The RBA surprised with a May ‘budget day’ rate cut, so what are banks and lenders doing about it?
Australia’s official cash rate is now 1.75%, a new historic low.
CEO of Aussie, James Symond, said many economists didn’t expect the rate cut, despite inflation falling by 0.2% in the March Quarter.
“Despite inflation being below target, economic growth remains consistent at 3%, unemployment remains below 6% and business confidence and conditions remain at a comfortable level, so this rate cut did take many by surprise,” said Mr Symond.
“All eyes will now be on the banks as we wait to see if and how much of the rate cut they pass on to Australian consumers.”
To help you keep across what banks and other lenders decide, we’ll keep you updated right here as to who on our panel of 20 lenders* is passing on the savings to you and when.
May 2016 RBA Rate Cut – which lenders are passing on the savings
|Lender||Rate Type||Rate change||Effective Date|
|Adelaide||Variable||0.17%||30 May, 2016|
|AMP||Variable||0.20%||20 May, 2016|
|ANZ||Variable||0.19%||13 May, 2016|
|Aussie Select||Variable||0.19%||25 May, 2016|
|Aussie Optimizer*||Variable owner occupied
|17 May, 2016|
|Bank of Melbourne||Variable||0.25%||23 May, 2016|
|Bank SA||Variable||0.25%||23 May, 2016|
|BankWest||Variable||0.20%||20 May, 2016|
|CommBank||Variable||0.25%||20 May, 2016|
|Citibank||Variable||0.21%||23 May, 2016|
|ING Direct||Variable||0.25%||20 May, 2016|
|Liberty||Variable||Various – see lender||30 May, 2016|
|Macquarie||Variable Owner Occupied
|9 May, 2016|
|ME||Variable||0.05%||16 May, 2016|
|NAB||Variable||0.25%||16 May, 2016|
|MyState||Variable||0.23%||30 May, 2016|
|P&N Bank||Variable (for & Home Loan only)||0.14%||3 May, 2016|
|Pepper||Variable||0.25%*||16 May, 2016|
|St George||Variable||0.25%||23 May, 2016|
|Suncorp||Variable owner occupied
|25 May, 2016|
|Westpac||Variable||0.25%||23 May, 2016|
Those under review will be updated once a decision is communicated.
*Some exceptions apply.
Regardless of whether your lender passes on the full cut, you should be reviewing your home loan regularly to ensure that not only your home loan interest rate remains competitive, but also that your home loan is meeting your needs.
A mortgage broker can quickly and easily do a home loan health check at no cost to you, so give Aussie a call on 1300 44 55 66 or book a free appointment.
Do you think there will be another rate cut in 2016? Tell us your thoughts in the comments below.
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*Please note, as of October 2016, Aussie has 21 lenders on its panel.