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||-0.17%||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.
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 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 will drop their Owner Occupied Standard Variable Rate by -0.25%. The Investment Standard Variable Rate is decreasing by -0.20%.
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 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 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.
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%.
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.