Last week the RBA announced they were dropping interest rates by 0.25%.
Ultimately it’s up to each lender how much of the rate cut (if any) they pass on to borrowers. We thought we’d make it easy for you to find out who’s been ‘naughty or nice’ by summarising the changes below.
|Lender||Rate Change||Date Announced||Effective Date|
|Adelaide Bank||-0.10%||9 August 2016||29 August 2016|
|AMP||-0.10%||8 August 2016||22 August 2016|
|ANZ||-0.12%||2 August 2016||12 August 2016|
|Auswide Bank||-0.10%||9 August 2016||26 August 2016|
|Bankwest||-0.10%||3 August 2016||23 August 2016|
|Citibank||-0.15%||17 August 2016||23 August 2016|
|Commonwealth Bank||-0.13%||2 August 2016||19 August 2016|
|Connective Essentials||-0.10%||5 August 2016||19 August 2016|
|Connective Smart Options||-0.10%||5 August 2016||26 August 2016|
|Firstmac||-0.13%||13 August 2016||20 August 2016|
|Gateway Credit Union||-0.13%||9 August 2016||18 August 2016|
|Heritage Bank||-0.10%||9 August 2016||24 August 2016|
|ING Direct||-0.12%||5 August 2016||15 August 2016|
|Keystart Home Loans||-0.12%||12 August 2016||19 August 2016|
|Macquarie Bank||-0.10%||5 August 2016||26 August 2016|
|ME Bank||-0.10%||4 August 2016||23 August 2016|
|NAB Broker||-0.10%||2 August 2016||19 August 2016|
|P&N Bank||-0.25%||4 August 2016||26 August 2016|
|St George Bank||-0.14%||2 August 2016||23 August 2016|
|Suncorp Bank||-0.10%||3 August 2016||24 August 2016|
|Teachers Mutual Bank||-0.12%||15 August 2016||16 August 2016|
|The Rock||-0.10%||8 August 2016||30 August 2016|
|Westpac||-0.14%||2 August 2016||23 August 2016|
Information Updated 17 August 2016
The information in the table above is correct to the best of our knowledge however should not be relied upon when deciding on the appropriate home loan product for you. If the information is important to your decision we recommend clarifying the changes with your bank or broker.
Most lenders make the change to their Standard Variable Rate (SVR) which their other home loan products are based off of. We haven’t included the SVR for each lender in the table as it can often be misleading. Almost all banks offer significant discounts off their SVR and comparing on this basis can be fraught with danger. In many instances the SVR is referred to as the reference rate.
For some lenders, the changes can’t fully be summarised in table form. When there are multiple changes we’ve highlighted the Owner Occupied, Principal & Interest changes above. We’ve given a little more background information on their rate changes below.
Adelaide Banks interest rate changes apply to all existing variable rate home loans. They do not apply to Lines of Credit.
ING Direct have decreased their rate by -0.12% on their Orange Advantage product. All other variable rate home loan products will reduce by -0.10%.
Keystart adjust their variable rate home loan by adopting the average of the standard variable interest rate movements of the major banks.
P&N Bank decreased the majority of their variable rate loan products by -0.25%. However, their ‘& Home Loan’ was changed by -0.26%.
St George have announced they’re dropping the reference rate for Principal & Interest repayments by -0.14%. For Interest Only repayments they’ve reduced rates by -0.10%.
Westpac have announced they’re dropping the reference rate for Principal & Interest repayments by -0.14%. For Interest Only repayments they’ve reduced rates by -0.10%.
If you’re unhappy with how much of the rate cut your bank has passed on consider refinancing. We’d be happy to help with our obligation free mortgage broker service.