Bluestone, RedZed, Bendigo Bank join interest rate cut party

Another bevy of non-major lenders has announced variable-rate interest rate cuts following the Reserve Bank of Australia (RBA)’s decision to move the cash rate down to 3.6% on Tuesday.

Bluestone Home Loans declared that it will pass on the 25-basis-point cut in full to new applicants – though the gifts didn’t stop there. The non-bank lender is also bringing back its 25th Anniversary Offer of an additional 0.25% discount on rates across all products for a limited time.

Bluestone has also beaten Macquarie Bank to the punch but reducing rates from this Wednesday – Macquarie was previously leading the pack with a Friday pass through date.

However, existing Bluestone customers are less fortunate – they will have to wait till 1 September to reap the benefits of the RBA's call.

“In a changing market, brokers need lenders who deliver both speed and value,” said Tony MacRae (pictured, left), chief commercial officer at Bluestone. “Passing on the full RBA cut and pairing it with our 25th Anniversary Offer gives brokers a powerful advantage, helping them deepen relationships, attract new clients, and offer borrowers more choice and flexibility.”

Low-doc specialist RedZed has opted to reduce variable rates on residential, commercial and SMSF loans by 0.25% from this Friday.

Announcing the plans on Wednesday, RedZed managing director Calvin Cordle (pictured, right) said: “These rate changes offer brokers and small businesses more opportunity to thrive. They also reflect RedZed’s commitment to supporting brokers and our self-employed customers, and ensuring they remain at the core of everything we do”.

Pepper Money became the first non-bank lender to announce rate reductions on Tuesday, although the high-profile lender will wait until 28 August to pass through the RBA’s decision in full.

Every Big Four bank – Commonwealth Bank, ANZ, Westpac, NAB – announced plans to pass through the 25-basis-point cut on Tuesday, though pass through dates vary.

Another regional bank joins the party

Among the regionals, Bendigo and Adelaide Bank today announced that it will wait until 27 August to pass through the quarter-percent rate cut.

“We know many of our lending customers welcomed the RBA’s decision to cut rates and we’re pleased to continue providing homeowners with rate relief by delivering a third interest rate cut in 2025,” said Bendigo’s chief customer officer for consumer banking Taso Corolis.

Bendigo joins the likes of AMP Bank, Bankwest and ING Australia, which all announced their intentions to reduce variable interest rates by 0.25% in the coming days and weeks.