The suspense is killing me: Only 1 in 3 lenders have announced rate cuts
Despite years of high-rate pain, many lenders have yet to announce plans to drop their rates for stressed mortgage holders, according to new analysis by Finder.
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The Reserve Bank of Australia (RBA) announced a 25-basis-point reduction to the official cash rate on Tuesday, bringing it down to 4.10% from 4.35%.
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This marks the first rate cut since December 2020 and follows 13 consecutive hikes that pushed rates to their highest level since 2011.
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Commonwealth Bank, ANZ, NAB and Westpac have all announced they will implement the full 25-point reduction – taking anywhere from 10 to 17 days to pass on the cut to borrowers.
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This delay alone – which is roughly in line with their timing on rate hikes in 2022 – will cost Aussies roughly $92 million in interest, according to analysis by Finder.
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Collectively, the Big Four hold $1.546 trillion in owner-occupied mortgages – or nearly 72% of the market – according to Finder's analysis of Australian Prudential Regulation Authority (APRA) data.
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Australian mortgage holders could save $103 a month if the rate cut is passed on in full by their lender, based on the average home loan of $641,416.
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Graham Cooke, head of consumer research at Finder, said Aussie homeowners have a right to be upset if their lender isn't announcing a cut.
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"Every extra day without a cut leaves many Aussie homeowners with tighter budgets.
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"If your bank isn't looking out for you when all eyes are on an RBA cut, when will it?"
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Cooke said refinancing is the best way to save on your mortgage costs.
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"Social media was full of Aussies celebrating their bank announcing a 25-point cut on Tuesday – and it was refreshing to see some lenders announce they will be passing on the full rate cut.
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"The reality is you can likely save more than a couple rate cuts by switching to a better deal.
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"A reduction of even half a percent can be the difference of thousands of dollars a year.
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"Shop around to find a variable home loan that offers a lower interest rate than your current provider. The very lowest rates now have a '5' in front of them."
Top lenders passing on the RBA's February rate cut
| Lender | Variable rate change | Effective date |
| Athena | 25 basis points | 18 February |
| ANZ | 25 basis points | 28 February |
| Commonwealth Bank | 25 basis points | 28 February |
| NAB | 25 basis points | 28 February |
| Suncorp | 25 basis points | 28 February |
| Macquarie Bank | 25 basis points | 28 February |
| Westpac | 25 basis points | 4 March |
| Bank of Melbourne | 25 basis points | 4 March |
| St.George | 25 basis points | 4 March |
| BankSA | 25 basis points | 4 March |
| ING | 25 basis points | 4 March |
| Source: Finder (full list at link) |  |
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