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Just when you thought rates couldn’t get any lower, the Reserve Bank Board decides to cut the cash rate for the second month in a row. The cash rate is now at an all-time low of 1.00%.

How are the banks responding? Here is a list of the variable rate cuts that have been announced for owner occupiers with principal & interest repayments.

 

Lender Rate Change Effective Date
AMP -0.20% p.a. 22 July 2019
ANZ -0.25% p.a. 12 July 2019
Athena -0.25% p.a. 2 July 2019
Bank of Melbourne -0.20% p.a. 16 July 2019
Bank of Queensland -0.15% p.a. 23 July 2019
BankSA -0.20% p.a. 16 July 2019
Bankwest -0.19% p.a. 23 July 2019
Commonwealth Bank -0.19% p.a. 23 July 2019
CUA -0.17% p.a.* 10 July 2019
Greater Bank -0.25% p.a. 29 July 2019
HSBC -0.20% p.a. 22 July 2019
IMB -0.18% p.a. 25 July 2019
ING -0.20% p.a. 18 July 2019
Loans.com.au -0.25% p.a. 5 July 2019
Macquarie Bank -0.20% p.a. 5 July 2019
ME -0.15% p.a. 23 July 2019
NAB -0.19% p.a. 12 July 2019
RAMS -0.20% p.a. 16 July 2019
St.George -0.20% p.a. 16 July 2019
State Custodians -0.25% p.a.** 24 July 2019
Suncorp Bank -0.19% p.a. 19 July 2019
UBank -0.25% p.a. 2 August 2019
Virgin Money -0.15% p.a. 23 July 2019
Westpac -0.20% p.a. 16 July 2019

 

A rate cut is great news for borrowers! If you have a $400,000 home loan with an interest rate of 4% p.a. over a 30-year term and your lender decides to pass on the full rate cut, your new rate will be 3.75% p.a. Your repayments would decrease from $1,909.66 to $1,852.46. That’s a difference of $57.20 a month or $686.39 a year. You could use those extra savings to help pay down your mortgage!

 

If your lender has decided not to pass on the full rate cut to you or your interest rate for home loan is no longer competitive, it might be time to refinance with a new 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 looking to speak to an expert, request a free appointment with an Aussie Mortgage Broker.

 


*Excluding the CUA Rate Breaker

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