What lenders have passed on the RBA rate cut?

Posted: 14 May 2015 9:04 am

As the RBA reduced the official cash rate to a record low of 2.00% in May 2015, Australians have waited with crossed-fingers to see which lenders will pass on the full 25 basis point reduction to interest rates.

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

14 May 2015: ANZ was the only one of the Big Four to pass on in full to home loan customers the 25 basis point cut. ANZ lowered its standard variable rate to 5.38% soon after the RBA made their decision earlier this month.

However, the Commonwealth Bank of Australia (CommBank) and National Australia Bank (NAB) did not follow suit. Both CommBank and NAB decided to trim their standard variable rate by 20 basis points. As a result, both of these banks passed on a portion of the rate cut, with their standard variable rates falling to 5.45 percent and 5.43 percent, respectively.

Westpac announced a cut to its variable rate by 0.22 percent to 5.48 percent after the RBA slashed its rate.

LenderRate cutEffective dateFIN_Logo_500x161
ANZ-0.25%Friday 8 May 2015See latest rates
Commonwealth Bank-0.20%Wednesday 13 May 2015See latest rates
NAB-0.20%Wednesday 13 May 2015See latest rates
Westpac-0.22%Monday 18 May 2015See latest rates

Source: finder.com.au, ranked alphabetically. Dates may vary for existing customers. See full list of lenders who have cut their rates here.

Smaller lenders such as ME announced that they would pass on the RBA cut in full, reducing their standard home loan variable rate to 4.88 percent.

The Bank of Melbourne and Bank of Queensland (BOQ) both decided to reduce their home loan standard variable interest rates by 0.20%.

Our finder.com.au Reserve Bank Survey found that 47 percent of industry experts anticipated this cut, with many predicting rate hikes in the near future.

What to do when rates change?

If you’re looking to take out a mortgage, conduct a home loan comparison today with our table below to make an informed decision regarding your home loan. Or if you are looking to refinance to take advantage of the cuts don't just go to one of the big four as there are plenty of lenders out there that may be abel to offer something that is not only cheaper but more suited to your needs.

Why the easing of monetary policy?

The Reserve Bank’s easing of monetary policy has been prompted by below-trend growth, high unemployment levels and weak domestic demand.

The Reserve Bank slashed the cash rate to 2.00% to promote sustainable growth and maintain inflation within target.

By lowering the official cost of borrowing, the Reserve Bank is hoping to improve consumer confidence which will create a stimulus in the economy.

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2 Responses

    Default Gravatar
    IMay 21, 2015

    How to borrow a combination of fixed and variable rates together like 60:40 ratio and how we agree to pay bank Principal amount more than interest amount rather than bank get more interest back as compared to Principal amount thanks

      Default Gravatar
      JodieMay 29, 2015

      Hi Adesh,

      Thank you for your inquiry.

      You can choose to split your home loan. A split rate home loan is when you divide your loan into two (or more) portions; one locked into a fixed rate and the other variable. You may compare lenders that allow split facility home loan.Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.

      I also recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.


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