Here is an update of lenders who have responded to the Reserve Bank’s decision to cut the official cash rate by 25 basis points to 1.75% on Tuesday 3rd May.
It’s disappointing to note that lenders are much slower to pass on rate cuts compared to hikes. A recent study by finder.com.au suggests the four major banks take an average of 6 days to pass on a hike, but 11 days on average to pass on a cut. That’s almost double the time!
In the process the Big 4 collectively pocket almost $4 million every day they hold back on passing the rate cut to their variable rate home loan customers.
Let’s see how the banks play it this time round. If you have any queries or would like to chat about your particular loan or situation, I would love to hear from you. If you are simply not happy with your current lender or interest rate they are charging you, then I invite you to have a read of all my previous blog posts on the topic of loan refinancing.
The following information will be updated as further announcements are made, so check back if your home lender is not shown below.
AMP 0.20% effective Monday 23 May
ANZ 0.19% effective Friday 13 May
Bank of Qld 0.25% effective Wednesday 18 May
Bankwest 0.20% effective 20 May
CBA 0.25% effective Friday 20 May
CUA 0.00% – 0.25%# effective Thursday 19 May
Heritage 0.20% effective Monday 23 May
ING Direct 0.25% effective Friday 20 May
NAB 0.25% effective Monday 16 May
Smartline Select 0.25% effective Monday 16 May
St George 0.25% effective Monday 23 May
Suncorp Owner Occupiers 0.20% effective Wednesday 25 May
Suncorp Investors 0.15% effective Wednesday 25 May
WBC 0.25% effective Monday 23 May
# product specific. Please contact me if you’d like more info.
If you’d like to know a little more about how the Reserve Bank changes affect your interest rate, check out my explainer here.
Jason Thomson is a Cairns based Mortgage Adviser and Finance Broker with clients all around Australia. 130+Client Reviews featured on his website proves that Jason is a trusted industry professional. Using his wealth of experience in financial services, he thrives on delivering superior service. Jason is very approachable and is always looking for new clients to help in the often confusing world of finance and property.