Which bank is beating Commonwealth Bank, ANZ to the punch?
Macquarie Bank will be the first of the major banks to pass through the Reserve Bank of Australia (RBA)’s 25-basis-point interest rate cut.
Wendy Brown, Macquarie’s head of broker distribution, announced over LinkedIn that Australia’s fifth-largest mortgage lender will be dropping variable home loan reference rates by 0.25% this Friday.
Policymakers at the RBA opted to bring the cash rate down to 3.60% on Tuesday, thanks to inflation returning to the central bank’s target range of 2% and 3%.
“The unemployment rate has increased a little but remains low. We expect the Australian economy to grow over the next year, but uncertainty in the global economy remains high,” said the RBA.
Commonwealth Bank, Westpac and ANZ have also announced that variable rates will be coming down in the coming weeks.
ANZ’s acting group executive Australia retail Bruce Rush said: “We’re pleased to reduce our variable home loan rates at a time when a number of homeowners still need some extra breathing room.
“As we pass on further rate relief to our customers, some will use it to help take the pressure off their everyday expenses, while others will take the opportunity to keep their existing repayments and get ahead on their home loan.”
Non-bank lenders, regionals move ahead with rate cuts
Pepper Money has led the non-bank lenders pack in announcing a pass through of the Reserve Bank of Australia (RBA)’s 25-basis-point cut on Tuesday.
Effective from 28 August, Pepper Money will decrease the variable interest rate for existing residential, commercial, construction, and SMSF loans by 0.25% annually.
Among the second-tier banks, Bankwest has announced a 25-basis-point variable-rate reduction for all new and existing customers from 22 August.
AMP Bank will reduce interest rates across all variable rate home loans by 0.25% from 25 August.
Sean O’Malley, AMP Bank’s group executive, said: “We understand the importance of these rate reductions for our home loan customers, particularly in the current economic climate. By passing on the full cut, we’re helping ease pressure on household budgets and supporting financial wellbeing.”
More lenders are expected to announce their passthrough plans in due course
