Before today's rate cut, some commentators warned borrowers not to expect the banks to pass on the rate cuts, but a handful of lenders have wasted no time in passing on the cut. 

For rolling updates of which banks have passed on the cut, stay tuned to our RBA rate cut page.

Thinking about refinancing to a low-rate, variable owner-occupier home loan? Below are a handful of low-rate loans on the market. 

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Online ExclusiveUp To $4K Cashback
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

86 400

Neobank 86 400 was the first to pass on the full 25 basis point cut.

The cut applies to new and existing owner-occupied and investment home loan customers, in effect from tomorrow (March 4). 

This brings 86 400's variable rate for owner-occupiers paying principal and interest down to 2.84% p.a. (comparison rate 3.12% p.a.) which amounts to $1,250 in savings based on an average new loan of $500,000. 

86 400 is currently the only neobank to offer home loans.

Robert Bell, CEO of 86 400 said the new bank is committed to putting customers first.

"After launching our home loan products late last year, this has been our first opportunity to address a rate cut. As an agile bank, we can make the obvious and simple decisions quicker to put money back in our customers’ pockets," he said.

"Passing on the full rate cut today underscores our commitment to helping Australians take control of their money. Whether that’s in saving for a home, simplifying and speeding up the mortgage process or paying their loan off faster through a better rate.”

Athena rate cut

Athena also wasted no time, immediately passing on the cut in full. The 25 basis point cut applies to new and existing customers on variable rate home loans who are owner-occupiers and investors. 

This brings Athena's rate down to 2.59% p.a. (2.55% p.a. comp rate*) for owner-occupier, principal and interest borrowers with up to 80% LVR.

Athena have been one of the only lenders to immediately pass on the full rate cut for the last four announcements.

"None of the 12 largest home loan lenders have done this," said Athena CEO Nathan Walsh.

"This is money that should be in the pockets of Aussie families."

According to Athena, a family with a typical home loan could save as much as $120,000 and shave five years off their mortgage if they kept their repayments unchanged as rates fell. 

Mr Walsh said Aussies should challenge their bank if they haven't received a cut.

"If they don't drop your rate in full, then drop your bank. The savings opportunity is too important to be short changed."

Westpac rate cut

Westpac was the first of the big four to pass on the rate cut in full, announcing the changes within four minutes.

This announcement came as a surprise to many banking analysts who had been expecting the big four to hold back some of the rate cut, as they had done previously. 

The cut applies to all variable rate home loans for investors and owner-occupiers, effective from 17 March.

  • Variable home loan (owner occupier) rate has been reduced by 0.25% p.a. to 4.58% p.a. for customers with principal and interest repayments.
  • Variable residential investment property loan rate reduced by 0.25% p.a. to 5.13% p.a. for customers with principal and interest repayments.
  • Variable home loan (owner occupier) rate reduced by 0.25% p.a. to 5.17% p.a. for customers with interest only repayments.
  • Variable residential investment property loan rate reduced by 0.25% p.a. to 5.39% p.a. for customers with interest only repayments.

Westpac chief economist Bill Evans said the cut was needed.

"With the virus impacting an economy that was already weak it was absolutely necessary to provide more support although the Reserve Bank does not recognise that risk in the Governor’s Statement," he said. 

Mr Evans said the bank expects another rate cut in April.

"It was been Westpac’s forecast that the RBA will act again in April for much the same reasons that we have seen today – helping to assist the Australian economy to deal with the shocks associated with the virus; falling into line with other central banks’ stimulatory policies, particularly to ensure that the Australian dollar remains competitive and working in conjunction with the Australian Government to deal with the issues," Mr Evans said. 

"It seems that the coronavirus has brought the Government and the Reserve Bank together to address the risks with complementary policies. That “partnership” is unlikely to end with this single move by the RBA."

CBA rate cut

Commonwealth Bank was the second of the big four banks to pass on the rate cut in full. The cut will apply to all variable rate home loans for new and existing customers with owner-occupier and investment loans. 

CBA's new rates are: 

  • Owner-occupied principal and interest standard variable rate home loans reduced by 0.25% (p.a.) to 4.55% p.a.
  • Investor principal and interest standard variable rate home loans reduced by 0.25% p.a. to 5.13% p.a.
  • Owner-occupied interest-only standard variable rate home loans reduced by 0.25% p.a. to 5.04% p.a.
  • Investor interest-only standard variable rate home loans reduced by 0.25% p.a. to 5.39% p.a.

Angus Sullivan, Group Executive Retail Banking Services said CBA's new rates are some of the lowest on record.

“In responding to this latest official interest rate cut we have examined the important role we play in supporting the Australian economy and the unique set of circumstances facing the country," he said. 

“Today’s announcement means our SVR for Owner Occupied customers, with Principal and Interest repayments, will be one of the lowest on record.”

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