Major banks confirm reductions, but many borrowers still waiting for relief
Nearly half of mortgage lenders have yet to implement reductions to variable home loan rates following the Reserve Bank of Australia’s (RBA) latest cash rate cut.
Earlier this week, the RBA lowered the cash rate by 25 basis points to 3.60%, marking the third reduction this year. According to financial comparison website Finder, almost six in 10 lenders—including the country’s major banks – have confirmed they will pass on the full rate cut.
However, many borrowers may not see changes reflected in their repayments until later this month or even September.
“So far, almost 60% of the nation’s lenders have announced they’ll pass on the latest rate cut in full,” said Richard Whitten, home loans expert at Finder. “That leaves many borrowers still waiting for relief.
“Even those who have announced rate cuts are in some cases stalling, with delays of up to three weeks for the rate cut to take effect. For households under pressure, every day of delay matters.
“Now is the time to check if your home loan is still the most competitive on the market. Refinancing to a better deal could put hundreds of dollars back in your pocket every month.”
Finder’s analysis indicates that no lender has formally stated they will not pass on the August cash rate reduction. The company also noted that more than 100 lenders passed on previous rate cuts in February and May in full.
For borrowers with a $750,000 mortgage, the latest cut could mean a monthly saving of $119, or $1,430 annually, once lenders apply the new rates.
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