The recent interest rate drop from the RBA came as surprise to many experts. Since then, all major banks have announced that they are passing on the rate cut either in part or in full.
The majority of the banks are dropping rates around 0.19% to 0.25%. With ANZ having the lowest rate drop of all the majors with 0.19%, and ME Bank dropping the least – a tiny 0.05%.
While a drop of 0.25% may not seem like a huge amount, it can make a sizeable impact on the amount of interest you pay in the long run. On a $300,000 loan over 20 years you would pay an extra $13,000 in interest at 4.5% versus 4.25%.
To be kept in the loop for future home loan rate changes on your own loan and any RBA rate decision movements, we’ve introduced Pocketbook Home Loan Insights. You will get alerted when the interest rate on your home loan changes and see how much it has changed and what that means for you.
Similarly, banks have also been lowering introductory rates for new loans. From around 4% a month ago to now well below 4%. The standouts in market appear to be in the 3.6% to 3.9% range:
- Loans.com.au – 3.63%
- UBank – 3.74%
Find out when your bank will drop your rate here. Track future rate changes with Home Loan Insights here.
|Bank||Date of cut||Size of cut|
|Bank of Melbourne||23 May||0.25%|
|Bank of Queensland||18 May||0.25%|
|Bendigo Bank||30 May||0.20%|
|Commonwealth Bank||20 May||0.25%|
|ING Direct||20 May||0.25%|
|ME Bank||16 May||0.05%|
|St George||23 May||0.25%|