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 - last updated January 23, 2021
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
variable rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a.2.47% p.a.A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
CompareCompareSmart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
- variable rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a.
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
variable rate
comparison rate
Initial monthly repayment
2.34% p.a.2.34% 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.
CompareCompareUHomeLoan - Discount Offer
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.
- variable rate
- 2.34% p.a.
- comparison rate
- 2.34% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
variable rate
comparison rate
Initial monthly repayment
2.19% p.a.2.19% 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.^
CompareCompareCelebrate Variable Home Loan
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.^
- variable rate
- 2.19% p.a.
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Basic Home Loan
Owner Occupier, LVR<80%, Principal & Interest
variable rate
comparison rate
Initial monthly repayment
2.64% p.a.2.64% p.a.Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
CompareCompareBasic Home Loan
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
- variable rate
- 2.64% p.a.
- comparison rate
- 2.64% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $749,999
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Back to Basics Special
LVR<80%, Owner Occupier, Principal & Interest
variable rate
comparison rate
Initial monthly repayment
2.54% p.a.2.55% p.a.No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more.
CompareCompareBack to Basics Special
No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more.
- variable rate
- 2.54% p.a.
- comparison rate
- 2.55% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $350.00
- Extra repayments
- Yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Back to Basics Special
^See information about the Mozo Experts Choice Home Loans Awards
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