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News.com.au

Major banks upstaged in rate response as 110 lenders under the microscope

Big Four banks have been upstaged, with two lenders passing on the RBA's August rate cut by a full 25 basis points within minutes. Athena and Macquarie were the first to announce, bringing their new best variables down to 5.64 per cent and 5.44 per cent respectively. They were quickly followed by Australian Unity Bank, who will have a new best variable of 5.34 per cent and RACQ Bank, who will lower to 5.29 per cent. The news came after 18 banks recently passed on out of cycle rate cuts to their fixed rate products. Those included Bank of Qld (BOQ), Greater Bank, The Mutual Bank, Easy Street Fin Services, Regional Australia Bank, BankVic, Pacific Mortgage Group, Hume Group, Macquarie Group, Police Bank, GMCU, Australian Mutual Bank, Community First Bank, Queensland Country Bank, ME Bank, Police Credit Union, Summerland Bank and Bank of China. Many more banks were expected to follow Athena and Macquarie in cutting their variable rates in quick succession with NAB, ANZ, CBA and Westpac, all having passed on the first two rate cuts of the year within a half-hour of the official announcement by RBA Governor Michelle Bullock. Banks have been generous in passing on cuts in full since the RBA first moved in February this year, but we are about to find out whether that will continue as we wait for all 110 lenders being monitored by Finder to notify their customers of their own rate decisions. The goodwill to borrowers may run out soon according to Finder's head of consumer research Graham Cooke. 'While it was encouraging to see most lenders pass on the full cut during the past two rate moves – a rare sight historically – a third full pass-through would be unlikely,' Cooke said. 'For borrowers, another cut offers meaningful relief. The average homeowner could save around $100 per month on their mortgage, on top of the $200 already saved from earlier cuts. This financial breathing room is likely to lift consumer sentiment and support renewed interest in the housing market, with Finder research showing that 60 per cent of recent buyers were influenced by falling rates. However, it's a different story for savers and retirees, who face even lower returns, and for renters, who continue to be left behind. 'Looking ahead, one more cut is expected this year – likely in November – bringing the total reduction to a full percentage point. The RBA has done its part. Now the banks need to do theirs.' The decision to cut rates by 25 basis points for the third time this year to now sit at 3.60 per cent has experts predicting positive flow-on effects to property values. 'While affordability remains severely constrained, the underlying market pressure of persistent housing undersupply relative to population growth remain in place,' said REA Group senior economist Eleanor Creagh. 'We expect home prices to continue rising in the months ahead, albeit at a more moderate pace than seen in previous easing cycles. 'With interest rates moving lower this year, momentum in the housing market has strengthened, marking a turnaround from the slower conditions observed in late 2024. Renewed buyer sentiment, supported by earlier rate cuts and the prospect of further reductions is underpinning this recovery.' A number of lenders have recently lowered their fixed rate offerings, but Mortgage Choice CEO Anthony Waldron said the vast majority of borrowers were looking for a variable rate product. 'Mortgage Choice home loan submission data reveals that the current interest rate environment has seen fixed rates stay firmly out of fashion, with a staggering 98 per cent of submissions in July being for variable rate home loan products. And nearly a third of submissions (31 per cent) in July were from borrowers looking to refinance,' Waldron said. 