Mortgage rate cuts gather pace as RBA move filters through
More banks and lenders are jumping on board after the RBA's August rate cut, following early movers last week. NAB, Westpac, and Bendigo Bank have all trimmed home loan rates, with some cuts reaching up to 0.41%.
The wave of cuts suggests growing confidence that the RBA's easing cycle may continue. While some lenders are still holding off, competition in the mortgage market is intensifying, and rate movement is likely to continue in the weeks ahead.
Read more: Full list of home loan rate cut announcements
NAB slashes key variable home loan rates
NAB has cut rates by 0.25 % p.a. across a wide range of home loan products, including both owner-occupier and investor loans.
The changes apply to mortgage options under NAB's Base Variable and Tailored Variable offerings, with the lowest new rate now at 5.69% p.a. (5.73% p.a. comparison rate*) for owner-occupiers, available with a loan-to-value ratio (LVR) of up to 95%.
Investor loans were also reduced, with minimum rates starting from 6.21% (6.25% p.a.*). The cuts cover loan-to-value ratios (LVRs) of up to 95%, and apply to loan amounts starting from $20,000.
Westpac trims interest rates on home loans
Westpac has reduced home loan rates by 25 basis points, with the most competitive new rates starting from 5.34% p.a. (5.35% p.a.*) for the Flexi First Refinance Option, one of the bank's more popular low-fee products.
Investor loans under the same product are available from 5.59% p.a. (5.60% p.a.*), providing competitive options for property investors.
Westpac also adjusted rates across its flagship Premier Advantage and Rocket Repay loan packages, which are widely used by borrowers bundling home loans with other banking products.
With this move, Westpac becomes the last of the big four to blink, finally passing on the rate cut on Tuesday, 26 August. Earlier last week, both CBA and ANZ had already reduced their home loan rates, signalling increased competition among the major lenders.
Bendigo Bank cuts deep with mortgage rate reductions
Bendigo Bank has slashed home loan rates by up to 0.41%, well above the RBA's 25 bps cut, across its owner-occupier and investor loans.
The largest cuts were applied to its Complete Home Loan Variable P&I offerings for higher LVR borrowers, with rates dropping by up to 0.41%, now starting from 5.44% (5.67% p.a.*).
Its lower-frills Express Variable products were also trimmed by 0.25%, bringing the owner-occupier rate down to 5.39% (5.52% p.a.*). Investment loans, both P&I and interest-only, saw reductions across all LVR tiers, with new rates starting from 5.54% (5.77% p.a.*).
The move makes Bendigo one of the most aggressive lenders responding to the RBA's August cut.
Other movers
- Great Southern Bank decreases home loan rates by up to 35 bps.
- ING has cut rates by 25 basis points across its Orange Advantage and Mortgage Simplifier home loans, including investment options.
- HSBC and Bank of us slash home loan rates by up to 0.30%.
- Summerland Bank reduces Standard Fixed and Investment Fixed rates by up to 0.20%.
- Other lenders to pass on the full 25 basis point RBA cut include:
- Bank of Queensland, Heritage Bank, The Mutual Bank, Greater Bank, G&C Mutual Bank, Adelaide Bank, Bank of Sydney, Beyond Bank, Bank of Melbourne, St. George Bank, BankSA, Timely, Aussie, IMB, Auswide Bank, People's Choice, Geelong Bank
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Rates have shifted - has your lender kept up? Discover competitive variable rate options for owner-occupiers following the RBA's latest move.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
