Press Release

For immediate release

Information verified correct on December 7th, 2016

Interest Rate Update: 30 lenders announce rate cuts

  • One week since RBA rate cut announcement, 30 lenders announce cuts
  • 90 lenders yet to announce cuts
  • ANZ first to pass on cash rate cut

May 12, 2015, SYDNEY

Comments by Michelle Hutchison, Money Expert at one of Australia's biggest comparison websites finder.com.au:

"We're one week in since the Reserve Bank's cash rate cut to a historic low of 2% and 30 lenders, including the big four banks, have been quick to come to the party announcing interest rate cuts to their variable home loans.

"However, there's a big difference between when these interest rates will be effective, with ANZ the first to pass on the cash rate cut on May 8, 2015. It's followed by BankVic and Yellow Brick Road on May 11, and NAB and Commonwealth Bank's new rates will both be effective from tomorrow (May 13).

"The remaining big four bank – Westpac – won't be passing on its rate cut until May 18. Horizon Credit Union and Northern Inland Credit Union are the slowest to pass on the cash rate cut, with an effective date of June 1.

"To date, of the 30 lenders who have announced cuts to their variable home loan rates, less than half (14 lenders) have passed on the full cut of 0.25 percentage points, with 16 passing on less than this.

"It's a lousy response considering this represents one quarter of all home loan lenders on finder.com.au's database. Of the 120 lenders on our database, there are 90 that are yet to make any announcement regarding passing on a cut to their variable home loan customers.

"While a rate cut that mirrors the RBA's cut of 0.25 percentage points is of course welcome news for borrowers, it's important to focus less on the rate your lender has cut by and more on the overall rate they are offering you. If you're not satisfied, a better rate is worth pursuing – a small change to your interest rate can save you thousands of dollars in the long run.

"And of course if your lender hasn't yet announced a cut, get in touch and demand a discount. With so much choice in today's market, now is an exciting time for borrowers and they shouldn't be taken advantage of by lenders who are taking their time passing on rate cuts. My message for these lenders: What are you waiting for?"

Click here for the full list of lenders that have so far announced variable home loan rate cuts:

www.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.

About finder.com.au:

finder.com.au is one of Australia’s biggest comparison websites and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au or creditcardfinder.com.au to find better (Source: Google Analytics).

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