Bendigo Bank has stepped up to match the Reserve Bank of Australia’s (RBA) interest rate cut, offering mortgage relief to its customers. The bank will reduce its variable home loan rates by 0.25%, bringing its lowest rate from 6.09% down to 5.84%, effective from March 7.
This move follows similar announcements from the Big Four banks – Commonwealth Bank, NAB, ANZ, and Westpac – who have also passed on the full cut. However, some lenders are still dragging their feet, leaving many Aussie homeowners wondering when they’ll see some relief.
The Race to Pass On the Rate Cut
After the RBA slashed the official cash rate, major banks quickly followed suit, with Commonwealth Bank, NAB, and ANZ implementing the cut from February 28, and Westpac following on March 4.
Other lenders like ING and Macquarie have also confirmed they’ll pass on the full reduction, effective from early March.
Bendigo Bank’s decision, although slightly delayed compared to the majors, ensures its customers won’t miss out on much-needed savings.
“We know many of our lending customers welcomed the RBA’s recent decision to cut interest rates for the first time since November 2020,” said Bendigo Bank’s Chief Customer Officer for Consumer Banking, Taso Corolis. “We’re pleased to pass on the full benefit of this cut to homeowners.”
But not all banks have been as quick to act. According to Finder, the delay from some lenders is costing mortgage holders around $92 million in interest as they wait for relief.
How Much Will You Save?
For homeowners with a mortgage, the 0.25% rate cut could lead to real savings. Canstar’s calculations show that if your bank passes on the full reduction, you could save:
- $600,000 loan → $92 per month
- $750,000 loan → $115 per month
- $1,000,000 loan → $154 per month
These estimates are based on an owner-occupier loan with a 6.33% variable rate and 25 years remaining.
The Lowest Home Loan Rates in Australia
Once the rate cuts take effect, some of the lowest advertised variable rates will drop to 5.64%, with lenders like Australian Mutual Bank, Homestar Finance, and RACQ leading the charge.
For borrowers, this could be the perfect time to shop around for a better deal. With some banks still holding off on passing down savings, mortgage holders should consider comparing lenders or negotiating with their current bank.
“Every extra day without a cut leaves many Aussie homeowners with tighter budgets,” said Finder’s Head of Consumer Research, Graham Cooke. “If your bank isn’t looking out for you when all eyes are on an RBA cut, when will it?”
What Should Homeowners Do Next?
If your bank hasn’t passed on the full rate cut, it might be time to take action. Consider:
- Checking your lender’s response – Are they reducing rates? If so, when?
- Comparing home loans – Some lenders are offering significantly lower rates.
- Negotiating with your bank – A simple phone call could lead to a better deal.
- Exploring refinancing options – If your current lender isn’t competitive, moving your loan might be worth it.
With interest rates finally heading south, Aussie homeowners should make sure they get their share of the savings. If your bank is still holding out, it may be time to ask, why?
