Banks slash home loan interest rates

Banks slash home loan interest rates

Last updated: 01 April 2020

In March 2020, the RBA announced two reductions to the cash rate, bringing the cash rate target to a record low of 0.25%. As households feel the strain of the recent Coronavirus (COVID-19) pandemic, it’s more important than ever to know what interest rate you’re paying on your mortgage and what rate cuts your lender is passing on to you.

Here is a list of the variable rate cuts that have been announced for new owner occupier loans with principal & interest repayments.


Lender Rate Change Effective Date
AMP -0.25% p.a. 30 March 2020
ANZ -0.25% p.a.; and
-0.15% p.a.^
13 March 2020; and
27 March 2020
Athena -0.25% p.a. 3 March 2020
Bank of Melbourne -0.25% p.a. 17 March 2020
Bank of Queensland -0.17% p.a. 3 April 2020
BankSA -0.25% p.a. 17 March 2020
Bankwest -0.25% p.a. 18 March 2020
Commonwealth Bank -0.25% p.a. 24 March 2020
CUA -0.25% p.a. 24 March 2020*
Greater Bank -0.25% p.a. 23 March 2020
HSBC -0.25% p.a. 23 March 2020
IMB -0.25% p.a. 24 March 2020
ING -0.25% p.a. 18 March 2020 -0.25% p.a. 10 March 2020
ME -0.25% p.a. 26 March 2020
NAB -0.25% p.a. 13 March 2020
RAMS -0.25% p.a. 17 March 2020
St.George -0.25% p.a. 17 March 2020
State Custodians -0.25% p.a.** 26 March 2020
Suncorp Bank -0.25% p.a. 20 March 2020
UBank -0.25% p.a. 3 April 2020
Virgin Money -0.17% p.a. 3 April 2020
Westpac -0.25% p.a. 17 March 2020

^As part of ANZ’s COVID-19 support package, a further -0.15% p.a. reduction in variable interest home loan rates will be effective from 27 March 2020.

*The new home loan rates will be effective from 24 March 2020 for all variable loan products, excluding CUA Rate Breaker, which will be effective on 21 April 2020.

**Includes Low Rate Home Loan, Breathe Easy, Peak Performance, Standard Variable and Specialist loans.


These rate cuts are welcome news for borrowers, especially those that are impacted by the COVID-19 pandemic and are going to find it difficult to meet their repayments in the coming months.

If you have a $400,000 home loan with an interest rate of 3.50% p.a. over a 30-year term and your lender decides to pass on a 25 basis point rate cut, your new rate will be 3.25% p.a. Your repayments would decrease from $1,796.18 to $1,740.83. That’s a difference of $55.35 a month or $664.20 a year. You could use those extra savings to help pay down your mortgage!


If your interest rate is no longer competitive, it might be a good time to get in touch with your lender to ask for a better deal or to refinance with a different lender. Check out the Credit Savvy home loan comparison service to see what home loan deals are out there today!

Start comparing now


If you’re not sure where to start, speak to an expert and request a free appointment with an eChoice mortgage expert.


Remember, if you’ve been impacted by the COVID-19 pandemic or you’re having trouble keeping up with your repayments, you should first contact your credit provider as they may have dedicated financial support teams to help you manage your repayments during this time.  Check out our article on the emergency COVID-19 financial relief support to get more information on what measures financial providers have in place.