The Big Four and many other lenders drop mortgage rates as the cash rate falls

Posted: 5 June 2019 11:07 am News

Dominoes falling over.

The cash rate has fallen by 0.25%. Here are the lenders passing on the cut to borrowers.

This is a news article about the June cash rate cut. Please visit this page for information about the most recent July cut.

A cut to the RBA cash rate has sent variable rates falling as lenders pass on cheaper borrowing costs to consumers.

For buyers looking to get a mortgage this is good news. Lower rates on offer means better deals and lower repayments. And if you already have a mortgage it's vital that you see if your lender has passed on the cut. If not, it's time to think about refinancing your loan.

Who is cutting rates?

Lender Cut (basis points) Effective date Standard variable rate Lowest variable offer
Commonwealth Bank -0.25 June 25 5.12% 3.54%
ANZ -0.18 June 14 5.18% 3.63%
Westpac -0.20 June 18 5.18% 3.78%
NAB -0.25 June 25 5.11% 3.54%
St.George -0.20 June 18 5.16% 3.63%
Bank of Melbourne -0.20 June 18 5.14% 3.59%
Bank SA -0.20 June 18 5.15% 3.59%
Athena Home Loans -0.25 June 4 3.34%
Reduce Home Loans -0.25 June 4 3.19%
Community First Credit Union -0.10 June 3 3.59%
Credit Union SA -0.20 June 3 3.59%
Homestar -0.25 June 4 3.24%
RACQ -0.25 June 12 3.44%
Greater Bank -0.25 June 11 3.57%
Bank of Queensland -0.25 June 25 3.44%
Virgin Money -0.22 June 25 3.47%
Newcastle Permanent -0.25 June 17 3.47%
ING -0.25 June 25 3.34%
Macquarie Bank -0.25 June 21 3.34%
Suncorp -0.20 June 21 3.44%
RAMS -0.20 June 18 5.21 3.21%
IMB -0.25 June 21 3.54%
ME Bank -0.25 June 27 3.54%

*This table will be updated as more rate cuts are announced. Cuts are for variable owner occupier rates only and won't necessarily affect all of a lender's products. Rates in the lowest offers column may not be available until the effective date.

How can I take advantage of a cut to the cash rate?

Even if your lender is cutting rates there's no guarantee they're cutting your rate. Here's what you need to do:

  1. Check your interest rate then check your lender's website. Is your lender offering a lower rate to new customers?
  2. Compare the latest rates from across the market. There might be much lower rates offered by other lenders.
  3. Ask your lender to pass on the rate cut to you. It never hurts to ask.
  4. If they won't offer you a better deal then find a lower rate and refinance your mortgage.

Refinancing takes a bit of work. You need to find a new mortgage, apply for it and collect all your paperwork. But once you get approved your new lender takes care of the rest. And the savings can be significant.

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