Finder makes money from featured partners, but editorial opinions are our own.

Which banks are passing on the RBA rate cut?


oz moneyWill you save on your home loan? We've rounded up every bank that has announced changes.

LATEST: Which banks are passing on the August 2016 RBA interest rate cut?

The RBA cut against experts’ expectations today when it trimmed the official cash rate to 1.75%. The move brings Australia’s official cash rate to a record low.

Within moments of the announcement, NAB announced it would reduce its variable rate for home loans by 0.25%, becoming the first bank to pass on the cut. Bank of Queensland, Westpac, Commonwealth Bank and ANZ have since followed suit. We've rounded up the changes in the table at the end of this post.

We'll be updating this list as additional banks get on board, so keep checking back. Meanwhile, learn about how much money the banks make by not immediately introducing the cuts.

The cut brought NAB’s new standard variable rate from 5.60% to 5.35%, and will be effective from 16 May. NAB group executive of personal banking Gavin Slater said the bank took more into account in its decision than the surprise move by the RBA.

“The circumstances of each decision will always vary and we must take into account factors such as competition, regulatory capital requirements and funding costs. Today’s decision balances the needs of our home loan customers with our shareholders,” Slater said.

Bank of Queensland followed soon after, announcing it would also cut interest rates by 0.25% from 18 May. The move comes less than a month after the bank raised rates by 0.12% for owner-occupiers and 0.25% for investors.

Commonwealth Bank confirmed in a tweet that it would be cutting its standard variable home late rate by 0.25%, dropping it to 5.35% from 20 May. Westpac is cutting its rates by 0.25%, dropping its variable rate for owner occupiers to 5.43% (comparison rate 5.75%) from 23 May.

ANZ also confirmed via a tweet that it is cutting its rate, but only by 0.19%, not the full 0.25%. Its standard variable rate is now 5.37%. The change at ANZ takes effect 13 May, which is the earliest cut we've seen so far.

In announcing its decision to cut rates, the Reserve Bank board cited recent sluggish inflation figures.

“Inflation has been quite low for some time and recent data were unexpectedly low. While the quarterly data contain some temporary factors, these results, together with ongoing very subdued growth in labour costs and very low cost pressures elsewhere in the world, point to a lower outlook for inflation than previously forecast,” RBA governor Glenn Stevens said.

Stevens said lower lending rates as a result of the cut were unlikely to spark unsustainable housing growth.

“In reaching today's decision, the Board took careful note of developments in the housing market, where indications are that the effects of supervisory measures are strengthening lending standards and that price pressures have tended to abate. At present, the potential risks of lower interest rates in this area are less than they were a year ago.”

Lender (Announced changes)Rate cutEffective dateDays after announcement
Adelaide Bank-0.17%30 May 2016#27
AMP-0.20%23 May 2016#20
ANZ-0.19%13 May 201610
Aussie Home Loans-0.19%*25 May 201622
Australian Military Bank-0.25%27 June 2016#24
AusWide Bank-0.20%25 May 201622
B & E Personal Banking-0.20%17 May 201614
Bank Australia-0.10%13 May 201610
Bank of Melbourne-0.25%23 May 201620
Bank of Queensland-0.25%18 May 201615
Bank of Sydney-0.27%27 May 201624
bankSA-0.25%23 May 201620
BankVic-0.25%16 May 201513
Bankwest-0.20%20 May 201617
Beyond Bank-0.10%20 May 201617
Bendigo Bank-0.20%30 May 2016#27
Big Sky-0.25%31 May 2016#28
Citi-0.21%23 May 201620
Commonwealth Bank-0.25%20 May 201617
Credit Union SA-0/10%17 May 201614
CUA-0.25%19 May 201616
First Option CU-0.25%9 May 20166
Firstmac-0.25%23 May 2016#20
G&C Mutual-0.12%6 May 20163
Greater Bank-0.25%16 May 2016#13
Heritage Bank-0.20%23 May 201620
Homestar Finance-0.25%5 May 20162
Horizon Credit Union-0.20%1 June 2016#29
HSBC-0.25%23 May 2016#20
Hume Bank-0.15%25 May 201622
Hunter United Credit Union-0.25%1 June 2016#29
IMB-0.20%25 May 201622
ING DIRECT-0.25%20 May 201617 May 201620
ME Bank-0.05%16 May 201513
Mortgage House-0.25%6 May 20163
MyState Financial-0.23%17 May 201614
NAB-0.25%16 May 201613
Newcastle Permanent-0.25%19 May 201616
People's Choice Credit Union-0.21%17 May 201614
Pepper-0.25%***23 May 201620
QLD Police Credit Union-0.25%23 May 201620
Qudos Bank (formerly Qantas Credit Union)-0.25%19 May 201616
Queenslanders Credit Union-0.15%24 May 2016#21
RAMS-0.25%23 May 201620
SCU-0.20%17 May 201614
St.George Bank-0.25%23 May 201620
State Custodians-0.25%**30 May 201627
Suncorp-0.20%25 May 201622
Teacher's Mutual Bank-0.25%12 May 20169
The Mutual-0.25%6 June 201634
The Rock Building Society-0.23%17 May 201614
UBank-0.25%16 May 201613
Westpac-0.25%23 May 201620
Yellow Brick Road-0.25%25 May 2016#22
Your Credit Union-0.25%1 June 201629

The above effective dates are for rates relating to new borrowers only unless otherwise indicated.
#These effective dates are applicable for new and existing customers as per the lenders announcement.

