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

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Last updated 18 June 2024 Important disclosures and comparison rate warning*
  • 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.

  • 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.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • 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.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • 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.

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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. 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.

^See information about the Mozo Experts Choice Home Loan Awards

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