Lenders are cutting variable rates, but when??

The RBA decision to cut the cash rate by .25% to 2.75% on Tuesday marks the first time since records began 53 years ago that the cash rate has dropped below 3%. It also marks the fifth time the cash rate has been cut in the last 12 months. The interest rate cut is great news for those people with mortgages, as it will represent a $550 a year saving for someone with a $300,000 mortgage on a 25 year term, which would make a huge difference as many living expenses continue to rise.

Lenders have been quick to move and many have already announced that they will pass on the rate cut in full. Below is a list of the ones that have already announced that they are passing it on and when it takes effect.

This is a clear representation of the fact that lenders are keen to attract more borrowers, particularly as the real estate market is beginning to show signs of life.

One group of people that will not be welcoming a rate cut today are people with money in savings accounts and term deposits, as you can expect the full rate cut to be passed on which will represent a hit to the interest they would have been earning on their deposits. The great news for Australian's is that there is still a lot of competition in the marketplace for both home loans and deposits which can result in good deals for consumers.

So why not start comparing what other products are in our home loan category.

Lender

Rate Cut

New Standard Variable Rate

Effective

RBA

-0.25

2.75

8/05/2013

ADCU

-0.25

5.84

31/05/2013

Adelaide Bank

-0.25

5.56

27/05/2013

AMO

-0.25

5.60

17/05/2013

AMP

-0.25

6.25

24/05/2013

ANZ

-0.27

6.13

17/05/2013

Arab Bank

-0.25

6.75

20/05/2013

Aussie

-0.25

6.23

15/05/2013

B&E Personal Banking

-0.25

6.14

16/05/2013

Bank of Melbourne

-0.25

6.15

17/05/2013

Bank of Queensland

-0.25

6.26

24/05/2013

Bank of Sydney

-0.25

6.63

3/06/2013

bankmecu

-0.25

5.74

15/05/2013

BankSA

-0.25

6.22

20/05/2013

Bankstown City Credit Union

-0.20

5.67

1/06/2013

Bankwest

-0.25

6.14

20/05/2013

Bendigo Bank

-0.25

6.26

27/05/2013

Big Sky Building Society

-0.25

6.10

20/05/2013

Cairns Penny Savings & Loans

-0.25

5.75

21/05/2013

Catalyst Mutual

-0.30

5.95

22/05/2013

Citibank

-0.25

6.44

20/05/2013

Commonwealth Bank

-0.25

6.15

13/05/2013

Community CPS Australia

-0.25

6.04

21/05/2013

Community First Credit Union

-0.22

6.12

1/06/2013

Companion Credit Union

-0.25

6.04

21/05/2013

Comtax Credit Union

-0.25

5.47

16/05/2013

CUA

-0.25

5.60

20/05/2013

Defence Bank

-0.25

5.89

29/05/2013

Delphi Bank

-0.25

6.15

4/06/2013

Easy Street Financial Services

-0.22

5.51

1/06/2013

ecu Australia

-0.25

6.05

 

eMoney

-0.25

5.20

17/05/2013

Encompass Credit Union

-0.25

5.80

1/06/2013

FCCS Credit Union

-0.25

6.39

20/05/2013

Gateway Credit Union

-0.25

5.74

16/05/2013

Goldfields Money

-0.25

5.42

27/05/2013

Greater Building Society

-0.30

5.75

9/05/2013

Heritage Bank

-0.25

5.89

16/05/2013

homeloanHQ

-0.25

5.06

13/05/2013

Homeloans Ltd

-0.25

5.49

17/05/2013

HomeStar

-0.25

5.48

20/05/2013

Horizon Credit Union

-0.25

6.04

16/05/2013

HSBC

-0.25

6.20

24/05/2013

Hunter United Credit Union

-0.25

5.95

1/06/2013

Illawarra Credit Union

-0.30

5.95

22/05/2013

IMB

-0.25

5.91

20/05/2013

iMortgage

-0.25

5.19

16/05/2013

ING DIRECT

-0.25

5.59

17/05/2013

Intech Credit Union

-0.25

5.93

13/05/2013

Liberty Financial

-0.25

5.54

20/05/2013

LJ Hooker Finance

-0.25

5.30

17/05/2013

loans.com.au

-0.24

4.75

8/05/2013

Macquarie Bank

-0.25

6.20

9/05/2013

Macquarie Credit Union

-0.20

5.73

22/05/2013

MCU Ltd

-0.20

6.40

3/06/2013

ME Bank

-0.25

5.63

28/05/2013

Mortgage House

-0.25

5.41

15/05/2013

My Mortgage Freedom

-0.25

4.98

16/05/2013

MyRate.com.au

-0.25

5.42

17/05/2013

MyState Financial

-0.25

6.14

20/05/2013

NAB

-0.25

6.13

13/05/2013

Nationwide Mortgage

-0.25

5.32

10/05/2013

Newcastle Permanent Building Society

-0.25

5.80

13/05/2013

P&N Bank

-0.25

5.95

21/05/2013

Pacific Mortgage Group

-0.25

5.02

10/05/2013

People's Choice Credit Union

-0.25

6.12

24/05/2013

Pioneer Direct

-0.25

5.46

30/05/2013

Police Bank

-0.20

5.84

13/05/2013

Police Credit

-0.25

5.74

8/05/2013

Qantas Credit Union

-0.25

5.28

17/05/2013

QT Mutual Bank

-0.25

6.07

21/05/2013

Quay Credit Union

-0.25

5.44

14/05/2013

Queensland Police Credit Union

-0.25

5.89

20/05/2013

Queensland Professional Credit Union

-0.25

5.55

1/06/2013

Queenslanders Credit Union

-0.25

5.48

14/05/2013

Railways Credit Union

-0.25

5.64

1/06/2013

RAMS

-0.25

6.10

13/05/2013

Resi Home Loans

-0.25

6.02

10/05/2013

SCU

-0.22

6.02

17/05/2013

Select Credit Union

-0.25

5.54

1/06/2013

SERVICE ONE Members Banking

-0.25

6.00

20/05/2013

SGE Credit Union

-0.25

6.12

10/05/2013

St.George

-0.25

6.24

20/05/2013

State Custodians Mortgage Company

-0.25

5.09

9/05/2013

Suncorp Bank

-0.25

6.24

24/05/2013

Teachers Mutual Bank

-0.25

5.93

20/05/2013

Transcomm Credit Union

-0.20

6.09

1/06/2013

Transport Mutual Credit Union

-0.20

6.01

31/05/2013

UBank

-0.25

5.12

17/05/2013

Unicredit

-0.15

5.40

20/05/2013

United Community

-0.25

6.04

21/05/2013

Victoria Teachers Mutual Bank

-0.25

5.89

17/05/2013

Westpac

-0.25

6.26

20/05/2013

Yellow Brick Road

-0.25

5.29

9/05/2013

Source: www.infochoice.com.au

Information current as at 5 June 2013

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