Which home loan lenders have passed on the RBA rate cut?
With the Reserve Bank of Australia cutting the official cash rate to a record low 2% at yesterday’s May board meeting, the question on everyone’s lips is - will home loan lenders follow suit? <<Update: To see which lenders have reduce rates after the RBA cut the official cash rate to 1.75% at the May 2016 board meeting, see here>>
Out of the big four, so far ANZ has been the first to pass on the full rate cut, reducing its variable retail home loans by 0.25%, starting from Friday, 8 May. A quick turnaround considering past RBA rate cuts have shown many lenders take weeks to implement a rate reduction.This will bring ANZ’s standard variable interest rate down to 5.38%, which the big bank says will save customers about $60 per month or $750 per year for the average home loan of $300,000.
The Commonwealth Bank has also passed on a rate cut to customers, however didn’t go as far as offering the full 25 basis point rate reduction, instead dropped its Standard Variable Rate (SVR) mortgage by 0.20% to 5.45%.
<<Update>> The National Australia Bank has also decided against passing on the full rate cut, instead reducing its Standard Variable Rate by 0.20% to 5.43%.
A handful of other lenders have dropped their rates by the full 0.25%, including:
- ING DIRECT from Friday 15 May, bringing the ING DIRECT Mortgage Simplifier to just 4.72%.
- ME Bank cutting its Standard Home Loan variable interest rate to 4.88% and its member package rate to 4.68% for home loans up to $500,000, starting 22 May.
- Loans.com.au reduced its Dream Home Loan Essentials to 3.98% effective immediately. However, the offer is only for new loans and applications already in progress. The lender says it will consider a rate cut for existing customers in the coming days.
- bankmecu will slash its standard variable home loan rate by 25 basis points on 15 May to 5.09%.
- Greater Building Society cut its Ultimate Home Loan (packaged variable loan) to 4.24%, its Great Rate (basic variable loan) rate to 4.64% and its standard variable rate to 5% effective immediately for new home loans. However, existing customers will have to wait until May 15.
Mozo will be keeping a close eye on the market and updating our naughty or nice table to show you the providers that have passed on the full RBA rate cut.
Home loan comparisons on Mozo - last updated 20 April 2024
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Unloan Variable
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interest rate
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Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
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Initial monthly repayment6.01% p.a. variable6.14% p.a.Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
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Flex Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR <60%
interest rate
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Initial monthly repayment5.99% p.a.
fixed 3 years6.37% p.a.Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
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Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
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- 5.99% p.a.
fixed 3 years
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- 6.37% p.a.
- interest rate
- 5.99% p.a.
fixed 3 years
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- 6.37% p.a.
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- $250
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Discounted Home Value Loan
Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
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Initial monthly repayment6.09% p.a. variable6.09% p.a.Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
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Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
- interest rate
- 6.09% p.a. variable
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- 6.09% p.a.
- interest rate
- 6.09% p.a. variable
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- 6.09% p.a.
- Upfront fees
- $0
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- $0.00
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- $300.00
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- yes - free
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Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
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Initial monthly repayment6.14% p.a. variable6.16% p.a.Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
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Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.16% p.a.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.16% p.a.
- Upfront fees
- $250
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
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- yes - free
- Redraw facility
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- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $80,000
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- $5,000,000
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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. 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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