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Big four banks fire off rate cuts on back of RBA announcement
CBA, Westpac, NAB and ANZ, have all announced they will pass on the RBA’s 0.25 percentage point cut to variable mortgage customers.
18 Feb 2025
CBA, Westpac, NAB and ANZ, have all announced they will pass on the RBA’s 0.25 percentage point cut to variable mortgage customers.
All four major banks, CBA, Westpac, NAB and ANZ, have stepped up to the plate, announcing they will pass on the RBA’s 0.25 percentage point cut to variable mortgage customers. While CBA, NAB and ANZ home loan rate cuts will take effect on 28 February, Westpac’s home loan changes will kick in on 4 March.
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| Big banks new lowest variable rates following RBA cut | ||||
|---|---|---|---|---|
| New lowest variable rate |
New lowest variable rate with offset |
Change | Date effective |
|
| CBA | 5.90% | 6.09% | -0.25% | 28 Feb 2025 |
| Westpac | 6.19% | 7.19% | -0.25% | 4 Mar 2025 |
| NAB | 6.19% | 6.54% | -0.25% | 28 Feb 2025 |
| ANZ | 5.84% | 5.84% | -0.25% | 28 Feb 2025 |
Source: Canstar.com.au. CBA and ANZ lowest rates are for their digital-only home loans.
What are the big banks doing for savers?
CBA is passing on the 0.25 percentage point cut to its GoalSaver account and 0.20 percentage points on its NetBank Saver account, effective 28 February. Westpac has also announced it will pass on the 0.25 percentage point cut to its Life account, while the maximum rate on the eSaver account will drop by 0.25 percentage points, which includes a 0.10 percentage point cut to the base rate, effective 28 February.
At this stage, NAB and ANZ have not announced changes to their savings accounts.
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| CBA savings rates – effective 28 February | ||||
|---|---|---|---|---|
| Old max rate |
New max rate |
Change | Date effective |
|
| NetBank
Saver |
5.10% for 5 months then 2.35% |
4.90% for 5 months then 2.15% |
-0.20% | 28 Feb 2025 |
| GoalSaver | 4.90% | 4.65% | -0.25% | 28 Feb 2025 |
| Youthsaver | 5.00% | under review | – | − |
Source: Canstar.com.au. Notes: conditions and balance caps apply for maximum rate on select accounts. Contact us for a breakdown on base and bonus rates.
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| Westpac savings rates – effective 28 February | ||||
|---|---|---|---|---|
| Old max rate |
New max rate |
Change | Date effective |
|
| eSaver | 5.00% for 5 months then 1.10% |
4.75% for 5 months then 1.00% |
-0.25% to max intro rate-0.10% to ongoing rate |
28 Feb 2025 |
| Life | 5.00% | 4.75% | -0.25% | 28 Feb 2025 |
| Spend&Save | 5.20% | under review | – | – |
| Bump | 5.00% | under review | – | – |
Source: Canstar.com.au. Notes: conditions and balance caps apply for maximum rate on select accounts.
Canstar.com.au data insights director, Sally Tindall, says, “Borrowers across the country will hopefully be able to sleep slightly easier tonight, knowing that mortgage relief is finally here.”
“After scaling what has been, for many households, a financial Everest, we’re now officially on the descent and what a fantastic feeling that is for borrowers.
“One 0.25 percentage point rate reduction pales in comparison to the mountain of rate hikes borrowers have been pummelled with in the last few years. However, this first cut represents more than dollars back into the budget, it suggests that the worst of the cost-of-living crisis could now be behind us.
“All four big banks have done the right thing by their customers by passing on this cut in full to variable rate borrowers. This should put pressure on the other banks to play ball and pass this cut on in full.
“Cash rate cuts are always a double-edged sword and unfortunately today’s news will be a bitter pill for anyone with savings in the bank.
“Australia’s biggest bank, CBA, has softened the sting for some savers, cutting its NetBank Saver account by 0.20 percentage points. However, at just 2.15 per cent ongoing, savers can do a lot better with their hard-earned money.
“If you’ve got money in the bank, try and keep the dream alive by shopping around for a more competitive interest rate.
“After this cash rate cut filters through there are still likely to be a handful of banks offering at least one ongoing saving rate above 5 per cent.”
Keep updated on rate changes using Canstar’s new Rate Tracker: www.canstar.com.au/ratetracker and download the Canstar app to get alerted when your lender changes.
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This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
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