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RBA cuts the cash rate, which banks have moved?

RBA cuts the cash rate - which banks have moved?

Following the RBA’s cash rate cut, all eyes are on lenders to see if they intend to pass this cut on. A full list of lenders who have announced their lowering rates is below.

CompanyCut*Effective DateNotes
AMP Bank0.20%20/05/2016  Effective 23 May for existing customers
Australian Military Bank0.25%27/06/2016
Auswide Bank0.20%25/05/2016  0.15% for investors
Bank of Melbourne0.25%23/05/2016
Bendigo Bank0.20%30/05/2016  0.15% for investors
Coastline Credit Union0.25%16/05/2016
Commonwealth Bank0.25%20/05/2016
CUA0.25%19/05/2016  0.20% for investors
First Option Credit Union0.25%9/05/2016  Effective 1 June for existing customers
G&C Mutual Bank0.12%6/05/2016  0.12% only applies to some products
Greater Bank0.25%9/05/2016  Effective 16 May for existing customers
Heritage Bank0.20%23/05/2016
Homestar Finance0.25%5/05/2016
ING DIRECT0.25%20/05/2016
Loans.com.au0.25%4/05/2016  Effective 23 May for existing customers
ME Bank0.05%16/05/2016
ME Bank0.05%16/05/2016
Mortgage House0.25%6/05/2016  Effective 27 May for existing customers
Newcastle Permanent0.25%19/05/2016
P&N Bank0.14%5/05/2016  On one product. No change for the others.
Pacific Mortgage Group0.25%16/05/2016
Qudos Bank0.25%
Queensland Police Credit Union0.25%23/05/2016
Reduce Home Loans0.20%5/05/2016
St.George Bank0.25%23/05/2016
Summerland Credit Union0.25%
Suncorp Bank0.20%25/05/2016  0.15% for investors
Teachers Mutual Bank0.25%12/05/2016  Effective 1 June for existing customers
Yellow Brick Road0.25%9/05/2016  Effective 25 May for existing customers
Your Credit Union0.25%1/06/2016

The table above shows all lenders who have identifed a rate cut. Cuts listed are the max rate cut applied to variable rate products  For a full rate table click here. Calculate your change in monthly repaymentshere.

So has your lender cut?

If not, there’s still time as lenders are expected to be passing on the cash rate cut for another couple of weeks. If you’re sick of waiting for your lender to take action though there’s never been a better time to take the lead.

With the cash rate at a new historic low, and lenders working even harder to compete for customer’s business, negotiating a better rate from your lender or taking your business elsewhere has never been easier.

If your lender hasn’t moved their rate, or you’re currently paying above 4 per cent, now is the time to use the market to your advantage. Contacting your lender and negotiating an interest rate cut should be your first step but if you’re not making any headway it could be time to switch lenders.

Time to refinance  

If you’re considering refinancing to get a better home loan rate the first step is doing some sums to make sure it’s the best move for you. A home loan may have a better interest rate than the one that you’re currently on but if you’re near the end of your loan and you will have to pay application fees to start up a new loan it may not be worth the time and money.

If you do work out the costs and refinancing is the best way to go then the next step is starting to search the market. Using the RateCity comparison table is a great way to sort home loans by interest rate and comparison rate to get a good understanding of the loan’s competitiveness.

You can also use the search filters to find loans that are best suited to your needs by selecting the features you want, the purpose of your loan and the amount you need to borrow. 

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