Is my bank passing on the RBA’s interest rate cut?
Some of Australia’s biggest mortgage lenders are not passing on all of the Reserve Bank of Australia’s (RBA) historic rate cut for August 2016. The RBA cut official rates by 0.25 per cent to just 1.5 per cent. Home loan borrowers who are currently customers of Australia’s big four banks – the Commonwealth Bank, Westpac, National Australia Bank (NAB) and ANZ Bank will not get the whole RBA rate cut.
What rate cuts are the big four banks making?
*Commonwealth Bank has announced that that it will cut interest rates for standard variable home loans by 0.13 per cent from 19 August 2016. That is roughly half of the RBA’s official rate cut of 0.25 percentage points. receive only part of Tuesday's cut in official interest rates. Commonwealth Bank’s new standard variable home loan rate for owner-occupiers is now 5.22 per cent.
NAB has announced home loan rate cuts of 0.10 percentage points. NAB’s new standard variable interest rate is 5.25 per cent.
ANZ Bank is cutting home loan interest rates by 0.12 percentage points. ANZ Bank’s new headline standard variable home loan rate for owner-occupiers is also 5.25 per cent.
Westpac has announced interest rate cuts of 0.14 percentage points for principal and interest home loans. Westpac has also announced a rate cut of 0.10 percentage points on interest-only loans.
How can I get the full RBA rate cut?
To get the full RBA rate cut or a genuinely low home loan interest rate, borrowers need to take control and be prepared to switch lenders. Switching loans is now easier than ever, thanks to government reforms to cut exit fees and other hurdles to competition in the mortgage market.
Infochoice now lists many lenders with headline variable mortgage rate under four per cent and the number of lenders with rates under four per cent is growing.