Which lenders have ALREADY cut home loan rates?

The Reserve Bank of Australia has announced a cut in official interest rates (OCR) of 0.25 percentage points to 1 per cent.

The first big bank to act after the RBA announced its rate cut today was ANZ Bank which announced that it will decrease variable interest home loan rates by 0.25 per centage points, effective from next week, Friday 12 July.

For borrowers with an ANZ Bank Standard Variable Rate Owner Occupiers (principal and interest) home loan this cut reduces ANZ’s Index Rate to 4.93 per cent p.a., from 5.18 per cent p.a.

ANZ executive Mark Hand said: “we will apply this reduction across all our variable rate home loans.”

The Commonwealth Bank announced (at 6pm) that will cut interest rates on variable rate home loans for owner occupiers and investors paying principal and interest by 0.19 percentage points to 4.93 per cent (headline rate).

For interest only loans, Commonwealth Bank has cut rates by the full 0.25 percentage points.

“We have passed on between 0.19 per cent p.a. and 0.25 per cent p.a. interest rate reductions for our home loan customers,” said Angus Sullivan, CBA group executive.

“We believe this combination of pricing changes delivers a fair balance of outcomes for both savers and borrowers.”

The very first lender in Australia to announce that it will be matching the RBA’s full 0.25 percentage point cut was online non-bank lender Athena who made their announcement at 2.31pm.

Athena’s advertised variable home loan (for refinancers) has been cut by 0.25 percentage points, matching the RBA cut, from 3.34 per cent p.a. (comparison rate 3.30 per cent)* to just 3.09 per cent p.a. (comparison rate 3.05 per cent). Athena’s rate cut is effective from today.

Vadim Taube, chief executive of InfoChoice, said other lenders are expected to announce cuts to their variable loan rates over the next few days. However, many lenders are expected to withhold at least some of the RBA rate cut from retail borrowers.

“As rates get lower and lower, more banks will be reluctant to pass on the full RBA rate cuts.

Mr Taube said borrowers didn’t need to accept the rate offered by their lender.

“There are now so many lenders offering variable headline home loan rates under four per cent, now is a great time to have a look at your mortgage and find a deal that could save you thousands of dollars.”

Borrowers who do nothing or don’t contact their lender could end up paying thousands of dollars extra they don’t need to be spending, over the life of their loan said Mr Taube.

“The squeaky wheel gets the oil,” said Vadim Taube, “If you find a better rate and talk to your lender, they could turn around and offer you a better deal.”

“Refinancing and switching to a new lender is not as hard as you might think and if you are on a variable rate loan product the exit fees are required to be reasonable.”

Compare variable rate home loans from all of Australia’s major banks, credit unions and non-bank lenders at InfoChoice.

Comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan

The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.

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