Who cut interest rates following the RBA's March cut?
All 26 home loan lenders who cut their interest rates following the RBA's announcement yesterday have cut in full.
It was the first time since October the RBA cut the official cash rate, with RBA Governor Philip Lowe citing the economic effects of the coronavirus as a main driver.
The cash rate now sits at a historic low 0.5 per cent.
Westpac were the first to cut, minutes after the RBA's decision.
Commonwealth Bank followed, then NAB, and ANZ at the close of the day.
All big four banks now offers their lowest variable rate under three per cent.
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Source: RateCity.
RateCity calculate the March cut will save the average mortgage holder $56 per month or $675 a year.
This is based on an owner occupier paying principal and interest on a $400,000, 30-year mortgage.
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Note: the above calculations are based on a person with a $400K, 30-year loan on RateCity’s average variable rate of 3.73 per cent.
RateCity.com.au's research director Sally Tindall says the majority of variable rate homeowners are set to save over $50 a month as a result of the cut to the cash rate.
“This is money some families can put towards their bills but Australians with a bit of cash to spare may want to spend this cut in their local community.
“Any cut to the cash rate is always a double-edge sword as savers brace for another round of deposit rate cuts.
“While plenty of savers are facing the prospect of earning next to no interest on the back of this rate cut, it is still worth shopping around for a decent rate.
“When the dust settles, we expect the highest savings rate to sit at 2 per cent, which is at least a fraction higher than the current inflation rate,” she said.
Athena was the national first lender to announce they were passing on the cuts to customers after the RBA's announcement, followed by the big-four banks Westpac, CBA, NAB, and then ANZ.
ING, the nation's fifth biggest lender, today announced that it will make a 0.25% per annum cut for all new and existing customers with an ING variable rate home loan. The change will come into effect on 18 March 2020.
Freedom Lend, Homestar, Reduce Home Loans, RACQ Bank, 86 400, Auswide Bank, Defence Bank, The Mutual, St George, Bank SA, Bank of Melbourne, RAMS, Bank West Macquarie, Suncorp, Newcastle Permanent, Loans.com.au, First Mac, UBank, and ME Bank have all passed on the full rate cut.