Are any banks passing on the RBA rate cut?
The big four banks have angered many Australian home loan borrowers in the last week. Commonwealth Bank, Westpac, National Australia Bank and ANZ Bank have cut their variable home loan interest rates by about half of the Reserve Bank’s 0.25 percentage point August rate cut.
However there are lenders who have delivered the full 0.25 percentage point rate cut to their customers.
Which banks are cutting home loan interest rates?
More than 26 lenders have announced changes to their variable mortgage interest rates in the last week. Most lenders, including the big four banks, have retained some of the RBA rate cut to boost their own margins. One third of those lenders have cut their mortgage rates by only 0.10 percentage points.
Just four Australian home loan lenders have, so far, cut their rates by the full 0.25 percentage point RBA rate cut. However one lender has gone beyond the RBA rate cut and delivered a bigger cut to its mortgage customers.
P&N Bank cut its main home loan product, the & Home Loan, by 0.26 percentage points, six other home loan products by 0.25 percentage points and another five home loan products by 0.10 percentage points.
Bank Australia has cut variable rates by 0.25 percentage points. Bank Australia now features a variable rate of just 3.73 per cent with a comparison rate of 3.74 per cent.
Bank of Sydney have cut variable rates by 0.25 percentage points and now feature a variable rate of 3.88 per cent with a comparison rate of 4.28 per cent.
Homestar Finance cut its variable rate by 0.25 percentage points. Homestar is now offering a variable rate of 3.44 per cent with a comparison rate of 3.49 per cent.
Virgin Money have all cut their standard variable home loan rates by 0.25 percentage points. Virgin Money’s variable rate is now 3.74 per cent with a comparison rate of 3.88 per cent.
How can I get a lower home loan rate?
The lowest home loan comparison rate in the market right now is 3.40 per cent. If you are paying around five per cent on your mortgage, you are paying too much. You can grab a huge rate cut for yourself by comparing deals and being prepared to switch lenders. Check out the best home loan deals in Australia at infochoice today.