Which Australian lenders are passing on the rate cut fastest?
While some are passing the cut onto customers straight away, others are dragging their feet on implementing, or even responding to, the downshift.
Even the big four banks took their sweet time, with almost an hour passing before the first broke ranks and announced it would pass on the cut to its variable rate home loan customers in the wake of RBA's decision.
The RBA's surprise hold in July appeared to have cooled institutions' pace, with announcements coming in slower compared to the rapid post-cut reactions in February and May.
See how the big four banks reacted to the RBA decision
However, it wasn't all bad.
Some lenders were quick on the draw, announcing cuts and implementing them the day of, while others passed on rate relief within the week.
CBA led the four majors in responding to the RBA's move
The Commonwealth Bank of Australia (CBA) was the first of the big four banks to confirm it would pass on the full 25 basis point cash rate cut to its home loan customers.
CBA currently holds 24.6% of the nation’s home loan market,
according to its latest annual report.
Unlike in previous post-RBA announcements, it took almost an hour after the RBA Board revealed its unanimous decision before CBA responded.
That's despite the bank earlier declaring the cut was close to a done deal.
It seems the big four were waiting for one another to pull the trigger, and CBA choose to get it over with.
Borrowers won't see changes immediately, though. CBA and ANZ will pass on the cut 10 days after the RBA decision, NAB will take 13 days, and Westpac will take two weeks.
Even then, most big four bank customers will need to request a repayment adjustment via their bank's app, website, or phone lines if they wish, as only Westpac will adjust it automatically.
Which lenders fired the first shot?
While the big banks languished, digital lender Athena set the ball rolling, announcing that its new and existing customers will see variable rates cut by 0.25%, effective immediately.
See the full list of lenders passing on the cash rate cut
If you're a customer of the non-bank lender or you follow our RBA coverage, you'll know Athena has a history of passing on cuts within minutes of their announcement.
The plucky digital lender claimed "it only took us 32 seconds" this time.
If you think about it, it makes sense a lender named for the goddess of strategic warfare launched the first strike.
Another contender for 'quickest to deliver' was CBA-owned Unloan.
The fully digital lender also passed on the cut immediately to all customers, bringing its lowest advertised owner-occupier variable rate to 5.24% p.a. (comparison rate 5.15% p.a.) for select borrowers with loan-to-value ratios (LVRs) of up to 80% – that's currently among the lowest rates in the market.
Macquarie moves swiftly
Major challenger Macquarie Bank was the biggest lender to begin passing on the savings to home loan customers, implementing the 0.25% reduction from 15 August.
The cut lowered the bank's headline rate for owner-occupier variable home loans to 5.39% p.a. (comparison rate: 5.41% p.a.).
According to Macquarie, customers will be notified about their new rate on or after the effective date.
Rounding up the lenders adjusting rates this week was Hume Bank, which posted a 25 bps cut on 14 August, and Horizon Bank, which cut by 25 bps on 15 August and unveiled a 4.99% p.a. (comparison rate 4.99% p.a.) rate for eligible first home buyers.
Reduce Home Loans also cut rates this week, starting with its Ezy SMSF Purchase and Refinance products, taking the current market-leading rate for SMSF loans to a lower level – 6.19% p.a. (comparison rate 6.29% p.a.).
Better late than never?
While many lenders will implement the cut next week or the week after, customers of some member-owned and non-bank lenders will have to wait for a bit longer before seeing repayments reduced.
Digital lender Homestar Finance and Queensland-based QBank are passing on the 25 basis point cut to customers, but not until 1 September.
BCU Bank and P&N Bank have got them beat, posting an effective date three weeks after the RBA announcement, 2 September to be exact.
Better late than never, perhaps.
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