'The latest cash rate cut should boost the borrowing capacity of buyers hoping to enter the market this spring. Buyers hoping to succeed in a hot market should get expert advice early on. The latest Mortgage Choice Home Loan Report (revealed) more than 50 per cent of borrowers wish they'd done more homework when choosing their first home loan.' See the full list of lenders who have passed on the rate cut to their variable rate loans here (Assuming owner occupier loan, LVR 80 per cent, variable rate) Banks who have cut, new best rate (%), effective date Athena: 5.64 Australian Unity: 5.39 Macquarie Bank: 5.44 RACQ Bank: 5.29 Shame list: Banks yet to pass on cut ANZ: 5.75- 30 May CommBank: 5.64- 30 May NAB: 5.94- Westpac: 5.69- 3 June Adelaide Bank: 5.79- 6 June AMP: 5.64- 2 June Arab Bank Australia: 5.6- 3 June Aussie: 5.64- 6 June Australian Military Bank: 6.64- 3 June Australian Mutual Bank: 5.49- 1 June AusWide Bank: 5.69- 5 June Bank Australia: 5.64- 2 June Bank First: 5.59- 29 May Bank of China: 5.43- 3 June Bank of Melbourne: 5.89- 3 June Bank of Sydney: 5.54- 3 June Bank of us: 5.69- 11 June Bank Orange: 5.64- 2 June BankSA: 5.89- 3 Jun BankVic: 5.6- 3 June BankWAW: 5.49- 3 June Bankwest: 5.84- 30 May BCU Bank: 5.54- 10 June Bendigo Bank: 5.64- 6 June Beyond Bank: 5.79- 3 June Bluestone: 6.69- 11 June BOQ: 5.63- 6 June Border Bank: 5.34- 27 May Broken Hill Bank: 6.39- 4 June Cairns Bank: 5.79- 4 June Central Murray Credit Union: 5.74- 2 June Central West Credit Union: 6.49- 29 May Coastline Credit Union: 6.74- 29 May Community First Bank: 5.49- 11 June Credit Union SA: 5.79- 4 June Defence Bank: 6.09- 28 May Dnister: 5.79- 3 June Easy Street: 5.59- 4 June Family First Bank: 5.65- 16 June Fire Service Credit Union: 5.59- 1 June Firefighters Mutual Bank: 5.59- 1 June Firstmac: 5.78- 3 June First Option Bank: 5.69- 2 June Freedom Lend: 5.39- 16 June G & C Mutual Bank: 5.49- 1 June Gateway Bank: 6.04- 27 May Geelong Bank: 5.99- 30 May Goulburn Murray Credit Union: 5.69- 3 June Greater Bank: 5.49- 30 May Great Southern Bank: 5.74- 3 June Heritage Bank: 5.59- 30 May Homeloans: 5.99- 11 June HomeStar Finance: 5.59- 16 June Horizon Bank: 5.54- 1 June HSBC: 5.59- 2 June Hume Bank: 5.59- 2 June Illawarra Credit Union: 5.49- 4 June IMB: 5.54- 30 May ING: 5.64- 3 June Laboratories Credit Union: 5.85 La Trobe: 5.89- 22 May Liberty Financial: 5.99- 3 June 5.54- 3 June ME: 5.63- 7 June Mortgage House: 5.44- 6 June MOVE Bank: 5.54- 1 June MyState Bank: 5.69- 5 June Newcastle Permanent: 5.49- 30 May NICU: 5.49- 1 June NRMA Insurance Home Loan: 5.53- 6 June P & N Bank: 5.69- 10 June Pacific Mortgage Group: 5.39- 2 June People's Choice Credit Union: 5.49- 30 May Pepper Money: 6.59- 5 June Police Bank: 5.34- 27 May Police Credit Union: 4.99- 1 June Qantas Money: 5.68- 6 June QBank: 5.59- 6 June Qudos Bank: 5.44- 29 May Queensland Country Bank: 5.49- 4 June Reduce: 5.59 Regional Australia Bank: 5.59- 4 June resi: 6.18- 20 May RESIMAC Financial Services: 5.99- 11 June Southern Cross Credit Union: 5.73- 1 June South West Slopes Bank: 6.1- 3 June St. George: 5.89- 3 June Sucasa: 5.89- 16 June Summerland Bank: 5.59- 3 June Suncorp: 5.65- 30 May Teachers Mutual Bank: 5.59- 1 June The Capricornian: 5.39- 6 June The Mac: 5.42- 4 Jun The Mutual Bank: 5.49- TBC Tiimely Home: 5.54- 6 June Transport Mutual Credit Union: 5.39- 2 June Ubank: 5.69- 29 May UniBank: 5.59- 1 June Unity Bank: 5.59- 1 June Unloan: 5.49- 20 May Up Home Loan: 5.45- 1 June Virgin Money: 5.54- 6 June Warwick Credit Union: 5.89- 4 June Well Money: 5.69- 6 June Yard: 5.64- 6 June