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With the Reserve Bank Board’s decision to cut the cash rate by 25 basis points to a record low of 1.25%, all eyes are on the banks to see if they’ll pass on the full rate cut to their home loan customers.

So, what is your lender doing? Here is a list of the variable rate cuts that have been announced for owner occupiers.

 

Lender Rate Change Effective Date
AMP -0.25% p.a. 21 June 2019
ANZ -0.18% p.a. 14 June 2019
Athena -0.25% p.a. 4 June 2019
Bank of Melbourne -0.20% p.a. 18 June 2019
BankSA -0.20% p.a. 18 June 2019
Bankwest -0.25% p.a. 25 June 2019
Bank of Queensland -0.25% p.a. * 25 June 2019
Commonwealth Bank -0.25% p.a. 25 June 2019
CUA -0.25% p.a. ** 18 June 2019
Greater Bank -0.25% p.a. 11 June 2019
HSBC -0.22% p.a. 17 June 2019
IMB -0.25% p.a. 21 June 2019
ING -0.25% p.a. 25 June 2019
Macquarie Bank -0.25% p.a. 7 June 2019
ME -0.25% p.a. 27 June 2019
NAB -0.25% p.a. 14 June 2019
RAMS -0.20% p.a. 18 June 2019
St.George -0.20% p.a. 18 June 2019
Suncorp Bank -0.20% p.a. 21 June 2019
UBank -0.25% p.a. 28 June 2019
Virgin Money -0.22% p.a. 25 June 2019
Westpac -0.20% p.a. 18 June 2019

 

A rate cut is great news for borrowers! Let’s say you currently have a $400,000 home loan with an interest rate of 4% p.a. over a 30-year term. If your lender passes on the full 0.25% p.a. rate cut to you, 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 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.

 


* Bank of Queensland announced it will reduce all variable home loan interest rates by 0.25% p.a., with the exception of those linked to the Clear Path Owner Occupier Principal and Interest rate, where the reduction will be 0.15% p.a.

** A reduction of 0.25% p.a. will be passed on to most CUA home loan products including the Standard Variable, Discount Variable and Fresh Start home loans. Reductions of between 0.10% p.a. and 0.15% p.a. will be applied to the Accelerate and Balance variable home loan products.