Media Release

Interest Rate Update: 22 lenders announce rate cuts including all Big 4

  • 22 lenders announce rate cuts since RBA cash rate announcement on Tuesday February 3, 2015
  • All 4 big banks have announced rate cuts
  • Borrowers will be $82/month out of pocket

February 6, 2015, Sydney – Comments by Michelle Hutchison, Money Expert at comparison website finder.com.au:

"With all four major banks now announcing rate cuts, the total number of lenders to so far make announcements is 22 according to finder.com.au.

"Six lenders announced cuts yesterday including AMP, ANZ, BankVic, National Australia Bank, P&N Bank and RAMS.

"Twenty-one of the 22 lenders have announced variable home loan rate cuts of 0.25 percentage points, while Westpac still remains the only lender to move beyond the Reserve Bank cut, passing on 0.28 percentage points.

"There has only been one lender to so far drop its variable rates this week, with Loans.com.au cutting rates effective Wednesday February 4, 2015. BankVic follows by reducing its rates on February 9 then ANZ on February 12. The remaining 19 lenders will pass on the Reserve Bank's rate cut from February 20-27.

"Despite the rate cuts, the average borrower with a $300,000 home loan will still be $82 out of pocket per month on average because most lenders haven't passed on the full rate cuts since November 2011.

"Borrowers with a $700,000 home loan are missing out on almost $200 on average per month.

"But since November 2011, borrowers with an average $300,000 home loan will be paying $400 less in monthly repayments when the latest round of rate cuts kick in next month. For a $700,000 mortgage, that's almost $1,000 less in monthly repayments.

"Borrowers can get even more if they compare home loans and ask their lender for a discount. Variable rate home loans are now starting from as low as 4.23 percent by Loans.com.au so if you have a variable home loan, keep an eye on your rate and don't settle for paying more than you need to."

Click here to view a table of the lenders that have so far announced rate cuts and we will be updating this page as we hear more announcements: finder.com.au/rba-cash-rate

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

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