The suspense is killing me: Only 1 in 3 lenders have announced rate cuts
Despite years of high-rate pain, many lenders have yet to announce plans to drop their rates for stressed mortgage holders, according to new analysis by Finder.
The Reserve Bank of Australia (RBA) announced a 25-basis-point reduction to the official cash rate on Tuesday, bringing it down to 4.10% from 4.35%.
This marks the first rate cut since December 2020 and follows 13 consecutive hikes that pushed rates to their highest level since 2011.
Commonwealth Bank, ANZ, NAB and Westpac have all announced they will implement the full 25-point reduction – taking anywhere from 10 to 17 days to pass on the cut to borrowers.
This delay alone – which is roughly in line with their timing on rate hikes in 2022 – will cost Aussies roughly $92 million in interest, according to analysis by Finder.
Collectively, the Big Four hold $1.546 trillion in owner-occupied mortgages – or nearly 72% of the market – according to Finder's analysis of Australian Prudential Regulation Authority (APRA) data.
Australian mortgage holders could save $103 a month if the rate cut is passed on in full by their lender, based on the average home loan of $641,416.
Graham Cooke, head of consumer research at Finder, said Aussie homeowners have a right to be upset if their lender isn't announcing a cut.
"Every extra day without a cut leaves many Aussie homeowners with tighter budgets.
"If your bank isn't looking out for you when all eyes are on an RBA cut, when will it?"
Cooke said refinancing is the best way to save on your mortgage costs.
"Social media was full of Aussies celebrating their bank announcing a 25-point cut on Tuesday – and it was refreshing to see some lenders announce they will be passing on the full rate cut.
"The reality is you can likely save more than a couple rate cuts by switching to a better deal.
"A reduction of even half a percent can be the difference of thousands of dollars a year.
"Shop around to find a variable home loan that offers a lower interest rate than your current provider. The very lowest rates now have a '5' in front of them."
Top lenders passing on the RBA's February rate cut
| Lender | Variable rate change | Effective date |
| Athena | 25 basis points | 18 February |
| ANZ | 25 basis points | 28 February |
| Commonwealth Bank | 25 basis points | 28 February |
| NAB | 25 basis points | 28 February |
| Suncorp | 25 basis points | 28 February |
| Macquarie Bank | 25 basis points | 28 February |
| Westpac | 25 basis points | 4 March |
| Bank of Melbourne | 25 basis points | 4 March |
| St.George | 25 basis points | 4 March |
| BankSA | 25 basis points | 4 March |
| ING | 25 basis points | 4 March |
| Source: Finder (full list at link) |  |
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