Home loan lenders continue to cut their mortgage rates

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ING, Bank of Queensland, Virgin Money, Qudos Bank and Newcastle Permanent have moved their variable interest rates since the last RateCity.com.au update yesterday.

ING, the nation’s fifth largest home loan lender chose to pass the full 0.25 per cent cut on to their variable rate customers, effective 25 June 2019. This takes their lowest variable rate loan down to 3.34 per cent for loans above $1 million and 3.38 per cent for loans below $1 million.

BOQ is only passing 0.15 per cent on to their most popular product, the Clear Path variable rate package for owner occupiers paying principal and interest. All other variable rate loans will be cut by the full 0.25 per cent.

Virgin Money is passing on 0.22 per cent to their variable rate customers

These announcements came after the RBA cut the cash rate to a historic low of 1.25 per cent. Wholesale funding costs have reduced significantly over the last few months as well. 

Popular banks still yet to announce their intentions include BankWest, Bendigo Bank, Adelaide Bank, ME Bank, HSBC and AMP.

Lender Rate change Date effective Lowest ongoing variable rate Comments
ANZ -0.18% 14/06/2019 3.63%
CBA -0.25% 25/06/2019 3.54%
NAB -0.25% 14/06/2019 3.54%
Westpac -0.20% 18/06/2019 3.78% Investors paying IO get 0.35%
Athena Home Loans -0.25% 04/06/2019 3.34%
BCU -0.25% 01/07/2019 3.54%
RACQ Bank -0.25% 10/06/2019 TBC
Reduce Home Loans Up to-0.25% 04/06/2019 3.19% Up to 0.25% for current customers
Macquarie Bank -0.25% 21/06/2019 3.44%
Auswide Bank -0.25% 06/06/2019 3.69% Only cut on one product
Homestar Finance -0.25% 04/06/2019 3.24%
St.George Bank -0.20% 18/06/2019 3.58%
BankSA -0.20% 18/06/2019 3.59%
Bank of Melbourne -0.20% 18/06/2019 3.54%
Suncorp Bank -0.20% 21/06/2019 3.49%
RAMS -0.20% 18/06/2019 3.79%
Greater Bank -0.25% 11/06/2019 3.57%
Newcastle Permanent -0.25% 17/06/2019 3.47%
ING -0.25% 25/06/2019 3.34%
Virgin Money -0.22% 25/06/2019 3.56%
BOQ up to -0.25% 25/06/2019 3.74% Only a 0.15% rate cut for Clear Wealth customers
Qudos Bank Up to -0.25% 25/06/2019 N/A Full rate cut on “most” loans

Keep across the changes with RateCity’s live list of who is cutting, by how much and when: https://www.ratecity.com.au/rba-cash-rate.

Term deposits

We saw a huge flurry of cuts to term deposits in the lead up to Tuesday’s RBA rate announcement, as banks moved to price the expected cut in. Over 50 banks have cut term deposit rates in the past two months.

This week, the term deposit rate cuts continue to come in, particularly from Westpac and ANZ. A stocktake of the big 4 banks below:

  • ANZ has cut almost 20 term deposit rates and has hiked just a couple since Tuesday. The biggest cut on our database is 0.60 per cent
  • Westpac has also changed a range of term deposit rates since the beginning of the week, cutting by up to 0.50 per cent and increasing one by 0.25 per cent. Westpac’s at-call deposits remain under review
  • CBA has not changed to date
  • NAB has not changed to date

RateCity.com.au’s research director Sally Tindall said Tuesday’s rate announcement was like rubbing salt into a wound for savers.

“It’s been a tough slog for savers over the last three years, and while a range of factors influence deposit rates, we’re expecting them to sink even further.

“It is especially frustrating to see ANZ and Westpac hold back part of a home loan rate cut with one hand and slash some of their deposit rates with the other.

“It does still pay to shop around. Right now, you can find term deposit and savings rates that offer up to around 3 per cent, however, these rates are unlikely to last for long,” she said.

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