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 - last updated January 16, 2021
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