What the RBA rate cut means for your pocket: RateCity

What the RBA rate cut means for your pocket: RateCity
What the RBA rate cut means for your pocket: RateCity

The big four banks have cut variable home loan rates following Tuesday's RBA announcement.

NAB, CBA and Westpac have all confirmed they will pass on the 25 basis point cut in full, while ANZ has chosen to withhold some of the cut to mitigate current wholesale funding pressures.

BoQ (Bank of Queensland), St George, and Ubank also followed suit, opening the door for cuts by other smaller lenders.

Sally Tindall, money editor at RateCity.com.au, said mortgage holders were carefully watching the banks’ moves.

“The fact that three of the four majors have announced they’ll pass on the full cut is a win for the majority of variable mortgage holders in Australia.

“ANZ’s decision to partially cut rates for residential customers is disappointing but not surprising. Increased global volatility has put the squeeze on their wholesale funding costs.

“It’s an industry-wide concern so there’s every chance other lenders will follow suit.

“If that happens, then it’s up to you to decide whether you want to stay with them.

“Regardless of whether your bank cuts rates or not, it’s also worth seeing what other lenders are offering, because ultimately the lower the comparison rate, the more money you’ll have left in your pocket.

“There are plenty of lenders already offering rates below 4 percent for owner-occupiers, so if you’re on a rate above 4.5 percent, the chances are you’ll still be behind, even if you do get a cut.”

To see a live list of lenders who have cut rates click here.

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What the RBA rate cut means for your pocket: RateCity

 

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What the RBA rate cut means for your pocket: RateCity

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Interest Rates

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