When will lenders pass on the cash rate?
Following the Reserve Bank of Australia’s (RBA) recent 0.25 percentage point cash rate cut to 3.85%, numerous Australian lenders have announced plans to pass on the reduction to their customers.
Here’s a summary of the major lenders and the effective dates for their rate adjustments as of May 27, 2025:
Major Banks
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Commonwealth Bank (CBA): Effective May 30
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National Australia Bank (NAB): Effective May 30
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ANZ: Effective May 30
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Westpac: Effective June 3
Other Notable Lenders
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Macquarie Bank: Effective May 23
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Suncorp Bank: Effective May 30
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ING: Effective June 3
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AMP: Effective June 2
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Bank of Queensland (BOQ): Effective June 6
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Virgin Money: Effective June 6
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Athena Home Loans: Effective immediately (May 20)
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Unloan: Effective immediately (May 20)
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Pepper Money: Effective June 5
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People’s Choice Credit Union: Effective May 30
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Bankwest: Effective May 30
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St.George: Effective June 3
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BankSA: Effective June 3
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Bank of Melbourne: Effective June 3
Lenders Yet to Announce or Confirm Rate Cuts
Some lenders have not yet confirmed if or when they will pass on the rate cut:
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Broken Hill Bank: Proposal to implement the cut in early June, pending board approval.
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BCU Bank
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Aussie Home Loans
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Bank of Us
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loans.com.au
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Community First Bank
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Adelaide Bank
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IMB Bank
Will your repayments be automatically adjusted?
Most lenders do not automatically lower your repayments when interest rates fall. Here’s where each lender stands:
Repayments Adjusted Automatically? |
Lenders |
|---|---|
Yes |
AMP, Advantedge, Bank Australia, Bankwest, Firstmac, Macquarie, ME Bank, MyState, Pepper, Resimac, Suncorp, UBank, Teachers Mutual Bank, UniBank, ING, Gateway Bank |
No |
AFG Retro & Link, ANZ, Bank of Melbourne, Beyond Bank, Brighten, CBA, Granite, Great Southern Bank, HSBC, Liberty, NAB, People’s Choice, Redzed, St George, Westpac, Auswide Bank, Qudos Bank |
How much could you be saving?
The rate cut could lead to noticeable savings for homeowners with variable-rate mortgages. For instance, a 0.25% reduction on a $500,000 loan over 25 years could save approximately $59 per month, totalling around $708 annually. However, the actual savings will depend on the loan amount, term, and whether the lender passes on the full rate cut.
Next RBA Decision
The RBA’s next monetary policy meeting is scheduled for July 8, 2025. At this meeting, further adjustments to the cash rate may be considered based on economic conditions.
If you have a mortgage, let’s talk. We can check with your lender regarding the new rates and how they affect your repayments, and help review your loan terms to ensure they remain competitive in the current market.
