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Rate Update: More lenders hold back part of the rate cut

A growing number of banks have decided not to pass on the full 0.25 per cent RBA rate cut.

Australia’s second largest bank Westpac, and its subsidiaries St George, Bank of Melbourne, Bank SA and RAMS will pass on a 0.20 per cent cut to their owner-occupier customers.

They are however, cutting investor interest-only rates above and beyond the RBA, by 0.35 per cent.

Suncorp Bank has also announced it will cut all variable home loan interest rates by 0.20 per cent, effective 21 June.

This follows ANZ’s decision yesterday to pass on just 0.18 per cent – the smallest cut to date.

RateCity.com.au research director Sally Tindall said by holding back part of the cut for themselves, these banks risk angering their loyal customers.

“A lot of Westpac and ANZ variable rate customers will be frustrated by this news, but it’s important for them to remember, they don’t have to take it lying down,” she said.

“One of the best things about being on a variable rate is that you’re well within your rights to take your business elsewhere.

“Check whether your lender is passing on the rate cut, but also see what the competition is offering, because ultimately the lower the comparison rate, the more money you’re likely to have left in your pocket.

“Although it’s good to see Australia’s largest bank, CBA, pass on the full cut, it’s a pity they are making their customers wait three weeks before they see any savings.”

For a live list of who’s moved visit: ratecity.com.au/rba-cash-rate.

Big bank moves for owner occupiers paying principal and interest

Bank

CutNew standard variable rate

New discounted variable rate

New lowest variable rate

CBA0.25%

5.12%

4.52%

3.54%

Westpac

0.20%

5.18%

4.38%

3.78%

NAB

0.25%

5.11%

4.26%

3.54%

ANZ

0.18%

5.18%

4.38%

3.63%

Note: ANZ and NAB rates effective 14 June 2019, Westpac rates effective 18 June and CBA rates are effective 25 June 2019. Rates are for a loan size of $400K.

How much the average ANZ and Westpac home loan customer is missing out on with a $400K loan

BankMissed savings
Monthly
Missed savings
Annual
ANZ$16

$198

Westpac

$11

$141

Note: Based on an owner occupier on a discounted variable rate paying principal and interest over 30 years with a $400K home loan.

Who’s moved already?

LenderRate change

Date effective

New lowest rate

ANZ

-0.18%

14/06/2019

3.63%

CBA-0.25%

25/06/2019

3.54%

NAB-0.25%

14/06/2019

3.54%

Westpac

-0.20%

18/06/2019

3.78%

Reduce Home Loans

up to -0.25%

4/06/2019

3.19%

Athena Home Loans

-0.25%

4/06/2019

3.34%

RACQ Bank

-0.25%

from 10/06/2019

3.44%

Macquarie Bank

-0.25%

21/06/2019

3.44%

BCU

-0.25%

1/07/2019

3.54%

Auswide

One product -0.25%

06/06/2019

3.69%

BankSA

-0.20%

18/06/2019

3.59%

Bank of Melbourne

-0.20%

18/06/2019

3.54%

St George

-0.20%

18/06/2019

3.58%

RAMS

-0.20%

18/06/2019

3.79%

Suncorp

-0.20%

21/06/2019

3.49%

Homestar Finance

-0.25%

Immediately

3.24%

Greater Bank

-0.25%

11/06/2019

3.57%

Newcastle Permanent

-0.25%

17/06/2019

TBC

Note: Westpac Group is cutting the rate by 0.35% for investors paying interest only however every other variable product is 0.20%

Some of the lowest variable rates following yesterday’s announcement

LenderRate
Reduce Home Loans

3.19%

Homestar Finance

3.24%

Mortgage House

3.29%

Athena Home Loans

3.34%

 

 

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