Find Out The Lenders Passing on Record Low Interest Rate Cuts

In the wake of the record low interest rate cuts to .5% with talk of a further cut to .25% in April find out which lenders are passing on the savings.

  • RBA announces interest rate cuts to record low of .5%
  • Westpac and CBA announce passing on full 25 basis point cut for all mortgage customers and for small business cash-based loans and overdrafts
  • Ratecity.com.au estimates Westpac’s move will save the average home loan customer $55 per month and $662 a year and CBA $58p/m and $691p/a
  • Westpac standard variable home loan rate for owner occupiers to 4.58% and CBA 4.55%
  • The decision from the big banks is likely to put pressure on smaller lenders including political pressure from the PM
  • Ratecity says the lowest advertised variable rate for new customers is now just 2.44%

They’re the third interest rate cuts in a year with the latest being sighted as a buffer to help combat the Coronavirus crisis. Despite the uneasy economic climate, the cuts open further opportunities for home buyers and investors. Westpac and CBA had already announced they would be passing on the full 25 basis point official rate cut through to it’s mortgage borrowers early on with many more following suit. Read below for the full list of lenders.

PM Urges Lenders to Pass On Interest Rate Cuts

The announcement comes on the back of Prime Minister Scott Morrison urging Australia’s major banks to pass on any cut in full to support the economy. “There is no doubt that if the bank were to take a decision today on cash rates that the Government would absolutely expect the four big banks to come to the table and to do their bit in supporting Australians as we go through the impact of the coronavirus,” he said.

PM Scott Morrison urging lenders to pass on interest rate cuts
Scott Morrison says Banks should pass on interest rates Source: ABC News

Analysts at ratecity.com.au estimate the interest rate cuts will pass on savings of $70 per month on a variable home loan of $500,000 and we are already seeing some smaller lenders also passing on the cuts in full although in some cases only to new customers.

Follow this article for updates as they come.

Which Banks are Passing on the Interest Rate Cuts?

86 400 interest rate cut

  • Rate cut: 25 basis points
  • Applies to: All variable rate home loans (new and existing, owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 04 March 2020 (1 day after RBA cut)
  • New lowest advertised variable rate

ANZ interest rate cut

  • Rate cut: 25-35 basis points
  • Applies to: Standard variable home loans:
    • OO P&I, OO IO, Investor P&I: 25 basis points
    • Investor IO: 35 basis points
  • Announcement date: 03 March 2020
  • Effective date: 13 March (10 days after RBA rate cut)
  • New lowest advertised variable rate:
  • June rate cut: 18 basis points
  • July rate cut: 25 basis points
  • October rate cut: 14-25 basis points 

Athena interest rate cut

  • Rate cut: 25 basis points
  • Applies to: All variable rate home loans (new and existing, owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 03 March 2020
  • New lowest advertised variable rate: 2.59% p.a. (2.55% p.a. comp rate*) for OO P&I borrowers with up to 80% LVR
  • June rate cut: 25 basis points
  • July rate cut: 25 basis points 
  • October rate cut: 25 basis points 

Bank of Melbourne interest rate cut

  • Rate cut: 25 basis points
  • Applies to: All variable rate home loans (owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 17 March 2020 (14 days after RBA rate cut)
  • New lowest advertised variable rate: 
  • June rate cut: 20-35 basis points 
  • July rate cut: 20-30 basis points 
  • October rate cut: 15 basis points 

Bank SA interest rate cut

  • Rate cut: 25 basis points
  • Applies to: All variable rate home loans (owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 17 March 2020 (14 days after RBA rate cut)
  • New lowest advertised variable rate: 
  • June rate cut: 20-35 basis points 
  • July rate cut: 20-30 basis points 
  • October rate cut: 15 basis points 

Commonwealth Bank interest rate cut

  • Rate cut: 25 basis points
  • Applies to: All variable rate home loans (new and existing, owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 24 March 2020 (21 days after RBA cut)
  • New lowest advertised variable rate:
  • June rate cut: 25 basis points 
  • July rate cut: 19-25 basis points 
  • October rate cut: 13-25 basis points 

Firstmac interest rate cut

  • Rate cut: 25 basis points
  • Applies to: Existing customers on variable rate home loans (owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 26 March 2020 (23 days after RBA rate cut) 

Homestar Finance interest rate cut

  • Rate cut: 25 basis points
  • Applies to: Variable rate home loans for all customers
  • Announcement date: 03 March 2020
  • Effective date: 1 April (existing customers), 03 March (new customers)
  • New lowest advertised variable rate: 2.44% p.a. (2.47% p.a. comp rate*) for OO P&I customers with up to 60% LVR
  • June rate cut: 25 basis points 
  • July rate cut: 20 basis points
  • October rate cut: 25 basis points 

Loans.com.au interest rate cut

  • Rate cut: 25 basis points
  • Applies to: Existing customers on variable rate home loans (owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 26 March 2020
  • New lowest advertised variable rate:
  • June rate cut: 20 basis points 
  • July rate cut: 25 basis points
  • October rate cut: 15-20 basis points

Macquarie Bank interest rate cut

  • Rate cut: 25 basis points
  • Applies to: “Home loan customers”
  • Announcement date: 03 March 2020
  • Effective date: 19 March 2020
  • New lowest advertised variable rate:
  • June rate cut: 25 basis points 
  • July rate cut: 20 basis points
  • October rate cut: 15 basis points 

NAB interest rate cut

  • Rate cut: 25 basis points
  • Applies to: Existing customers on variable rate home loans (owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 13 March 2020
  • New lowest advertised variable rate:
  • June rate cut: 25 basis points 
  • July rate cut: 19 basis points
  • October rate cut: 15-30 basis points 

RAMS interest rate cut

  • Rate cut: 25 basis points
  • Applies to: Existing customers on variable rate home loans (owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 17 March 2020 (14 days after RBA rate cut)
  • New lowest advertised variable rate: 
  • June rate cut: 20-35 basis points 
  • July rate cut: 20-30 basis points 
  • October rate cut: 15 basis points 

Reduce Home Loans interest rate cut

  • Rate cut: Up to 25 basis points
  • Applies to: Variable rate home loans for new customers (OO and investor) 
  • Announcement date: 03 March 2020
  • Effective date: 03 March 2020 (new customers only) 
  • New lowest advertised variable rate: 
  • June rate cut: 25 basis points 
  • July rate cut: Up to 22 basis points
  • October rate cut: Up to 20 basis points 
  • Other info: Rate cuts for existing customers yet to be confirmed

St George interest rate cut

  • Rate cut: 25 basis points
  • Applies to: All variable rate home loans (owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 17 March 2020 (14 days after RBA rate cut)
  • New lowest advertised variable rate: 
  • June rate cut: 20-35 basis points 
  • July rate cut: 20-30 basis points 
  • October rate cut: 15 basis points 

Westpac interest rate cut

  • Rate cut: 25 basis points
  • Applies to: Existing customers on variable rate home loans (owner-occupier and investor)
  • Announcement date: 03 March 2020
  • Effective date: 17 March 2020 (14 days after RBA rate cut)
  • New lowest advertised variable rate: 
  • June rate cut: 20-35 basis points 
  • July rate cut: 20-30 basis points 
  • October rate cut: 15 basis points

Source: Savings.com.au