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Westpac and ANZ round out the Big Four cuts
The last of the Big Four Banks have finally handed down their rate decisions with Westpac and ANZ both announcing cuts within minutes of each other.
Westpac and its subsidiaries – St.George Bank, Bank of Melbourne and BankSA – have cut headline variable home loan rates by 0.15 per cent, for both owner-occupiers and investors. The changes take effect on 16 October.
ANZ has cut variable rates by 0.14 per cent, effective 11 October.
Westpac and ANZ’s rate cuts follow similar announcements yesterday made by CBA and NAB, which will cut variable home loan rates by 0.13 per cent and 0.15 per cent, respectively.
Rate cut | Date effective | |
CBA | 0.13% | 22 October |
Westpac | 0.15% | 16 October |
NAB | 0.15% | 11 October |
ANZ | 0.14% | 11 October |
Paul Marshall, chief executive at RateCity.com.au said: “The Big Four Banks have only chosen to pass on a fraction of the rate cuts. Although disappointing, it’s not unexpected.”
“The banks have gone against the Treasurer’s wishes by passing on just 0.14 per cent of the RBA’s rate cut on average, and home loan customers will rightly feel frustrated at this decision.
“Now that the Big Four Banks have all made their move, we expect a flurry of other lenders to begin announcing their cuts.
“New customers are still getting the sharpest home loan rates, so if you’re not happy with what your bank has passed on you can get yourself a better rate cut by taking your business elsewhere.”
Impact of 0.15% Westpac rate cut | ||||||
Westpac | Old rate | New rate | Savings per month | Missed savings per month | Savings per year | Missed savings per year |
Standard Variable Rate | 4.98% | 4.83% | $36 | $24 | $438 | $290 |
Discounted Variable Rate | 3.64% | 3.49% | $34 | $22 | $404 | $267 |
Lowest variable rate | 3.38% | 3.23% | $33 | $21 | $397 | $262 |
Source: RateCity.com.au. Note: The rates are for owner-occupiers paying principal and interest on a $400,000 loan over 30 years. Missed savings are calculated based on what a customer would have saved if Westpac had passed on the full rate cut of 0.25 per cent.
Impact of 0.14% ANZ rate cut | ||||||
ANZ | Old rate | New rate | Savings per month | Missed savings per month | Savings per year | Missed savings per year |
Standard Variable Rate | 4.93% | 4.79% | $34 | $26 | $408 | $318 |
Discounted Variable Rate | 4.13% | 3.99% | $32 | $25 | $389 | $303 |
Lowest variable rate | 3.38% | 3.24% | $30 | $24 | $370 | $288 |
Source: RateCity.com.au. Note: The rates are for owner-occupiers paying principal and interest on a $400,000 loan over 30 years. Missed savings are calculated based on what a customer would have saved if ANZ had passed on the full rate cut of 0.25 per cent.
Big Four Banks variable rates – state of play | |||
Standard Variable Rate | Discounted Variable Rate | Lowest variable rate | |
CBA | 4.80% | 4.30% | 3.22% |
Westpac | 4.83% | 3.49% | 3.23% |
NAB | 4.77% | 3.92% | 3.20% |
ANZ | 4.79% | 3.99% | 3.24% |
Note: Rates are based on owner-occupier paying principal and interest.
Find out who is passing on the cut and by how much in RateCity’s live rate cut list
Disclaimer
This article is over two years old, last updated on October 2, 2019. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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