How have ANZ, CommBank, NAB and Westpac responded to the March RBA rate cut?

The RBA decided to reduce official interest rates today, and mortgage holders the country over are waiting for word on how their banks and lenders will respond. Thankfully, it looks like they won’t have to wait for too long.

Among the major banks, Westpac was the first to make a move, announcing it will be cutting 0.25% across its range of variable rate home loans just a few short minutes after the RBA’s decision. 

The news comes as a surprise to many, especially considering Westpac passed on only 0.15% the last time the RBA cut rates in October 2019. But Chief Executive, David Lindberg said the big bank was swayed by the risks currently plaguing the economy. 

“We recognise that COVID-19 will have a direct impact on our nation’s economy and we want to provide additional support to our small business and home loan customers at this unprecedented time,” he said.

CommBank, NAB and ANZ follow suit

News of the other major banks’ decisions came not too long after, with Commonwealth Bank and NAB taking a page from Westpac’s book and cutting rates by 0.25% for both owner occupiers and investors. 

“Some choose to pay down their loans faster while others are choosing to reduce monthly repayments to help with the household budget. Our role is to offer our customers choice,” said NAB Chief Customer Officer Consumer Banking, Mike Baird.

ANZ was the last of the big four to fall in line, announcing it will be slashing 0.35% off variable rates for investors making interest only repayments, and 0.25% off variable rates for all other home, investment and line of credit loans.

All four major banks’ standard variable rate change decisions for eligible owner occupiers are detailed below:

BankCutEffective date
ANZ0.25%13 March
Commonwealth Bank0.25%24 March
NAB0.25%13 March
Westpac0.25%17 March

Online lenders quick to move

While the big banks were quick to announce cuts, they face stiff competition from online lenders, who have been scrambling over one another in a race to reduce rates. Considering many already offered rates below the 3.00% mark, their home loans suites are set to become much more attractive.

Athena, Homestar and 86 400 all sprang into action within minutes of the RBA’s decision, announcing they will be slashing variable home loan rates by the full 0.25%. They were followed by Reduce Home Loans and loans.com.au, who also opted to pass on the full cut.

“After launching our home loan products late last year, this has been our first opportunity to address a rate cut. As an agile bank, we can make the obvious and simple decisions quicker to put money back in our customers’ pockets,” said 86 400 CEO, Robert Bell.

Among the top value home loans in our database, online lenders are well represented. Currently, Athena Home loans offers rates starting at 2.59% p.a. (2.55% p.a. comparison rate*), Homestar offers 2.44% p.a. (2.47% p.a. comparison rate*), and Reduce Home Loans offers 2.44% p.a. (comparison rate 2.47% p.a.*).

As decisions from the rest of the market continue to trickle through, make sure you browse our list of home loan lender decisions, which we’ll be updating periodically.

Home loan comparisons on Mozo - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
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    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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  • placeholder
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.95% p.a.
    fixed 3 years
    2.27% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Comes with Visa debit card and the ability to use digital wallets; Apple and Google Pay. 25% deposit required.

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  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    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.

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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, loan amount and term entered. 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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