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NAB and ANZ join peers in passing on RBA cut to borrowers
13 Aug 2025
NAB and ANZ have rounded out the big four banks in confirming they’ll pass on the RBA’s 0.25 percentage point cut in full.
ANZ will be passing on the cut on 22 August, alongside CBA.
NAB has broken its practice of passing on RBA rate changes 10 days after a cash rate decision, by announcing it will implement the cut in 13 days on Monday 25 August.
Westpac has announced it will be passing it on in 14 days on 26 August, which is standard practice for the bank.
The new lowest big four bank variable rate will be 5.34%, offered by both CBA and Westpac on their digital-only loans.
Only Westpac has announced its savings rate cuts, with the other three banks leaving them out of their announcements.
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| Big banks’ new lowest variable rates following RBA cut | |||
|---|---|---|---|
| Bank | New lowest variable rate | Change | Date effective |
| CBA | 5.34% | -0.25% | 22 August 2025 |
| Westpac | 5.34% | -0.25% | 26 August 2025 |
| NAB | 5.69% | -0.25% | 25 August 2025 |
| ANZ | 5.50% | -0.25% | 22 August 2025 |
Note: CBA, Westpac and ANZ lowest rates are for their digital-only home loans. Westpac and ANZ’s lowest rates are for refinancers only.
Which other banks have moved so far?
In addition to the big four banks, 16 lenders have announced they will pass on the rate cut in full to variable borrowers, including Macquarie Bank, Westpac subsidiaries, Teachers Mutual Group, RACQ, unloan and Athena.
Borrowers can keep track of what their bank has announced by checking Canstar’s Rate Tracker.
How low will variable rates now go?
Canstar.com.au estimates:
- 5.54% will be the new average owner-occupier variable rate.
- 5.80% will be the new average investor variable rate.
- 5.34% will be the lowest big four bank variable rate.
- 5.25% and under will be an ultra-competitive variable rate, offered by more than 30 lenders.
The lowest variable rate is already 4.99% from Police Credit Union, however, other lenders may choose to join them in the under 5% club after implementing this latest cut.
What would the relief look like for those dropping their minimum repayments?
For a borrower with a $600,000 mortgage at the start of the cuts, a 0.25 percentage point rate cut today would see their minimum monthly repayments drop by a further $89.
However, the total drop across the February, May and August cuts would be $272.
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| Impact of RBA rate cuts on minimum monthly repayments | |||
| Loan size at start of cuts | Cut in Aug | Across all 3 cuts (Feb, May, Aug) | New repayments |
| $500,000 | -$74 | -$226 | $3,091 |
| $600,000 | -$89 | -$272 | $3,709 |
| $750,000 | -$111 | -$340 | $4,636 |
| $1m | -$148 | -$453 | $6,181 |
| Source: Canstar.com.au. Notes: based on an owner-occupier paying principal and interest with 25 years remaining in Feb 2025 at the RBA average existing customer variable rate. Calculations assume the banks pass on each cut in full to existing variable customers the month after. | |||
Are more cash rate cuts on the cards?
With three more RBA Monetary Policy meetings remaining for the year in September, November and December, at least one further cash rate cut is possible, but will be data dependent.
All four big banks currently expect the next RBA move will be a cut, but it won’t come right away, with each expecting the RBA to hold at its September meeting, followed by a cut at the November meeting.
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| Current big four bank cash rate forecasts | |||
| Bank | Next cut | Total no. cuts to come in cycle | Cash rate at end of cutting cycle |
| CBA | November | 1 | 3.35% |
| Westpac | November | 3 | 2.85% |
| NAB | November | 2 | 3.10% |
| ANZ | November | 1 | 3.35% |
Canstar.com.au’s data insights director, Sally Tindall says, “This latest cut will shave another $89 off the monthly repayments for a typical $600,000 mortgage, however, over the three cuts we’ve now had this year, the savings tally up to $272.”
“For an average family, that’s a trip around the supermarket or a fair chunk of the winter electricity bill, back into their household budget every single month.
“It’s a relief to see all four big banks announce they’ll be passing on the cut in full to their variable borrowers. However, NAB and Westpac customers could be annoyed they have to wait that little bit longer to get this relief.
“While it typically only comes down to a handful of dollars, any delay in rate cut relief can be frustrating.“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.
“We’ve got live updates on our rate tracker page, which follows the announcements from banks big and small.
“Don’t just check your bank is passing on this latest cut to your mortgage, check in on your rate as well.
“At this point, every variable rate – whether for owner-occupiers or investors – should start with a ‘5’. There’s really no reason to be paying more than this.
“Once this rate cut filters through, we expect there’ll be more than 30 lenders offering rates of 5.25 per cent or less – that’s where owner-occupiers should be aiming.
“Finally, there’s one question you need to ask yourself and that’s whether you want to hold or drop your monthly repayments? While banks that have announced they’re cutting variable rates will automatically do this within one to three weeks of an RBA cut, many don’t drop your direct debit repayments unless you ask them.
“Keeping those repayments higher is well worth considering because that means the extra amount you were paying in interest will get reinvested back into your mortgage, however, if you’re struggling to pay other bills you might need that cash in your bank account.”
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
