Which Bank Did What May 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 -0.17% 10 May 2016 30 May 2016
AMP -0.20% 6 May 2016 23 May 2016
ANZ -0.19% 4 May 2016 13 May 2016
Auswide Bank -0.20% 6 May 2016 25 May 2016
Bankwest -0.20% 5 May 2016 20 May 2016
Citibank -0.21% 23 May 2016
Commonwealth Bank -0.25% 3 May 2016 20 May 2016
Connective Essentials -0.25% 4 May 2016 16 May 2016
Connective Smart Options -0.25% 9 May 2016 25 May 2016
Firstmac -0.25% 9 May 2016 23 May 2016
Gateway Credit Union -0.25% 24 May 2016
Heritage Bank -0.20% 6 May 2016 23 May 2016
ING Direct -0.25% 4 May 2016 20 May 2016
Keystart Home Loans -0.24% 10 May 2016 13 May 2016
Macquarie Bank -0.25% 9 May 2016 25 May 2016
ME Bank -0.05% 10 May 2016 16 May 2016
NAB Broker -0.25% 3 May 2016 16 May 2016
P&N Bank -0.14% 5 May 2016 5 May 2016
St George Bank -0.25% 4 May 2016 23 May 2016
Suncorp Bank -0.20% 5 May 2016 25 May 2016
Teachers Mutual Bank -0.25% 11 May 2016 12 May 2016
The Rock -0.23% 13 May 2016 30 May 2016
Westpac -0.25% 3 May 2016 23 May 2016

Information Updated 13 May 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.

For some lenders, the changes can’t fully be summarised in table form. We’ve given a little more background information on their rate changes below.

Auswide Bank

Auswide Bank will drop their Owner Occupied Standard Variable Rate by -0.20%, their Investment Standard Variable Rate by -0.15% and Line of Credit Products by -0.10%.

Gateway Credit Union

Gateway will drop their Owner Occupied Standard Variable Rate by -0.25%. The Investment Standard Variable Rate is decreasing by -0.20%.

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 had announced on 22 April 2016 they were increasing their variable rate loan products by +0.14%. In lieu of the Reserve Bank announcement they elected not to increase their rates.

Suncorp

Suncorp announced they were dropping their Owner Occupied Standard Variable rate by -0.20%. Their Investment Standard Variable Rate decreased by 0.15%. No changes were made to their line of credit rates.

Teachers Mutual Bank

TMB have announced rate changes ranging from -0.10% to -0.25% depending on the loan product and borrowings. Their Standard Variable Rate Home Loan (Teachers Flexi Choice Home Loan) has decreased by 0.25%.

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.