Australia’s two biggest banks, CBA and Westpac, have committed to passing on the full 0.25 per cent rate cut to their variable customers on the back of today’s emergency cash rate cut by the RBA.
Westpac’s average home loan customers will be $55 a month and $662 a year better off as a result, while CBA’s average customer will save $58 a month and $691 a year, based on their current discounted variable rates on a $400,000 home loan.
Standard Variable Rate
Discounted Variable Rate
Lowest variable rate
So far 10 lenders have announced their rate cuts, on the back of today’s announcement. See RateCity’s live list of rate cuts here.
RateCity research director Sally Tindall said: “This must have been a tough decision for the big banks, but it’s the right decision both for their customers and the economy.”
“This decision from the big banks will put pressure on the other lenders to follow suit and pass the cut on in full to new and existing customers.
“This is money that will give many families that little bit of extra breathing space, and take pressure off the never ending cycle of bills, groceries and the mortgage payment.
“We’ve now got two of Australia’s biggest banks offering variable rates under 3 per cent,” she said.
LIVE UPDATES: www.ratecity.com.au/rba-cash-rate.
|Lender||Cuts||New lowest variable rate||Effective date|
|St George||0.25%||2.69%||17 March|
|Bank of Melbourne||0.25%||2.69%||17 March|
|Homestar Finance||0.25%||2.44%||1 April existing customers, immediately new customers|
|Reduce Home Loans||0.25%||2.44%||Immediately|
|86 400||0.25%||2.84%||4 March|