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In an unprecedented move, the Reserve Bank of Australia dropped the official cash rate by another 0.25%. Now, for the first time in its history, the cash rate sits at a record low of 0.75%.
October’s 0.25% drop, when combined with June and July’s cuts, could save the average Australian borrower an incremental $1,788* in interest in the next 12 months alone.
Since the initial cash rate cut in June, we’ve helped customers reduce their interest rates by an average of between 0.90% and 1.10%. That’s an extra 0.60%** on top of the 0.25-0.50% passed on by lenders.
How are they reducing their rate by so much? We hate seeing borrowers waste money when there are savings to be made. Our goal is to always find Aussies the best deal possible, so not only have we helped customers benefit from rate cuts, but nabbed them a better home loan deal too.
Not only could you could benefit from the lowest interest rates available in decades but there are also a number of cashback offers available of up to $2,000. There really has never been a better time to refinance!
While some of Australia's banks and lenders have already passed on the cut and reduced their home loan interest rates, many others have only passed on a portion or none at all.
If your lender does not pass on the rate cut, it's worth reviewing your home loan options. Chat to one of our friendly Home Loan Specialists today.
Below we've listed all of the banks and lenders who have already passed on the 0.25% rate cut to their home loan customers, and the lenders still waiting. It's worth noting that most of those who have moved are not making those rates available for a few weeks.
Last updated: 10am, 8th October 2019
|Bank||Update||Effective date||New Lowest Rate Advertised|
|AMP Bank||15 basis points||14 October|
|ANZ Bank||14-25 basis points||11 October|
|Athena||25 bps||1 October||2.84% p.a. (2.80% p.a. comp rate*) for OO P&I with up to 80% LVR|
|Auswide Bank||25 bps||3 October||3.24% p.a. (3.26%pa comp rate*) for OO P&I borrowers with up to 80% LVR|
|Bank of Melbourne||15 basis points||16 October|
|Bank of Sydney|
|BankSA||15 basis points||16 October|
|Bankwest||13-25 basis points||16 October|
|Bendigo Bank||15 basis points||15 October|
|BOQ||10 basis points||25 October|
|Commonwealth Bank||13-25 basis points (0.13-0.25% points)||22 October|
|Community First Credit Union|
|Credit Union SA|
|FreedomLend||25 basis points||2 October||2.79% p.a. (2.79% p.a. comp rate) for OO P&I borrowers with up to 80% LVR|
|G&C Mutual Bank|
|Heritage Bank||15 basis points||15 October|
|Homestar Finance||25 bps||28 October 2019 for existing customers (27 days after RBA decision), 01 October 2019 for new customers (0 days after RBA decision)||2.74% p.a. (2.77% p.a. comp rate)|
|HSBC||15 basis points||21 October||3.02%|
|ING||15 basis points||16 October||2.99%|
|Macquarie Bank||15 basis points||17 October|
|MyState||15 basis points||14 October||3.23%|
|NAB||15-30 basis points (0.15%-0.30% points)||11 October|
|Newcastle Permanent||13 basis points||22 October||3.19%|
|People’s Choice CU|
|Pepper Money||Up to 24 basis points (0.24% points)||1 October||3.12% (3.32% comparison rate*) for OO P&I borrowers with up to 90% LVR|
|P&N Bank||16 basis points||15 October||3.47%|
|Qudos Bank||15 basis points||15 October||3.13 %|
|RACQ Bank||15 basis points||8 October||3.24%|
|RAMS||15 basis points||16 October|
|Reduce Home Loans||20 basis points (0.20% points)||1st October (new Customers)||2.69% (2.71% comp rate*) for OO P&I borrowers with up to 80% LVR|
|Regional Australia Bank|
|St. George Bank||15 basis points||16 October|
|Suncorp Bank||15 basis points||18 October|
|The Mutual Bank|
|Teachers Mutual Bank|
|Tic:Toc Home Loans|
|UBank||25 basis points (0.25% points)||29 October|
|Virgin Money||15-20 basis points||25 October|
|Westpac||15 basis points||16 October|
If you are planning to refinance or buy a property, it pays to be prepared. Make sure your home loan application details are up to date so you can be ready to go as lenders dropping their rates.
On the first Tuesday of every month (except in January), the Reserve Bank of Australia (RBA) sets the cash rate. They decide whether to raise it, lower it or leave it the same, depending on a number of factors, including the performance of the Australian dollar, the state of the housing market and inflation.
The last time the cash rate rose was in November 2010. Since then, the general trend has been for the rate to remain the same, decreasing only every so often. Prior to June 4 2019, The last decrease was in August 2016.
We're here to help. Get free expert advice at a time that suits you. Choose a time to chat with a Home Loan Specialist here.
*Repayment rate based on a $380,000, P&I loan over a 20-year term decreasing from 4.25% | 4.25% to 3.50% | 3.50%.
** On average Lendi refinancers get a rate around 60bps less than what they were paying and this, plus the 25 to 50 bps cuts passed on from the RBA decisions, has seen the average refinancer reduce their interest rate by between 90 and 110bps.
^ $2,299 figure is calculated by comparing customers' previous and new interest rates. This does not include customers consolidating debt or accessing equity, and does not account for changes to the overall lending amount or total loan term. This figure does not take into account fees and charges related to the transactions and ongoing changes to fees
The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.
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