The Reserve Bank board decided to cut the cash rate by 0.25 percentage points to 1.25% in June, marking the first change since the central bank lowered it to 1.5% in August 2016.
The cash rate is the rate of interest the RBA charges on overnight loans to our banks.
Since it has been cut, a number of banks promised to reduce home loan interest rates for borrowers, including the big four – ANZ, Commonwealth Bank, National Australia Bank and Westpac.
Out of the lenders who have moved, 17 banks have passed on the full cut of 0.25 percentage points, at the time of writing.
Commonwealth Bank and NAB said they would pass on the full RBA cut, while ANZ and Westpac will partially reduce variable home loan interest rates.
Smaller lender Reduce Home Loans, has offered a rate as low as 3.19% (comparison rate 3.19%).
While many lenders have announced home loan rate cuts, some reductions may apply to new customers and not existing ones.
Canstar’s finance expert Steve Mickenbecker said it was worth following up with your lender to see if the rate cut applies to you.
“Now is the time to look around and compare what your bank is offering to new customers and say ‘I want some of that’,” Mr Mickenbecker said.
Below is a breakdown of which lenders from our database have announced they’ve cut variable mortgage rates so far for owner occupiers, in alphabetical order.
|Owner Occupier Standard Variable Rate Cuts Effective from 4 June 2019|
|Lender||Change (percentage points)||Effective Date|
|ANZ||-0.18||14 June 2019|
|Athena||-0.25||4 June 2019|
|Auswide Bank||-0.25||2 July 2019|
|Bank of Melbourne||-0.20||18 June 2019|
|BankSA||-0.20||18 June 2019|
|Bankwest||-0.25||25 June 2019|
|BCU||-0.25||1 July 2019|
|Bendigo Bank||-0.20*||28 June 2019|
|Bank of Queensland||-0.25**||25 June 2019|
|Commonwealth Bank||-0.25||25 June 2019|
|CUA||-0.25***||25 June 2019|
|Greater Bank||-0.25||11 June 2019|
|Homestar Finance||-0.25||4 June 2019|
|IMB Bank||-0.25****||21 June 2019|
|ING||-0.25||25 June 2019|
|Macquarie Bank||-0.25||7 June 2019|
|ME Bank||-0.25||27 June 2019|
|National Australia Bank||-0.25||14 June 2019|
|Newcastle Permanent||-0.25||17 June 2019|
|P&N Bank||-0.18*****||28 June 2019|
|RACQ Bank||-0.25||12 June 2019|
|RAMS||-0.20||18 June 2019|
|Reduce Home Loans||-0.25||4 June 2019|
|St George Bank||-0.20||18 June 2019|
|Suncorp Bank||-0.20||21 June 2019|
|Virgin Money||-0.22||25 June 2019|
|Westpac||-0.20||18 June 2019|
|Source: www.canstar.com.au. Based on standard variable rate movements effective from 4 June 2019 onwards. Table sorted alphabetically.|
Canstar will keep this page updated as further announcements are made by lenders passing on the rate cut to customers.
*Bendigo Bank owner occupier and investment P&I home loans will be cut by 0.20 percentage points, while IO loans will be cut by 0.15 percentage points.
**BOQ’s Clear Path Owner Occupier Principal and Interest loan will be cut by 0.15 percentage points.
***CUA’s Accelerate and Balance variable home loans will be cut by between 0.10 and 0.15 percentage points.
****IMB Bank’s one, two and three-year fixed rate owner occupier loans will also be reduced, as well as its one and three-year fixed investor loans.
*****P&N Bank’s two and three-year fixed owner occupier and investor loans will be cut by 0.39 percentage points, effective 14 June 2019.