More than 50 lenders have committed to reducing variable rates on home loans, three days after the Reserve Bank of Australia slashed the official cash rate to a new record low of 0.50 per cent.
Of the 55 that have announced rate cuts, 47, including the big four, intend to pass on the full cut of 0.25 basis points, likely due to political pressure from Prime Minister Scott Morrison.
This is in stark contrast to the previous cut in October 2019, where only 16 of the 66 lenders that lowered their rates passed on the full cut.
After the October cut, the big four banks only passed on an average of 0.14 per cent to their owner-occupier customers on variable rate loans, RateCity research shows. This average dropped from 0.21 per cent after the July cut and 0.22 per cent following the June cut.
Notably, several banks intend to pass on a cut of 0.25 per cent or more for investor customers only, suggesting some lenders may be ramping up efforts to chase business from investors.
For example, ANZ has announced it will pass on the full cut to owner-occupiers but a bigger cut of 0.35 per cent for investors on interest-only mortgages.
- Has your lender announced rate cuts yet? Keep track of rate changes with our RateCity Rate Tracker.
The lenders that have announced cuts to owner-occupier home loan rates
|Lender||Rate cut for variable home loans (%)||Notes||Date effective|
|86 400||-0.25||March 4th|
|Adelaide Bank||-0.25||March 27th|
|AMP Bank||-0.25||March 13th|
|ANZ||-0.25||-0.25 for owner-occupier P&I and interest-only, plus investor P&I||March 13th|
|Athena Home Loans||-0.25||March 3rd|
|Australian Military Bank||-0.25||March 26th|
|Auswide Bank||-0.25||March 5th and 27th (depending on loan)|
|Bank Australia||-0.25||March 24th|
|Bank First||-0.25||March 25th|
|Bank of Melbourne||-0.25||March 17th|
|Bank of Queensland||-0.17||April 3rd|
|Bendigo Bank||-0.25||March 27th|
|Coastline Credit Union||-0.25||March 1st|
|Commonwealth Bank of Australia||-0.25||March 24th|
|Community First Credit Union||-0.10||March 30th|
|Defence Bank||-0.25||March 12th|
|Firstmac||-0.25||Existing customers only||March 26th|
|Freedom Lend||-0.25||-0.25 in general, -0.20 for special loans||March 3rd|
|Greater Bank||-0.25||Existing customers only||March 23rd|
|Heritage Bank||-0.20||March 25th|
|Homestar Finance||-0.25||March 3rd|
|Hume Bank||-0.20||Existing customers only||March 18th|
|Hunter United||-0.15||March 13th|
|IMB Bank||-0.25||March 24th|
|Liberty Financial||-0.25||March 24th|
|loans.com.au||-0.25||Existing customers only||March 26th|
|Macquarie Bank||-0.25||March 19th|
|ME Bank||-0.25||Existing customers only||March 26th|
|MyState Bank||-0.25||March 31st|
|Newcastle Permanent||-0.25||March 24th|
|P&N Bank||-0.25||March 20th|
|People's Choice Credit Union||-0.25||Existing members only||March 17th|
|Pepper Money||-0.25||Existing customers only||March 16th|
|Qudos Bank||-0.25||March 23rd|
|Reduce Home Loans||-0.25||TBC for existing customers||March 3rd|
|Resimac||-0.25||Existing customers only||March 26th|
|St George Bank||-0.25||March 17th|
|Suncorp Bank||-0.25||March 20th|
|The Capricornian||-0.20||Cut applies to Standard Variable Loans only||March 23rd|
|The Mutual||-0.25||March 16th|
|Virgin Money||-0.17||April 3rd|
*Data correct as of 3pm, March 6th 2020.