Mozo Live: RBA lowers cash rate to 3.85% – CBA, NAB, Westpac, ANZ and other providers announce cuts

Today’s RBA interest rate blog is now closed. We’ll be back tomorrow with more rate changes you can follow on our latest live blog.

Bankwest and Suncorp have both confirmed they will slice 0.25% p.a. off their variable home loan interest rates, just hours after the Reserve Bank’s decision.

Both Bankwest and Suncorp will adjust their variable rates on 30 May, and customers will be able to see their updated minimum repayment amount online and in their banking app from 31 May.

The Westpac-owned brands of St.George Bank, Bank of Melbourne and BankSA have each announced a 25 basis point cut to their variable home loan rates, effective from 3 June.

Across each of these banks, the 0.25% p.a. cut will be available for both new and existing home loan customers.

Unlike some of the major banks, St.George, Bank of Melbourne and BankSA will automatically lower their customers’ minimum monthly repayment, provided they’re paying off principal and interest.

On the other hand, the trio of banks also announced changes to deposit interest rates for savers, effective from 30 May.

The banks revealed they would be cutting their bonus rates on the Incentive Saver and Maxi Saver accounts, while the base rates on these accounts will remain unchanged.

If you’re looking for a better savings rate, you can compare high interest savings accounts now.

ANZ will trim 0.25% per annum off its variable home loan interest rates, effective 30 May, 2025.

“The RBA’s second rate cut will be another welcome reprieve for our home loan customers, who have been facing high cost of living pressures for sometime,” said ANZ Group Executive Australia Retail, Maile Carnegie.

The bank acknowledged the resilience of Australians amid economic challenges and emphasised its commitment to supporting customers through tailored solutions. Carnegie encouraged those experiencing financial difficulties to reach out for assistance.

Customers can access resources such as the ANZ home loan repayment calculator and the ANZ budget planner to manage their finances effectively.

Customers of ANZ’s online-only brand ANZ Plus will also receive a 0.25% p.a. cut to their variable home loan rate.

ING Australia will reduce variable home loan interest rates by 0.25% p.a. for all existing customers. This rate cut will take effect 3 June, 2025.

Seeking a better rate? Try comparing home loans to discover savings.

The Commonwealth Bank has been quick to announce it will reduce its variable rate home loans by 0.25% p.a., with the change taking effect from 30 May.

The cut means CommBank’s lowest variable rate is expected to drop to 5.64% p.a. for customers with its Digi Home Loan (and with a loan-to-value ratio of less than 80%).

If you’re a CommBank mortgage holder, keep in mind that the bank will not automatically lower your monthly repayments.

Instead, you will continue to pay the same monthly amount at a new interest rate, which can allow you to pay off your home loan faster.

If you want your mortgage repayments reduced, you’ll need to request it on the CommBank app, through online banking or by visiting a branch.

Macquarie Bank has quickly responded to the RBA’s 25 basis point cash rate cut by lowering its variable home loan rates by the same margin. 

These changes are effective 23 May, 2025.

Ben Perham, head of personal banking, explained the bank’s commitment to helping homeowners benefit sooner. Instead of the usual 10-day wait, Macquarie will implement the rate change within three days, putting more money back in borrowers’ pockets faster.

What’s more, Macquarie automatically adjusts mortgage repayments to reflect the new lower rate – customers don’t need to contact the bank or update anything online. Borrowers can check their updated rates via Macquarie’s online or mobile banking platforms from 23 May.

For those paying principal and interest, repayments will stay the same for the first month after the cut, then adjust. Interest-only payers will see the change immediately in their next repayment.

With cost-of-living pressures rising, Macquarie also offers support for customers struggling with repayments. More details and assistance options are available on their website.

If you’re looking for a better rate, you can compare home loans now.

Westpac has announced it will cut variable home loan rates by 25 basis points for both new and existing customers – effective 3 June, 2025.

While mortgage customers wait for the reduction to kick in, Westpac has also announced cuts to popular savings accounts. From 30 May, the total variable rate on Westpac Life and Westpac eSaver accounts will fall by 0.25 percentage points to 4.50% p.a. Max rate requirements still apply.

Westpac said the combined effect of the changes could save customers with a $500,000 home loan around $178 a month, or $2,136 a year.

Carolyn McCann, Westpac’s acting chief executive for consumer, said the move offers some relief amid ongoing cost-of-living pressures. “We’re ready to support customers and encourage anyone who needs assistance to get in touch,” McCann said.

Customers will be notified directly about the changes and can manage their loan via the Westpac app, website, or by speaking with the bank.

Following the Reserve Bank of Australia’s decision to lower the cash rate to 3.85%, Athena Home Loans has once again acted swiftly to pass on the full 0.25% cut to its variable rate customers – effective immediately.

Athena’s prompt action underscores its commitment to being “fiercely fair”, according to CEO and co-founder Nathan Walsh.

“At a time when the cost of living crisis continues to challenge so many Aussies, acting swiftly to bring some relief to home loaners has to be a priority for all lenders – and it certainly is for Athena,” Walsh said.

The rate cut also applies to loans offered through Athena’s broker partners, including Mortgage Choice Freedom and Apollo by LMG.

Less than a minute after the Reserve Bank’s decision, NAB announced it would be cutting 0.25% p.a. off its standard variable rate home loan, effective from 30 May.

It’s not quite the 50 basis point cut that NAB had predicted, but it means that NAB’s lowest variable rate should soon start at 5.94% p.a.

It’s important to note that NAB won’t automatically reduce its customers’ home loan repayments.

They’ll stay the same amount at the lower rate, which means NAB mortgage holders could chip away at their total loan amount sooner.

If you’re a NAB home loan customer who would like to reduce your repayment amount, you can request a new minimum amount through the NAB app or in a branch.

If you’re looking for a better rate, you can compare home loans now.

Digital provider Unloan has wasted no time passing on the latest RBA rate cut, confirming it has reduced its variable home loan rates.

Unloan home loan rates (effective 20 May, 3:00pm AEST)

The move puts pressure on other lenders to follow suit and offer borrowers relief as expectations grow for faster, more transparent rate changes in a high cost-of-living environment.

The Reserve Bank of Australia (RBA) trimmed the cash rate for the second time in 2025 – down 25 basis points from 4.10% to 3.85%. 

This marks the second rate cut this year, following the first in four years in mid-February, and reflects the central bank's response to easing inflation and global economic uncertainties.

Economists are divided over how many cuts may follow. Meanwhile, all of the Big Four banks forecast further cuts before the end of 2025.

Read our full analysis of the Reserve Bank’s decision and stay tuned to the Live Blog for provider updates and home loan interest rate changes.

Athena Home Loans says it’s ready to move swiftly if the Reserve Bank cuts interest rates at its meeting today, in a bid to deliver relief to mortgage holders sooner rather than later.

The online lender has taken aim at the big banks for dragging their feet on rate cuts, highlighting their slow response to the most recent cash rate decision in February 2025.

"At a time when the cost of living crisis continues to challenge so many Aussies, acting swiftly to bring some relief to home loaners has to be a priority for all lenders – and it certainly is for Athena," Athena Home Loans co-founder and CEO Nathan Walsh said.

"Australia’s major banks have an unreliable track record in passing on in-cycle rate decreases. History shows they take between 10 days to two weeks to pass on a rate cut – a delay which, in February, cost Aussie borrowers approximately $115 million in excess interest."

Athena was among the first lenders to pass on February’s cut in full, slashing variable rates by 0.25 per cent the day of the announcement.

Stay tuned to Mozo’s Live Blog for provider updates and the full list of home loan interest rate changes if the RBA does reduce the cash rate.