The 0.5% club: These 6 home loan lenders passed on the full RBA cut twice

It’s been nine days since the RBA decided to drop the official cash rate to a record low 1.00% and since then a large number of home loan providers have signalled their intention to reduce rates on their respective variable mortgage offers. 

However, unlike the response to the RBA’s June rate cut, many lenders have made the decision not to pass on the 0.25% cut in full.

In fact, at the time of writing, just six home loan providers^ in the Mozo database have dropped, or indicated their intention to drop, their variable rate offers by 0.25% this month - totalling 0.5% since June.


0.25% cut dateSelect Variable OfferCurrent Rate
AthenaAlready appliedVariable Home Loan3.09% (3.09% comparison rate*)
Greater Bank29 JulyGreat Rate Home Loan3.57% (3.59% comparison rate*)
HomestarAlready appliedStar Essentials Home Loan2.99% (2.99% comparison rate*)
Newcastle Permanent29 JulyReal Deal Home Loan3.49% (3.49% comparison rate*)
RACQ BankAlready appliedMortgage Saver Special3.19% (3.19% comparison rate*)
UBank2 AugustUHomeLoan - Discount Offer3.34% (3.34% comparison rate*)

First off the block were online lenders Athena and Homestar who both passed on the full 0.25% cut just minutes after the RBA made their announcement. 

Queensland-based lender RACQ Bank has also already made a 25 basis point cut to their variable rate offers, while Greater Bank (29 July), Newcastle Permanent (29 July) and UBank (2 August) will all make adjustments in the coming weeks. 

Of the major banks, ANZ proved the only lender to pass on the full 0.25% cut this month, though this is perhaps unsurprising after they were roundly pilloried for only cutting variable rate home loans by 0.18% following the June RBA decision.   

Meanwhile both the Commonwealth Bank and NAB dropped variable rates by 0.19%, while Westpac chose to reduce its own variable rates by 0.20% - making it the only major bank not to pass on at least one of the rate cuts in full.

June Rate CutJuly Rate CutTotal of both cuts
ANZ0.18%0.25%0.43%
Commonwealth Bank0.25%0.19%0.44%
NAB0.25%0.19%0.44%
Westpac0.20%0.20%0.40%

How much could a larger rate cut save mortgage holders? 

So when it comes down to it, just how much valuable would a 0.10% or 0.20% difference in rate reduction be for a borrower?

Let’s use Simon and Elle as an example. The couple have a $400,000 mortgage, an LVR of 80% and are going to be making principal and interest repayments on the loan for the next 25 years. They also had a 4.00% interest rate before the double RBA rate cuts.  

According to the Mozo home loan repayments calculator, if Simon and Elle’s lender dropped their variable home loan rate in line with the RBA’s full 0.50% basis points cut - so a new rate of 3.50% - the couple’s repayments would drop to $2,002 per month.  

However, if their lender decided to hold part of that cut back - passing on 0.40% instead - their new rate would be 3.60% and their monthly repayments would total $2,024 instead.

While that might not seem much, that extra $22 per month actually works out at $6,455 in additional interest over the 25 year loan period. 

RELATED: Back to back cuts: The RBA drops official interest rates to 1.00%

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 473 home loans.
Last updated 23 June 2024 Important disclosures and comparison rate warning*
  • 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.

  • 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.

  • 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.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • 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.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

Paying over the odds with your current lender? Orchestrate a rate cut of your own by checking out some of the hot refinancing deals below, or head over to Mozo’s home loan comparison hub for even more options.   

^As of publishing date, there are still a handful of home loan providers in the Mozo database who did cut variable rate offers by 0.25% following the June RBA decision, but are yet to make an announcement following the July decision.

* 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.