Here is a summary of how the big four banks have responded to the emergency RBA cash rate cut amidst the coronavirus crisis.
CBA
Home loans:
- 70-basis point cut to 1-, 2-, and 3-year fixed rates – all to 2.29%.
- No cuts for variable home loan customers.
- Reduction of repayments to minimum required under their loan contract & easier access to overdraft facilities.
- Hardship support – deferral of business term loan repayments and overdrafts up to six months.
Term deposits:
- 12-month term deposit rate hiked 60 basis points to 1.70%.
Small businesses:
- 1.00% reduction to cash-linked small business loans.
- Hardship support – deferral of business term loan repayments and overdrafts.
- Deferring repayments on vehicle and equipment finance loans and providing tailored restructuring options that meet individual customer needs.
- Waiving of:
- Merchant terminal fees
- Redraw fees
- Early redraw fees
- Establishment fees and excess interest on Temporary Excess products.
Westpac
Home loans:
- 90-basis points cuts to 1-, 2-, and 3-year fixed rates – all to 2.19%.
- No cuts for variable home loan customers.
- Hardship support – deferral of home loan repayments for six months.
Term deposits:
- Special 12-month term deposit of 1.70%.
Small businesses:
- 1.00% reduction to variable interest rates on small business cash-based loans.
- Overdrafts reduced by 2.00%.
- Hardship support – deferral of business term loan repayments for six months.
- Merchant terminal rental fee waivers for up to three months.
NAB
Home loans:
- 60-basis points cut to fixed rates – lowest to 2.19%.
- No changes to home loan variable rates.
- Hardship support – deferral of home loan repayments up to six months.
Term deposits:
- Introduced a 10-month term deposit rate of 1.75% on deposits of $5,000 to $2 million from 24 March.
Small businesses:
- Hardship support: Deferral of principal and interest for up to six months on a range of business loans, including floating and variable rates, and equipment finance loans. Also deferral of business credit card repayments.
- 200-basis point rate cut on new loans and all overdrafts on QuickBiz from 30 March.
- Additional 100-basis point cut on variable rates for small business loans, effective 30 March, on top of a 25-bps reduction earlier in March.
- Access to up to $65 billion in additional secured limits to pre-assessed customers, with $7 billion currently available for fast assessment process.
- Access to up to $9 billion in additional limits for unsecured lending for existing customers via QuickBiz.
ANZ
Home Loans:
- 49-basis points cut to fixed rates – lowest to 2.19%.
- Cut variable rates for both new and existing home loan customers by 0.15 per cent from 27 March.
- Hardship support – deferral of home loan repayments up to six months.
Small businesses:
- Cut variable interest small business loan rates in Australia by 0.25%, effective from 27 March 2020, resulting in a 0.50% pa reduction since last week.
- 80-basis points cut to fixed rates – cut to 2.59% for secured small business loans up to $1 million, effective 3 April 2020.
- Hardship support - all impacted customers can request a six-month payment deferral on loan repayments for term loans, with interest capitalised.
- Made temporary increases in overdraft facilities for 12 months available.