Only one bank has thus far passed on the RBA's 50bp cut in full, with the majors holding back on home loan customers.
Westpac announced on Friday it would cut its headline standard variable rate by 37bps to 7.09%. The move came after the bank last week lowered the minimum loan amount eligible for its 0.7% discount rates from $250,000 to $150,000 through the bank's Premier Advantage Package.
Westpac has become the third major to move on rates, with CBA announcing a 40bp cut and NAB dropping rates by 32bps. ANZ will announce its rate decision on Friday. But comparison site RateCity has said only one lender in the country has thus far matched the Reserve Bank cut.
"Out of the six lenders that we know to have dropped their variable home loan rates so far, only one small lender – Unicredit WA – has passed on the Reserve Bank’s full rate cut of 50bps," RateCity CEO Damian Smith said.
Regardless, Smith said mortgage holders will still find themselves better off.
"While it's disappointing that the full RBA cut hasn't been generally passed on, average mortgage holders will still benefit by between $50 and $100 per month on the basis of the changes these six lenders have announced," he said.
Westpac subisdiary St. George has also announced a cut to rates, dropping its standard variable rate 38bps to 7.04%, while fellow Westpac brand Bank of Melbourne has cut 41bps from its standard variable rate, dropping to 6.99%.
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