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:
Commonwealth Bank (CBA): Effective May 30
National Australia Bank (NAB): Effective May 30
ANZ: Effective May 30
Westpac: Effective June 3
Macquarie Bank: Effective May 23
Suncorp Bank: Effective May 30
ING: Effective June 3
AMP: Effective June 2
Bank of Queensland (BOQ): Effective June 6
Virgin Money: Effective June 6
Athena Home Loans: Effective immediately (May 20)
Unloan: Effective immediately (May 20)
Pepper Money: Effective June 5
People’s Choice Credit Union: Effective May 30
Bankwest: Effective May 30
St.George: Effective June 3
BankSA: Effective June 3
Bank of Melbourne: Effective June 3
Some lenders have not yet confirmed if or when they will pass on the rate cut:
Broken Hill Bank: Proposal to implement the cut in early June, pending board approval.
BCU Bank
Aussie Home Loans
Bank of Us
loans.com.au
Community First Bank
Adelaide Bank
IMB Bank
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 |
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.
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.
