Major banks pass on interest rate cut - but there's a catch as some delay RBA relief

Yahoo

3 days ago

Commonwealth Bank (CBA) will be the first of the Big Four banks to pass on the Reserve Bank of Australia's (RBA) decision to cut interest rates. The cash rate was lowered from 3.85 per cent to 3.60 per cent following the central bank's two-day meeting.
CBA revealed it would give customers on variable rates a 0.25 per cent reduction in their interest repayments, which will kick in on August 22. Competitor Westpac will wait until the following Tuesday to hand on the reduction to its borrowers, on August 26.
In a move that may frustrate customers, Westpac also noted it would decrease interest rates for deposit savers faster than dishing out relief.
Westpac Life total variable rate with bonus interest will decrease by 0.25 per cent to 4.25 per cent effective August 22
Westpac eSaver total variable rate with a five-month introductory rate will decrease by 0.25 per cent to 4.25 per cent for new customers applying online, effective August 22.Macquarie Bank will cut quicker than both CBA and Westpac.
Customers on a variable rate will enjoy a 0.25 per cent reduction in their interest repayments from August 15.
This will bring the bank's new best variable rate to 5.44 per cent.
Macquarie aren't the fastest though.
RELATED
Aussie reveals $12,000 mortgage 'tax' costing borrowers ahead of crucial RBA decision
Centrelink warning for downsizing Baby Boomers over 'special' retirement rule
Kiwi couple move to Australia after 'overwhelming' $20,000 cost to start family
Smaller lender Athena Home Loans have boasted they will reduce rates "faster than a seagull on a chippy" — applying the reduction from today.
"No waiting. No begging. No 'we'll think about it'. Just instant action - the Athena way. Because an RBA cut should mean money back in your pocket immediately," Athena Home Loans said.
How much will I save on my mortgage repayments with a cut?
Angus Sullivan, CBA's Retail Group Executive, said the third cut of the year will give borrowers some "breathing room back in their budgets".
'We can see people are responding to lower interest rates in different ways - some are covering everyday costs a little more comfortably, others are getting ahead on their home loans," he said.
With the February and May cuts, a borrower with a loan of $500,000 will save $240 a month, while those with a $1,000,000 loan would save $481.
If you bank with CBA you will need to contact the lender directly for the reduction to be applied to your mortgage repayment.
Carolyn McCann, Westpac chief executive - consumer, said along with the previous reductions this year, customers could be saving an extra $266 per month or $3,192 per year based on a $500,000 home loan with principal and interest repayments.
'We're seeing customers use the extra breathing room in a variety of ways – from paying down their loans faster to building up savings buffers or covering everyday expenses,' McCann said.
Unlike CBA, Westpac customers may have their mortgage repayments automatically reduced.
"Westpac customers paying principal and interest will be notified directly about what this will mean for their repayments and how they can make changes, which includes via the app, the website or by contacting the bank," the bank said.
At the time of writing, ANZ and NAB haven't revealed if they're passing on the rate cut.
Which lenders have cut interest rates so far after RBA August meeting?
Commonwealth Bank: 0.25 per cent cut for customers from August 22
Westpac: 0.25 per cent cut for customers from August 26
Macquarie Bank: 0.25 per cent cut for customers from August 15
Athena Home Loans: 0.25 per cent cut for customers from August 12
RACQ Bank: 0.25 per cent cut for customers from August 26
Unloan: 0.25 per cent cut for customers from August 12
Canstar monitors dozens of Australian lenders regarding their interest rate decisions and when they will affect customers, which you can find here.Errore nel recupero dei dati
Effettua l'accesso per consultare il tuo portafoglio
Errore nel recupero dei dati