What the Big 4 cuts mean for mortgage holders: RateCity
Although the RBA has cut the cash rate by 0.5 per cent over the last two months, the big four haven't passed on all of this cut to their variable rate home loan customers.
All four banks have decided to keep a portion of the cuts back ranging from Westpac's 0.10 per cent, to the 0.06 per cent from NAB and CBA.
Finder compiled some key points of interest following the interest rate announcement.
The new standard variable rate for the Big Four is 4.94%, with the new average lowest variable rate for the Big Four being 3.42%.
NAB and CBA have the lowest variable rate of the Big Four.
What the big banks are passing on to their variable rate home loan customers:
The typical Australian is with a big four bank on a discounted variable rate, according to RateCity.com.au who has calculated what the last two months of rate cuts means for them, based on a $400K loan.
As a result of the latest round of announcements, CBA and NAB are set to have the lowest ongoing variable rates from the big four banks at 3.35 per cent.
ANZ and NAB are passing on this round of rate cuts within the first two weeks while CBA is once more taking three weeks to pass the latest rate cut on to home loan customers.
- CBA rates effective 23 July 2019
- Westpac rates effective 16 July 2019
- NAB rates effective 12 July 2019
- ANZ rates effective 12 July 2019
Some of the lowest ongoing variable rates following Tuesday’s cut:
- Reduce home loans: 2.89%
- Homestar Finance: 2.99%
- Athena home loans: 3.09%
RateCity.com.au research director Sally Tindall said, “The majority of variable rate home owners are set to save over $100 a month as a result of these two cash rate cuts."
“Any cut to the cash rate is always a double-edge sword as savers brace for another round of deposit rate cuts."
“RateCity.com.au’s average savings rate is 1.51 per cent but this is set to drop below inflation in coming days as this most recent cash rate cut gets passed on,” she concluded.