Find out when each lender's rate reduction takes effect
The Reserve Bank of Australia (RBA) has lowered the cash rate by 25 basis points on Tuesday, bringing it down from 4.35% to 4.10%. Following the announcement, a number of lenders – including the Big Four – have confirmed adjustments to their variable rate home loans.
Athena was the first lender to implement the rate cut, reducing rates by 25 basis points (bps) effective immediately on Feb. 18. The lender’s lowest advertised variable rate is now 5.99%.
Other lenders have scheduled their rate reductions for later dates. Unloan will adjust rates on Feb. 21, followed by Defence Bank, and Ubank on Feb. 27. Bankwest, Macquarie Bank, Suncorp, Teachers Mutual Bank, and Yellow Brick Road will apply their rate cuts on Feb. 28.
While some lenders have opted for an immediate response, others are taking a more gradual approach, with effective dates stretching into early March, according to a list compiled by financial comparison website Savings.com.au.
Bank Australia, Bank of Melbourne, BankSA, ING, Resimac, St. George, and The Mutual Bank will implement the 25-bps reduction on March 4. Homeloans.com.au, Pepper Money, and State Custodians will follow on March 5, while Greater Bank and Newcastle Permanent will apply the cut on March 7.
Many lenders have yet to disclose plans to reduce mortgage rates.
Greens Treasury spokesperson Nick McKim has urged banks to go further in reducing borrowing costs.
“Bank corporations are happy to increase their mortgage rates by more than the RBA puts them up when it suits them,” he said. “They should do the same now rates are falling.”
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