Macarthur Credit Union beats RBA with 26 bps rate cut: RateCity guide of 39 lender rate cuts

The tiny Macarthur Credit Union has become only the third lender to pass on more than the RBA’s 25 basis point May cash rate cut to borrowers.

The credit union, which dates back to 1971 when it formed to service coal miners and truck drivers as the Clutha Employees Credit Union Ltd, cut its standard variable rate by 26 basis points to offer a new 5.99% standard variable rate.

As the Macarthur Credit Union, it services 17,000 members in Camden, Campbelltown and Wollondilly in the Macarthur region of NSW, south west of Sydney.

The other lenders to pass on more than the RBA's May cash rate reduction to date are ANZ (27 basis points) and the Greater Building Society (30 basis points).

“It’s great to see most lenders passing on the Reserve Bank’s 0.25 percentage points and even better to see some lenders going further. Macarthur Credit Union is the third lender so far to drop its standard variable rate by more than the Reserve Bank’s 0.25 percentage point cash rate drop, even if it’s only by an extra 0.01 percentage point,” said RateCity.com.au CEO Alex Parsons.

“We’re hoping that this latest round of rate cuts by the Reserve Bank will spark greater competition between lenders. The game has changed for Australia’s lending market and now is the time for borrowers to take advantage of what lenders are offering.

RateCity.com.au has counted 39 lenders announcing rate cuts since last week’s decision by the RBA to cut the cash rate by 25 basis points to a 53-year-low of 2.75%:

Company

Standard variable

rate movement

New standard

variable rate

Greater Building Society

-0.30%

5.75%

ANZ

-0.27%

6.13%

Macarthur Credit Union

-0.26%

5.99%

AMP Bank

-0.25%

6.25%

Aussie Home Loans

-0.25%

5.24%

Bank MECU

-0.25%

5.74%

Bank of Melbourne

-0.25%

6.15%

Bank SA

-0.25%

6.22%

Bankwest

-0.25%

6.14%

Bendigo Bank

-0.25%

6.26%

BMC Mortgage

-0.25%

5.28%

BOQ

-0.25%

6.26%

Coastline Credit Union

-0.25%

5.34%

Commonwealth Bank

-0.25%

6.15%

Heritage Bank

-0.25%

5.89%

IMB

-0.25%

5.91%

ING DIRECT

-0.25%

5.41%

Intech Credit Union

-0.25%

5.93%

Macquarie Bank

-0.25%

6.24%

MyRate

-0.25%

5.42%

nab

-0.25%

6.13%

Newcastle Permanent

-0.25%

5.80%

P&N Bank

-0.25%

5.95%

Pacific Mortgage Group

-0.25%

5.02%

People's Choice Credit Union

-0.25%

6.12%

Police Credit

-0.25%

5.74%

Queenslanders CU

-0.25%

5.25%

RAMS Home Loans

-0.25%

6.10%

RESI Mortgage Corp

-0.25%

5.31%

SGE Credit Union

-0.25%

5.82%

St George Bank

-0.25%

6.24%

Summerland CU

-0.25%

5.54%

Suncorp Bank

-0.25%

6.24%

UBank

-0.25%

4.87%

Westpac

-0.25%

6.26%

Yellow Brick Road

-0.25%

6.15%

loans.com.au

-0.24%

4.75%

Community First Credit Union

-0.22%

6.12%

Police Bank

-0.20%

5.84%

Source: RateCity.com.au, ranked by biggest cuts then alphabetically, effective dates vary between lenders

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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