Lenders respond to the RBA rate cut

Rates have hit a record low as the RBA decided to cut the cash rate 0.25% to 2.50% on Tuesday. It also marks the 8th time the cash rate has been cut in the last two years. Governor Glenn Stevens noted in a statement that global growth was running a bit below average this year and “the Board judged that a further decline in the cash rate was appropriate.”

This interest rate cut is great news for Australians with mortgages, as it represents a $45 a month saving for someone with a $300,000 mortgage on a 25 year term. While borrowers can rejoice in the announcement, savers can expect the full rate cut to be passed on to them, resulting in a hit to the interest they are earning on deposits.

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

Luckily for Australians, there is still a lot of competition in the market for both savers and borrowers with many providers offering some great 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

2.50

7/08/2013

Adelaide Bank

-0.25

5.31

26/08/2013

AMO

-0.25

5.35

12/08/2013

AMP

-0.25

6.00

22/08/2013

ANZ

-0.25

5.88

16/08/2013

Aussie

-0.25

5.98

16/08/2013

Bank of Melbourne

-0.25

5.90

19/08/2013

Bank of Queensland

-0.25

6.01

27/08/2013

bankmecu

-0.15

5.59

19/08/2013

BankSA

-0.25

5.97

19/08/2013

BankVic

-0.25

5.49

7/08/2013

Bankwest

-0.25

5.89

19/08/2013

Bendigo Bank

-0.25

6.01

26/08/2013

Cairns Penny Savings & Loans

-0.25

5.50

14/08/2013

Commonwealth Bank

-0.25

5.90

14/08/2013

CUA

-0.20

5.40

15/08/2013

Defence Bank

-0.25

5.64

28/08/2013

ecu Australia

-0.25

5.80

 

Greater Building Society

-0.25

5.50

8/08/2013

Heritage Bank

-0.25

5.64

16/08/2013

homeloanHQ

-0.30

4.76

13/08/2013

Homeloans Ltd

-0.27

5.22

16/08/2013

HSBC

-0.25

5.95

19/08/2013

Hunter United Credit Union

-0.25

5.70

1/09/2013

IMB

-0.25

5.66

19/08/2013

iMortgage

-0.25

4.89

9/08/2013

ING DIRECT

-0.25

5.34

23/08/2013

Intech Credit Union

-0.25

5.68

13/08/2013

loans.com.au

-0.26

4.49

6/08/2013

Macquarie Bank

-0.25

5.95

9/08/2013

ME Bank

-0.25

5.38

23/08/2013

Mortgage House

-0.25

5.16

12/08/2013

My Mortgage Freedom

-0.25

4.83

12/08/2013

MyRate.com.au

-0.25

5.17

23/08/2013

MyState Financial

-0.25

5.89

14/08/2013

NAB

-0.25

5.88

12/08/2013

Newcastle Permanent Building Society

-0.25

5.55

12/08/2013

People's Choice Credit Union

-0.25

5.87

21/08/2013

Police Bank

-0.20

5.64

13/08/2013

Queensland Police Credit Union

-0.25

5.64

26/08/2013

RAMS

-0.25

5.85

12/08/2013

Resi Home Loans

-0.25

5.72

8/08/2013

SCU

-0.25

5.77

12/08/2013

Select Credit Union

-0.25

5.29

1/09/2013

SERVICE ONE Members Banking

-0.25

5.75

14/08/2013

SGE Credit Union

-0.25

5.87

9/08/2013

St.George

-0.25

5.99

19/08/2013

State Custodians Mortgage Company

-0.25

4.84

8/08/2013

Suncorp Bank

-0.25

5.99

26/08/2013

UBank

-0.25

4.62

16/08/2013

Westpac

-0.28

5.98

19/08/2013

 Source: www.infochoice.com.au

 Information current as at 14 August 2013

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