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.
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|
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|
|Bank of Melbourne||-0.20%||-0.20%|
|Reduce Home Loans||-0.20%||-0.25%|
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
Smart Home Loan 80
Home Value Loan
Celebrate Variable Home Loan
UHomeLoan - Discount Offer
Back to Basics Special
^See information about the Mozo Experts Choice Home Loans Awards
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