All Big Four banks have now reduced their home loan rates
A number of lenders have finally reduced home loan interest rates following the Reserve Bank of Australia’s (RBA) August rate cut, with NAB, Westpac, and Bendigo Bank among those implementing notable reductions.
The recent spate of rate reductions – some have reached as much as 0.41 percentage points–reflects growing market sentiment that the RBA may continue its easing cycle. While certain lenders have yet to adjust their rates, the competitive landscape in the mortgage sector is becoming increasingly active, and further rate changes are anticipated in the near term.
Lending giant NAB has lowered variable home loan rates by 0.25 percentage points per annum across a broad selection of products, including loans for both owner-occupiers and investors. The revised rates apply to NAB’s Base Variable and Tailored Variable products, with the lowest owner-occupier rate now set at 5.69% per annum for loans with a loan-to-value ratio (LVR) of up to 95%.
Investor rates have also been reduced, with minimum rates starting from 6.21%, applicable to loans with LVRs up to 95% and minimum amounts from $20,000.
Another major lender, Westpac, has decreased home loan rates by 25 basis points, with its Flexi First Refinance option now offering rates from 5.34% per annum for owner-occupiers. Investor rates under the same product begin at 5.59% per annum.
Adjustments have also been made to the Premier Advantage and Rocket Repay packages, which are commonly used by borrowers seeking bundled banking solutions. Westpac’s rate changes, announced earlier this week, follows earlier moves by CBA and ANZ, marking the completion of rate reductions among the Big Four banks.
Meanwhile, Bendigo Bank has implemented some of the largest reductions, cutting home loan rates by up to 0.41 percentage points—exceeding the RBA’s 25 basis point cut. The most significant changes affect the Complete Home Loan Variable principal and interest products for higher LVR borrowers, with rates now starting at 5.44%.
The Express Variable product for owner-occupiers has been reduced by 0.25 percentage points, now at 5.39%. Investment loans, including both principal and interest and interest-only options, have also seen reductions across all LVR tiers, with new rates starting from 5.54%.
Other lenders have also implemented rate cuts. Great Southern Bank has reduced home loan rates by up to 35 basis points. ING has cut rates by 25 basis points across its Orange Advantage and Mortgage Simplifier products, including investment loans. HSBC and Bank of us have decreased rates by up to 0.30 percentage points, while Summerland Bank has reduced fixed rates by up to 0.20 percentage points.
A number of other institutions have passed on the full 25 basis point RBA reduction, including 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, and Geelong Bank.
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