home loan market.

While the Big 4 announced reductions to variable rates within hours of the RBA’s decision, customers will have to wait an average of 14 days before they take effect. Meanwhile, several smaller lenders jumped at the chance to upstage the major banks by passing on the full cut to customers without delay. 

In the week since, news has generally been positive, with the lenders who’ve opted to pass on the full cut outnumbering those who haven’t. While we wait on a handful of stragglers to announce their plans, let’s take a look at the latest round of lenders to make moves.

UBank doesn’t disappoint, cuts rates by 0.25%

Taking cues from parent company NAB, UBank has announced it will be passing on the full 0.25% rate cut. This will take effect on 28 June, and will apply to both new and existing customers.

Once the changes are in place, UBank UHome Loan (Discount Offer) customers will be treated to a low 3.34% p.a. variable rate (3.34% p.a. comparison rate*). Compared to the previous rate, this could result in savings of $55 a month, or $20,048 over 30 years on a loan of $400,000.

Along with changes to variable rates, UBank will also be decreasing its 1 year fixed Owner Occupier P&I rate to 2.99% p.a. (4.09% p.a. comparison rate*) from June 14.

Aussie, AMP also pass on full cut

Popular mortgage broker Aussie Home Loans will be reducing its range of variable rate home loans for new and existing customers by 0.25%. Most of these changes will come into effect on 21 June, though Aussie Select home loan customers will have to wait until June 27 before they’ll see any changes.

“We’re happy we can put 0.25% back into our customers’ pockets, especially at a time of low wages growth. And with experts predicting further cuts by the RBA this year, rates could drop lower still,” said Chief Customer Officer at Aussie, David Smith.

AMP will be following suit, announcing it will be slashing all its variable home loan products by 0.25%. The changes will be going ahead on 21 June for new customers and 24 June for existing customers.

Bendigo Bank holds back

On Friday afternoon, Bendigo Bank announced it will be cutting variable rates for new and existing owner occupiers and investors making P&I repayments by 0.20%. Managing Director, Marnie Baker said the decision was made with the interests of savers, borrowers and stakeholders in mind.

“We’re operating in a record low interest rate environment. When reviewing any decision on rates, we must also ensure our pricing is competitive with the market, provides the appropriate platform for sustainable growth and enables us to continue to support the hundreds of communities we service nationwide.”

Bendigo Bank also announced that variable rates for interest only home loans will decrease by 0.15% p.a. All changes will come into effect 28 June.

There are still a few lenders who’ve yet to make a move, so be sure to check in with our Naughty or Nice table for updates as they come in. And if the latest batch of cuts has you thinking it’s time to get serious about entering the property market, check out some of the home loan options below, or head to our variable home loan comparison page.

Home loan comparisons on Mozo - rates updated daily

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  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a.
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.

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    Details
  • placeholder
    Basic Home Loan

    Owner Occupier, LVR<80%, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.64% p.a.
    2.64% p.a.

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

    Go to site
    Details
  • placeholder
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.34% p.a.
    2.34% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

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    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.19% p.a.
    2.19% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.

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    Details
  • placeholder
    Low Rate Home Loan

    Owner Occupier, Principal & Interest, <60% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    2.14% p.a.
    2.16% p.a.

    Get smart, flexible and cost-effective rates from homeloans.com.au. Complimentary 100% offset account and free online redraw. Unlimited additional repayments. Zero application or annual fees. Fast online application process.

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    Details
  • placeholder
    Back to Basics Special

    LVR<80%, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.44% p.a.
    2.45% p.a.

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more.

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    Details

*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 Loans Awards

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