*Aussie Home Loans is dropping its Aussie Select Variable Home Loan by 0.19%, while its Optimiser Principal and Interest Variable rates will be cut by 0.25% for owner occupiers and 0.20% for investors.

** For variable investment loans, State Custodians will only be passing on its full rate cut to loans settled after 1 March 2016.

*** This are for new customers. Rates for existing customers remain unchanged.

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our 1. Terms Of Service and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

36 Responses

    Default Gravatar
    MikeJune 4, 2016

    Looks like Mac Bank have done the same to me, not passed on a basis point of the RBA cut. Outrageous after they stated they would pass on 0.20% on 9th May. Neither have they contact me with any explanation. Time to stop this gouging behaviour!

    Default Gravatar
    FrankJune 1, 2016

    I called Macquarie Bank today to find out why the interest rates on my home loans had not been reduced in line with what they had promised their customers (0.20% for Investment – 0.25% for Owner Occupied). I was put through to the Pricing team who said that they had an algorithm for working out who would get the cut and who would miss out.

    I missed out….no missed repayments ever….they didn’t pass on any of the cut on and I am furious. I’m already on to my broker about refinancing.

    Default Gravatar
    DomMay 23, 2016

    Do you know if Liberty Finance will pass on the cut?

      Default Gravatar
      dhangJune 6, 2016

      Received letter from liberty just now and good news they pass .19%.

      MarcMay 25, 2016Finder

      Hi Dom,
      thanks for the question.

      Unfortunately they haven’t announced any changes yet, but I’m currently monitoring them and will update this table as soon as we hear from them regarding a change.

      Thanks for stopping by!

    Default Gravatar
    MelMay 23, 2016

    So how Institutions have not pass on any rate reduction yet?

      Default Gravatar
      JodieMay 23, 2016

      Hi Mel,

      Thank you for reaching out to, there are about a handful of lenders that we have not seen official announcements regarding reducing rates however as multiple lenders have just chosen to update their interest rates rather than making an announcement this may also be the case for the lenders we have not heard from.


    Default Gravatar
    PeterMay 20, 2016

    Thanks for providing this list – glad someone is keeping an eye on the banks and letting people know which banks are responsive to RBA interest rate reductions, and which banks are trying to sneak under the radar and not get noticed. Previously you showed ALL banks in the list, including those which have not yet announced their decision (which you indicated with “TBA”). Now it appears you are only showing the banks which have made a decision. Can you bring back the full list? I think it is useful because it gives your readers an idea about what *proportion* of banks have responded. I’m still waiting for my bank – State Custodians – to advise how they will respond (all I get is a robotic response that they haven’t decided and don’t know when they will decide). I’m keen to know whether they are just one of a few banks left, or whether there are still a lot of banks out there who are hoping people will forget about the rate drop earlier this month. It’s almost 3 weeks now since the RBA’s decision – surely that’s enough time to announce a response, you’d think…

      Default Gravatar
      JodieMay 23, 2016

      Hi Peter,

      Thank you for contacting and for your feedback on our tables. We always appreciate hearing from our readers and what they think of how we present the information we have.

      In terms of the second table, we have removed this as it was duplicating a lot more than when we first published as all the major lenders have made their announcements and the lenders that are still left to announce are the more regional or smaller lenders. There has also been a few lenders that have not made any announcement but have chosen to simply update the interest rates on their website, which makes tracking the announcements for these a bit more difficult.

      With regards to State Custodians they responded to a customer query on the 21 May on State Custodians Facebook page mentioning that they would be passing on the rate cut in full effective 30 May 2016.


      Default Gravatar
      PeterMay 23, 2016

      From the Facebook page you linked, it looks like State Custodians will only reduce rates for owner occupied loans and NEW investor loans (after 1 March 2016), which is very disappointing for their existing investor home loan customers as shown in comments on their Facebook page. Perhaps you can update your table with this information, similar to how you’ve noted the rate cuts for Aussie Home Loans which vary depending on the product.

      MarcMay 25, 2016Finder

      Hi Peter,
      thanks for the suggestion!

      I’ve made a note of this under the table.


Go to site