Major Banks are Getting on Board with Record-low RBA Cuts
Major banks and lenders are already adjusting their rates following RBA’s record rate cut to 0.5 per cent on Tuesday, 3 March. Here’s the outlook of what loans will be available for you in the days to come:
Westpac Group, which includes subsidiaries Bank of Melbourne, BankSA, and St George Bank was the first major bank to react to RBA’s announcements, cutting rates by 25 bps for a variety of loans.
From Tuesday, 17 March 2020, Westpac will make the following changes:
- Variable home loan (owner-occupier) rates will be reduced by 25 bps to 4.58 per cent for customers with principal and interest terms
- Variable residential investment property loan rates will be reduced by 25 bps to 5.13 per cent for customers with principal and interest terms
- Variable home loan (owner-occupier) rates will be reduced by 25 bps to 5.17 per cent for customers with interest-only terms
- Variable residential investment property loan rates will be reduced by 25 bps to 5.39 per cent for customers with interest-only terms
- Variable interest rates on small business cash-based loans and overdrafts will be cut by 25 bps
Commonwealth Bank of Australia
The Commonwealth Bank of Australia (CBA) has jumped on board with RBA’s cut in full, reducing variable rates by 25 bps as well. CBA will make changes, starting from 24 March, with home loan rates starting from 4.55 per cent.
Reducing the rates by 25 bps across its loans, NAB is on track with the industry changes. Effective from 13 March 2020, NAB’s advertised Tailored Home Loan variable rates will start from 4.52 per cent but will vary depending on the loan.
ANZ has responded to the RBA’s cut with mortgage rate reductions of between 25 bps and 35 bps. Effective from 13 March, ANZ’s rates for home loans will start from 4.54 per cent, depending on the loan.
Athena Home Loans
Athena Home Loans has also lowered its mortgage rates by the full 25 bps, effective immediately. Their variable owner-occupier rates now start from 2.59 per cent.
Affective immediately from Wednesday 4 March, Neobank 86 400 passed on the full rate cut for their customers. 86 400’s variable rate for owner-occupiers now starts from 2.84 per cent.
Reduce Home Loans
Reduce Home Loans adjusted their loans to the full rate cut, now with rates for owner-occupier home loans starting from 2.44 per cent, and investment loans from 2.79 per cent.
Homestar Finance has reduced rates by 25 bps for new and existing customers, effective immediately, with rates starting from 2.53 per cent.
This lender has cut rates by 25 bps, with its home loans now starting from 2.52 per cent.
More to come
With so many banks jumping on board with the rate cuts, it is a great opportunity to consider refinancing your current home loan. Book a free consultation with one of our mortgage brokers to find out how you can take advantage of the record-low rates.