The Big Four and many other lenders drop mortgage rates as the cash rate falls
The cash rate has fallen by 0.25%. Here are the lenders passing on the cut to borrowers.
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%|
|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%|
|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%|
|Macquarie Bank||-0.25||June 21||3.34%|
|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:
- Check your interest rate then check your lender's website. Is your lender offering a lower rate to new customers?
- Compare the latest rates from across the market. There might be much lower rates offered by other lenders.
- Ask your lender to pass on the rate cut to you. It never hurts to ask.
- 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.