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The lenders that are cutting home loan rates so far

The lenders that are cutting home loan rates so far

06 Mar, 2020 - 3 min read

More than 50 lenders have committed to reducing variable rates on home loans, three days after the Reserve Bank of Australia slashed the official cash rate to a new record low of 0.50 per cent.

Of the 55 that have announced rate cuts, 47, including the big four, intend to pass on the full cut of 0.25 basis points, likely due to political pressure from Prime Minister Scott Morrison.

This is in stark contrast to the previous cut in October 2019, where only 16 of the 66 lenders that lowered their rates passed on the full cut.

After the October cut, the big four banks only passed on an average of 0.14 per cent to their owner-occupier customers on variable rate loans, RateCity research shows. This average dropped from 0.21 per cent after the July cut and 0.22 per cent following the June cut.

Notably, several banks intend to pass on a cut of 0.25 per cent or more for investor customers only, suggesting some lenders may be ramping up efforts to chase business from investors.

For example, ANZ has announced it will pass on the full cut to owner-occupiers but a bigger cut of 0.35 per cent for investors on interest-only mortgages.

Has your lender announced rate cuts yet? Keep track of rate changes with our RateCity Rate Tracker.

The lenders that have announced cuts to owner-occupier home loan rates

Lender	Rate cut for variable home loans (%)	Notes	Date effective
86 400	-0.25		March 4^th
Adelaide Bank	-0.25		March 27^th
AMP Bank	-0.25		March 13^th
ANZ	-0.25	-0.25 for owner-occupier P&I and interest-only, plus investor P&I	March 13^th
Athena Home Loans	-0.25		March 3^rd
Australian Military Bank	-0.25		March 26^th
Auswide Bank	-0.25		March 5^thand 27^th(depending on loan)
Bank Australia	-0.25		March 24^th
Bank First	-0.25		March 25^th
Bank of Melbourne	-0.25		March 17^th
Bank of Queensland	-0.17		April 3^rd
BankSA	-0.25		March 17^th
BankVic	-0.25		March 5^th
Bankwest	-0.25		March 18^th
BCU	-0.25		March 1^st
Bendigo Bank	-0.25		March 27^th
Citi	-0.25		March 24^th
Coastline Credit Union	-0.25		March 1^st
Commonwealth Bank of Australia	-0.25		March 24th
Community First Credit Union	-0.10		March 30^th
CUA	-0.25		March 24^th
Defence Bank	-0.25		March 12^th
Firstmac	-0.25	Existing customers only	March 26^th
Freedom Lend	-0.25	-0.25 in general, -0.20 for special loans	March 3^rd
Greater Bank	-0.25	Existing customers only	March 23^rd
Heritage Bank	-0.20		March 25^th
Homestar Finance	-0.25		March 3^rd
HSBC	-0.25		March 23^rd
Hume Bank	-0.20	Existing customers only	March 18^th
Hunter United	-0.15		March 13^th
IMB Bank	-0.25		March 24^th
ING	-0.25		March 18^th
Liberty Financial	-0.25		March 24^th
loans.com.au	-0.25	Existing customers only	March 26^th
Macquarie Bank	-0.25		March 19^th
ME Bank	-0.25	Existing customers only	March 26^th
MyState Bank	-0.25		March 31^st
NAB	-0.25		March 13^th
Newcastle Permanent	-0.25		March 24^th
P&N Bank	-0.25		March 20^th
People's Choice Credit Union	-0.25	Existing members only	March 17^th
Pepper Money	-0.25	Existing customers only	March 16^th
Qudos Bank	-0.25		March 23^rd
RACQ Bank	-0.17		TBC
RAMS	-0.25		March 17^th
Reduce Home Loans	-0.25	TBC for existing customers	March 3^rd
Resimac	-0.25	Existing customers only	March 26^th
St George Bank	-0.25		March 17^th
Suncorp Bank	-0.25		March 20^th
The Capricornian	-0.20	Cut applies to Standard Variable Loans only	March 23^rd
The Mutual	-0.25		March 16^th
UBank	-0.25		April 3^rd
Virgin Money	-0.17		April 3^rd
Westpac	-0.25		March 17^th
Yard	-0.25		March 5^th

*Data correct as of 3pm, March 6^th 2020.

Disclaimer

This article is over two years old, last updated on March 6, 2020. 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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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

Alison Cheung

Finance Writer

Previously a financial writer for RateCity, Alison Cheung specialised in housing and real estate. Since 2015, she has written about commercial and residential property for Domain Group and NewsCorp in print and online, and has been published in both Domain and RealEstate.com.au. Alison is passionate about property investment and innovations in the real estate industry, and firmly believes in the most basic yet vital financial advice ever given: saving for a rainy day.