Following the Reserve Bank of Australia’s May decision to cut the official cash rate by 0.25%, a number of lenders quickly announced they would pass on the full reduction to their customers. These include CBA, Westpac, NAB, ANZ, Suncorp Bank, ING, AMP, Athena Home Loans, Bluestone, Pepper Money, and MoneyMe, among others.
The changes predominantly affect variable-rate home loans and business lending products, with most rate adjustments effective from late May to early June.
CBA will reduce home loan variable interest rates by 0.25% per annum, effective May 30.
Angus Sullivan (pictured left), CBA group executive retail banking services, said the move would ease pressure on households.
The RBA decision “will help to deliver some much-needed additional relief for many Australians with a mortgage,” Sullivan said.
He noted that the combined effect of the May and February cuts could bring noticeable benefits.
“After two rate cuts many home loan customers will start to see a more meaningful change month to month,” Sullivan said.
For business customers, CBA is also cutting rates on eligible lending products, including BetterBusiness Loans and Business Overdrafts, from May 30.
“Australian businesses have been navigating unexpected challenges in recent months,” said Mike Vacy-Lyle, CBA group executive business banking. “We’ll continue to focus on supporting our customers, allowing them to grow and invest in their operations.”
ANZ will cut variable home loan rates by 0.25% p.a. effective May 30.
“The RBA’s second rate cut will be another welcome reprieve for our home loan customers, who have been facing high cost of living pressures for some time,” said Maile Carnegie (pictured centre), ANZ group executive Australia retail.
“We remain committed to supporting our customers through tailored solutions and urge them to reach out sooner rather than later to discuss options for any additional support required.”
NAB confirmed it will cut its standard variable home loan rate by 0.25% p.a. from May 30.
“We’re pleased to announce that the variable rate on NAB home loans is decreasing,” said Ana Marinkovic (pictured right), NAB group executive personal banking. “This provides some relief for those customers still dealing with cost-of-living challenges.”
Marinkovic noted that most customers opt to keep repayments unchanged, generating savings over time.
“A customer with a 30-year mortgage of $550,000 would save $83,000 in interest over the life of the loan and pay it off two years earlier if they kept repayments the same following a 0.25% reduction in rates,” she said.
AMP Bank will reduce all variable home loan rates by 0.25% p.a. effective 2 June 2025.
“We’re pleased to pass on this rate reduction to our customers, helping to ease some of the financial pressure many are feeling,” said Michael Christofides, AMP Bank director of lending and everyday banking.
RACQ Bank confirmed it will reduce variable home and business loan rates by 0.25% p.a. from June 3 for new and existing members.
“We’re here to help,” the lender said. “A hardship arrangement could change how often or how much you need to pay and help stop missed payments showing on your credit report.”
