Get App
CBA and Westpac the first big banks to announce rate cut
12 Aug 2025
Australia’s largest banks, CBA and Westpac, have today made the right call for their variable home loan customers, confirming they will both pass the RBA’s 0.25 percentage point cut in full.
As a result, both banks’ new lowest variable rates will drop to 5.34%.
CBA’s rates come into effect on Friday 22 August, while Westpac borrowers will have to wait until Tuesday 26 August.
← Mobile/tablet users, scroll sideways to view full table →
| CBA’s lowest variable rates from | |||
|---|---|---|---|
| Old lowest rate | New lowest rate | Change | Date effective |
| 5.59% | 5.34% | -0.25% | Friday 22 Aug |
Note: Lowest rate is for owner-occupiers paying principal and interest on its digital-only mortgage.
| Westpac’s lowest variable rates from | |||
|---|---|---|---|
| Old lowest rate | New lowest rate | Change | Date effective |
| 5.59% | 5.34% | -0.25% | Tues 26 Aug |
Note: Lowest rate is for owner-occupiers paying principal and interest on its digital-only mortgage.
Which other banks have moved so far?
In addition to CBA and Westpac, the following banks have also announced rate cuts:
- Macquarie Bank is cutting both mortgage and savings rates on Friday 15 August by 0.25% points.
- unloan, which is backed by CBA, has cut mortgage rates by 0.25% points, effective immediately.
- Athena has cut rates by 0.25% points, effective immediately.
Borrowers can keep track of what their bank has announced by checking our Rate Tracker.
What about savings rates?
Westpac has announced the rate on its popular ‘Life’ account will drop by 0.25 percentage points to a maximum rate of 4.25%, provided savers meet the monthly terms and conditions.
On the bank’s eSaver account, the base rate will remain the same at 1.00% while the 5-month maximum rate will drop to 4.25%.
CBA has not made any announcement on savings rates.
Canstar’s data insights director, Sally Tindall says, “CBA and Westpac, have made the right decision today for their variable mortgage customers.”
“After 13 cash rate hikes – four of which were doubles – borrowers need this extra relief.
“This move from Australia’s two biggest banks puts pressure on the entire mortgage market to do the right thing and pass this RBA cut on in full to variable customers.
“After three cuts this year, many borrowers will finally start to feel some breathing room, even if repayments are still far higher than they were two years ago.
“Many smaller banks are unlikely to make their post-RBA announcement straight away, so keep an eye on what your lender announces and make sure you get the rate cut you deserve.
“Rate cuts are a double-edged sword and while CBA has come out of the blocks announcing the good news for borrowers, the bank’s savings rates are still under review, which is disappointing.
“Millions of Australians rely on the interest they earn from their savings. It’s important for banks to be upfront on what’s happening with these rates, even if the news isn’t what their customers want to hear.
“Macquarie and Westpac should be congratulated for telling their savings customers what their new rates will be straight away.”
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
