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.

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Last updated 25 December 2024 Important disclosures and comparison rate warning*
What are your home loan needs?

Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    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.

  • Promoted

    Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.89 % p.a.
    Fixed 1 year
    Comparison rate
    6.30 % p.a.
    Initial monthly repayment
    $2,867
    Go to site

    Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan.There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply.

  • Promoted

    Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.89 % p.a.
    Fixed 1 year
    Comparison rate
    6.30 % p.a.
    Initial monthly repayment
    $2,867
    Go to site

    Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan.There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • 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.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

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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. 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.

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