Which banks have cut home loan interest rates so far?
On Tuesday, the Reserve Bank decided to decrease the cash rate once more, bringing it down to a record low 1.00%. Since then, attention has turned to banks and lenders to see how much of the cut will flow through to home loan customers.
And while they haven’t been as proactive as they were following June’s RBA cut, we’ve still seen plenty of action. 22 lenders have made moves since Tuesday, with eight opting to pass on the full cut.
Smaller lenders shine
First out the gate were online lenders Athena and Homestar. Given that many non-bank lenders compete on rate, there was an expectation that these two would continue their cut streak in the lead-up to Tuesday’s decision, and they didn’t disappoint. Both passed on the full 0.25% cut to home loan customers without delay.
Athena’s variable rate home loan now sits at 3.09% p.a. (3.05% comparison rate*), while rates for Homestar’s Star Essentials Home Loan start at a super low 2.99% p.a. (2.99% p.a. comparison rate*).
ANZ saves face, passes on full cut
Among the Big 4 banks, only ANZ passed on the full cut, likely looking to restore a bit of goodwill after the blowback it received for withholding so much last time.
The reductions will come into effect 12 July, and will apply to both home and investment loans. Owner occupiers paying principal and interest will soon be looking at variable rates in the range of 4.93% p.a. (5.23% p.a. comparison rate*).
As for the rest of the major banks, they didn’t give us much reason to celebrate. NAB and Commonwealth Bank passed on only 0.19%, while Westpac reduced rates by 0.20% for owner occupiers and 0.30% for investors making interest only repayments.
On the decision, Westpac Chief Executive, David Lindberg said, “It’s critical that we continue to carefully manage our business in a sustainable way for the longer term and take into account the diverse needs of all our stakeholders.”
Who else has made a move?
Along with ANZ, Athena and Homestar, there are a handful of lenders that have passed on the full cut to variable home loan customers. As of writing, these are:
| Amount cut | Amount cut in June | |
|---|---|---|
| ANZ | -0.25% | -0.18% |
| Athena | -0.25% | -0.25% |
| Firstmac | -0.25% | -0.20% |
| Greater Bank | -0.25% | -0.25% |
| Homestar | -0.25% | -0.25% |
| loans.com.au | -0.25% | -0.20% |
| Newcastle Permanent | -0.25% | -0.25% |
| State Custodians | -0.25% | -0.18% |
The lenders that have made reductions short of the full cut are much more numerous. As of writing, they are:
| Amount cut | Amount cut in June | |
| Aussie | -0.20% | -0.25% |
| Bank of Melbourne | -0.20% | -0.20% |
| BankSA | -0.20% | -0.20% |
| Bankwest | -0.19% | -0.25% |
| Commonwealth Bank | -0.19% | -0.25% |
| ING | -0.20% | -0.25% |
| Macquarie | -0.20% | -0.25% |
| ME Bank | -0.15% | -0.25% |
| NAB | -0.19% | -0.25% |
| Reduce Home Loans | -0.20% | -0.25% |
| RAMS | -0.20% | -0.20% |
| St George | -0.20% | -0.20% |
| Suncorp | -0.19% | -0.20% |
| Westpac | -0.20% | -0.20% |
For a more up-to-date look, make sure to check in with our Naughty or Nice table, which we’ll be updating each time we get news of key lenders’ decisions.
And if your lender has been slow to make a move, or has withheld more of the cut than you’re comfortable with, you’ll be glad to hear there are plenty of appealing options on the market right now. Below is a selection, but if you’re after more, be sure to visit our variable rate home loan comparison page.
Home loan comparisons on Mozo - page last updated October 27, 2020
Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
Sorted by:
Mozo Order
- loans.com.au
2.48% p.a.
2.50% p.a.
loans.com.auSmart Home Loan 80
Owner Occupier, Principal & Interest
2.48% p.a.
2.50% p.a.
A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020.^ You'll need to be borrowing $1 million or less and have at least a 20% deposit required.
Go to siteCompare - HSBC
2.59% p.a.
2.60% p.a.
HSBCHome Value Loan
Owner Occupier, Principal & Interest
2.59% p.a.
2.60% p.a.
No ongoing fees. Free extra repayments and online redraw. Mozo Experts Choice Split Home Loan 2020^
Go to siteCompare - Athena
2.34% p.a.
2.34% p.a.
AthenaCelebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
2.34% p.a.
2.34% p.a.
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
Go to siteCompare - UBank
2.49% p.a.
2.49% p.a.
UBankUHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
2.49% p.a.
2.49% p.a.
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
Go to siteCompare - Suncorp
2.68% p.a.
2.69% p.a.
SuncorpBack to Basics Special
LVR<80%, Owner Occupier, Principal & Interest
2.68% p.a.
2.69% p.a.
No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more. Get a $2,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan of $250k+. T&Cs & eligibility criteria apply.
Go to siteCompare
^See information about the Mozo Experts Choice Home Loans Awards
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