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

By Tom Watson · · 5 min read
Fact Checked
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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%

Last updated 23 June 2025 Important disclosures and comparison rate warning*
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    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
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    Initial monthly repayment
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    • Owner occupier
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    Comparison rate
    5.69 % p.a.
    Initial monthly repayment
    $2,773
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    Initial monthly repayment
    $2,773
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  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Initial monthly repayment
    $2,836
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    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • OMG Home Loan

    • Owner occupier
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    • 40% min deposit
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    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.52 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Pre-approval valid for 3 months

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.76 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.77 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Variable Basic Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
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    Interest rate
    5.53 % p.a.
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    Comparison rate
    5.57 % p.a.
    Initial monthly repayment
    $2,848
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    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes

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    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.53 % p.a.
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    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,848
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    • $0 application fee to pay
    • Apply in as little as 15 minutes

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    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 40% min deposit
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    • Redraw available
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    5.53 % p.a.
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  • Basic Variable Home Loan

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  • Offset Home Loan

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    • 40% min deposit
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    • Redraw available
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    5.64 % p.a.
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    Initial monthly repayment
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    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months

  • Flex Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
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    5.64 % p.a.
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^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

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