RBA rate‑cut watchlist: fastest movers and who's leavings savings on the table

With a Reserve Bank of Australia (RBA) cash rate cut all but locked in for Tuesday 12 August, the race is on to see which lenders will deliver relief to borrowers first – and which will drag their feet. A 0.25 percentage point cut could save the average mortgage holder hundreds of dollars a year, but history shows not every bank passes it on quickly, or in full.

By analysing how lenders responded to the May 2025 rate cut – looking at both the speed of their announcements and the size of the savings they handed over – Mozo has built a rate‑cut leaderboard that reveals the fastest movers, the slow walkers and those most likely to keep a slice of the RBA’s cut for themselves.

Fastest movers from the last rate cut

The table below shows how quickly lenders passed on variable home loan rate reductions, measured from the RBA’s most recent rate cut on 20 May, 2025.

Big Four banks rate cut timing

While many smaller lenders responded swiftly to the May rate cut, the Big Four banks were noticeably slower to pass on the savings. Westpac was the slowest of the group, taking 14 days to act. None of the majors matched the same‑day moves from Unloan or Athena. Mozo’s analysis shows most lenders typically pass on cuts by the second Friday after an RBA decision, or during the week that follows.

Who is likely to keep a slice of the RBA’s cut?

While the RBA cash rate cuts are intended to provide relief to borrowers, lenders are not legally required to pass on the full cut. A lender's decision to pass on a cut in full, in part, or not at all can be influenced by factors such as profit margins and competition. In some cases, lenders may retain a portion of the cut to boost profitability and free up cashflow to invest in other economic activities.

Following the May 2025 RBA rate cut, all lenders in the Mozo database, including the Big Four banks, passed on the full 0.25 percentage point reduction. Historically, some lenders have been more inclined to hold back a percentage of rate cuts, especially when the RBA cuts rates rapidly and frequently. For example, after the February 2025 rate cut, Virgin Money was a notable exception, holding rates in place.

The real cost of rate cut delays

A 0.25% rate cut can lead to significant savings over time – but only if passed on promptly. Delays can cost borrowers hundreds or even thousands over the life of a loan.

The RBA typically adjusts the cash rate multiple times a year, with periods of both high volatility and long pauses. For instance, during 2022–2023, the cash rate rose 13 times. In contrast, it held steady from late 2016 to mid-2019.

Over a 30-year loan term, it’s reasonable to expect dozens of rate changes. Based on past trends, borrowers could face anywhere from 50 to over 100 movements – up or down – across the life of their mortgage.

Rate cut savings

Based on Mozo's calculations, using RBA lending rate data, the variable rate for a home loan with an 80% LVR at approximately 5.85% p.a., we can see the impact of a rate cut. For a 25-year, $660,000 loan, the monthly repayment is about $4,192. 

When a 0.25% rate cut is passed on, the interest rate drops to 5.60% p.a. This lowers the monthly repayment to approximately $4,092, resulting in a monthly saving of $100. This saving can make a real difference to a household budget, whether it's used for other expenses or to pay down the loan faster.

The cost of a delay

Any delay in applying a rate cut means borrowers continue to pay the higher interest rate, directly costing them money. The monthly saving of $100 breaks down to about $3.29 per day. 

A 10-day delay costs the borrower around $32.89 in forgone savings, while a 14-day delay costs about $46.03. While these figures might seem small, the cost can easily accumulate over the life of the loan, especially if multiple rate cuts are delayed. This highlights why it's so important for lenders to pass on rate changes swiftly.

What can borrowers do now?

1. Check your lender’s track record: If you’re with a slow mover, you may face delays or miss out on the full benefit of rate cuts.
2. Contact your lender: Ask if they can offer you a more competitive rate — especially if you’ve seen better deals elsewhere.
3. Compare rates on Mozo: Review current home loan rates, fees and features to make sure you're getting value.
4. Consider switching: Refinancing to a lender that regularly passes on cuts quickly and in full could save you thousands over time.

Compare refinance options below