Which Bank Did What August 2016

By Matthew Kenworthy | News

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 Changes

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.

Additional Details

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 Bank

Adelaide Banks interest rate changes apply to all existing variable rate home loans. They do not apply to Lines of Credit.

ING Direct

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 Home Loans

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

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

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

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%.

Summary

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.

About the Author

Matthew Kenworthy is a specialist in all aspects of Residential & Commercial Finance. He can assist all borrowers from First Home Buyers to Property Investors with Large Portfolios.