Every lender passing on the RBA’s surprise second March 2020 rate cut
Check if your lender is passing on the cut and offering you a lower variable mortgage rate (and if they're not, we'll tell you what to do about it).
The Reserve Bank has cut the official cash rate for the second time in just one month, dropping the rate to 0.25%.
We're in bizarre circumstances. The cash rate has never been so low and the RBA convening an emergency meeting to cut again just weeks after the previous cut is extraordinary.
But these are extraordinary times, with COVID-19 sweeping the globe and causing economic turmoil (not to mention biological danger).
However, if you have a variable rate home loan, your repayments could get lower. A lower cash rate means lower borrowing costs for lenders, and they often pass the savings on to borrowers in the form of lower variable interest rates.
Check the table below to see who is cutting and when. Below that, you can read our tips for borrowers who aren't getting a good deal.
Who is cutting rates, when and by how much?
We're updating this table as lenders announce their cuts. This table contains the new lowest variable owner-occupier rate for each lender plus the effective date.
|Lender||Change||Effective date||Lowest variable offer|
|CBA||No change (fixed rates will drop instead)||30 March||2.97% (unchanged)|
|NAB||No change (fixed rates will drop instead)||25 March||2.84% (unchanged)|
|Hunter United||-0.15||27 March||2.79%|
*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.
Unlike in previous cuts, few lenders are passing cuts on this time. Others may decide to cut later. Interestingly, many of the bigger lenders have instead cut their fixed rates for new products. NAB's lowest fixed rate offer for first home buyers will be 2.19%, which is very low indeed.
What if my lender isn't on the list above?
First of all, don't panic. Check your lender's website in the coming days. Some lenders take a day or two to respond to the cut.
Also, check your loan. Do you have a variable rate mortgage? Or is your rate fixed? If it's fixed you won't see any benefits from the RBA's cut.
Now, if it looks like your lender isn't cutting rates and you're missing out on a better deal here's what you can do:
- Compare rates from across the market. Look at current rates to get a clear sense of what a good deal looks like. Compare these rates to your current loan.
- Talk to your lender. It never hurts to ask for a discount. If your lender agrees, you've saved money with a single phone call. If not, it's time to leave.
- Find a new mortgage. Compare your options and find a new loan with a lower rate. This will save you money. Calculate your savings and make sure the new loan suits your borrowing needs.
- Contact your new lender and start an application. You'll need to apply for a whole new home loan, so that requires some paperwork.
- Wait for approval. If you're successful your new lender will help you discharge your old loan and take it over. Bang, you've refinanced. Well done.
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