All four big banks retain part of the RBA rate cut

MEDIA RELEASE 2 October 2019

The big banks have defied the treasurer Josh Frydenberg and NOT passed through the entire 0.25% RBA rate cut to variable rate owner-occupier home loan borrowers paying principal and interest.

While many lenders have announced 0.25% rate cuts (and even more) for investors, fixed rate and interest-only borrowers, the big banks have not passed on the full RBA rate cut to owner-occupiers paying principal and interest on variable rate loans.

ANZ Bank has cut variable home loan rates (for owner occupiers paying principal and interest) by 0.14 percentage points.

Westpac has cut variable rates for owner occupiers paying principal and interest by 0.15 percentage points.

NAB and CBA yesterday announced rate cuts of 0.15 percentage points and 0.13 percentage points respectively for owner occupiers paying principal and interest.

The biggest rate cut for owner occupiers paying principal and interest on variable rate loans is from G&C Mutual Bank. G&C cut 0.50 percentage points from their variable rate first home-owner loan to 2.79 per cent pa.

“Owner occupiers paying principal and interest on variable rate home loans is the number one market for most banks and home lenders,” said Vadim Taube, CEO of leading Australian financial comparison site, InfoChoice.com.au.

“It is also the market that reflects the Australian dream of families trying to buy their own home.

“If your lender hasn’t passed on the full RBA rate cut to you, you may like to listen to the treasurer Josh Frydenberg and think about voting with your feet.

“There are plenty of lenders who are passing on the full rate cut to customers and switching loans is getting easier and cheaper all the time.

“More lenders are going completely online and accepting applications that you can put together on your lounge at home.”

“I urge all home loan borrowers to check their rate and compare it with other loans in the market.

For more information on Savings account rates, data and commentary, please contact:

Jason Bryce, Media Manager on 0428 777 727 jason.bryce@infochoice.com.au

For more comments, please contact: Vadim Taube, Chief Executive on 0403 580 794

Keep up to date with the latest RBA rates outlook at InfoChoice.

* InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.

** 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

***Excludes accounts with introductory honeymoon maximum bonus rates, notice saver accounts and accounts that are not generally available to all Australian residents

InfoChoice is a leading Australian comparison website for retail banking and personal finance products. We’ve been helping Aussies find great offers on credit cards, home loans, savings accounts, term deposits, personal loans and car loans for over 25 years. Our mission is to help consumers make an informed purchasing by bringing together the most comprehensive list of financial products on the market today.

At InfoChoice, we strive to be:

•           Comprehensive. We compare more than 3500 individual products from 145 providers within Australia to offer you the best value.

•           Informative. We know how important it is for you to crunch the numbers before buying. Our calculators help you understand the cost of different products over the long term and show you the potential savings.

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