Home Loan Interest Rates – Banks Slow to Pass On Cut
Having been in the mortgage industry for just over 6 years I have seen home loan interest rates rise and fall. One of the most common observations is that banks are slower to pass on a rate cut compared to when interest rates rise.
The table below shows that there is a 24 day difference between banks passing on the interest rate cut. Commonwealth Bank was the quickest to pass on the recent rate cut 3 days after it was announced. The worst offenders are Bendigo Bank and Adelaide Bank making their customers wait until the 28th November before they get some relief.
NAB are waiting intil the 11th to pass on the cut while ANZ and Westpac are letting their customer wait 2 weeks until they recieve relief. In a funny move BankWest are reducing their interest rates on the 14th of November but they are letting their Rate Tracker and Rate Tracker Ultra customers wait until the 18th. They say it is apart of their terms and conditions for these products.
Current Bank Interest Rates
| Bank | Rate Cut | Effective date | New Rate |
| Adelaide Bank/ Bendigo Bank | -0.25% | 28th Nov | 7.55% |
| AMP | -0.25% | 11th Nov | 7.57% |
| ANZ | -0.25% | 14th Nov | 7.55% |
| Bank of Melbourne | -0.25% | 14th Nov | 7.55% |
| BankWest | -0.25 | 14th to 18th | 7.45% |
| Citibank | -0.25% | 18th Nov | 7.77% |
| Commonwealth Bank | -0.25% | 4th Nov | 7.56% |
| Connective Home Loans | -0.25% | 7th Nov | 7.57% |
| Homeside Lending | -0.20% | 11th Nov | 7.45% |
| ING Bank | -0.25% | 7th Nov | – |
| Member equity bank ( ME) | -0.25% | 7th Nov | 7.54% |
| Macqauire Bank | -0.25% | 21 Nov | 7.55% |
| NAB | -0.20% | 11 Nov | 7.47% |
| St George Bank | -0.25% | 14th Nov | 7.55% |
| Suncorp Bank | -0.25% | 18th Nov | 7.58% |
| Westpac | -0.25% | 14th Nov | 7.61% |
Please Note: The rates above are each banks standard variable rate. There are many other loans and discounts available from these lenders
Obviously, the strategy of delaying interest rate decreases and passing on rate increases quickly is all about profit making. All banks and non banks are guilty of this practice and there is not much the consumer do about it but vote with their feet.
If you are interested in getting a FREE HOME /INVESTMENT LOAN CHECK from an ASIC liscenced broker in your local area, feel free to complete the contact form below. They will compare your mortgage against hundreds or other loans to see if you are over paying on interest repayments and fees.
