Major lenders have responded swiftly to recent RBA decisions, but a small number continue to delay passing savings on to customers. The growing disparity has drawn criticism amid renewed calls for transparency and competition.
After two consecutive cuts to the Reserve Bank of Australia’s (RBA) cash rate in 2025, most lenders adjusted their variable mortgage rates accordingly. Yet, some financial institutions are lagging behind, raising concerns among homeowners and industry analysts.
This shift marks a rare reversal in a long-standing trend where banks acted quickly to raise rates following hikes but were slower to reduce them after cuts. The current focus lies on a few remaining lenders that have not matched the RBA’s 0.25% May rate reduction, sparking accusations of unfair practices.
Disparity in Lender Responses to the RBA’s May 2025 Decision
On 20 May 2025, the RBA announced its second rate cut of the year, reducing the official cash rate from 4.10% to 3.85%. According to Finspo, Australia’s leading mortgage rate tracker, the “Big Four” banks—ANZ, Commonwealth Bank, NAB and Westpac—promptly implemented the full cut, with most applying the changes by 30 May or early June.
In total, over 100 lenders monitored by comparison platforms have followed suit. Institutions such as ING, Macquarie Bank, Bankwest, and People’s Choice are among those noted for timely implementation, often within ten days of the RBA announcement.
However, a minority remain unresponsive. According to Finder, Family First Credit Union, La Trobe, Laboratories Credit Union, Reduce and Well Money are yet to pass on the full reduction. These lenders have come under scrutiny for what consumer advocates argue is a failure to support customers during a high-cost living period.
Graham Cooke, head of consumer research at Finder, noted: “The competitive landscape among lenders plays a significant role. If one major bank passes on the full cut, others are often pressured to do the same to avoid losing customers,”
Full List of Banks Who Passed on the May 2025 Rate Cut, With Effective Dates
The following lenders have reduced their variable home loan rates, with their effective date listed alongside:
- ANZ – 30 May – 5.59%
- Commonwealth Bank – 30 May – 5.59%
- NAB – 30 May – 5.94%
- Westpac – 3 June – 5.59%
- Adelaide Bank – 6 June – 5.79%
- AMP – 2 June – 5.64%
- Arab Bank Australia – 3 June – 5.45%
- Athena – 20 May – 5.74%
- Aussie – 6 June – 5.69%
- Australian Military Bank – 3 June – 5.64%
- Australian Mutual Bank – 1 June – 5.39%
- Australian Unity – 4 June – 5.54%
- Auswide Bank – 5 June – 5.59%
- Bank Australia – 2 June – 5.63%
- Bank First – 29 May – 5.49%
- Bank of China – 3 June – 5.43%
- Bank of Melbourne – 3 June – 5.79%
- Bank of Sydney – 3 June – 5.54%
- Bank of us – 11 June – 5.64%
- Bank Orange – 2 June – 5.44%
- BankSA – 3 June – 5.79%
- BankVic – 3 June – 5.48%
- BankWAW – 3 June – 5.29%
- Bankwest – 30 May – 5.69%
- bcu – 10 June – 5.49%
- Bendigo Bank – 6 June – 5.64%
- Beyond Bank – 3 June – 5.64%
- Bluestone – 11 June – 6.54%
- BOQ – 6 June – 5.63%
- Border Bank – 27 May – 5.34%
- Broken Hill Bank – 4 June – 6.39%
- Cairns Bank – 4 June – 5.74%
- Central West Credit Union – 29 May – 5.79%
- Coastline Credit Union – 29 May – 6.44%
- Community First Bank – 11 June – 5.49%
- Credit Union SA – 4 June – 5.49%
- Defence Bank – 28 May – 5.59%
- Dnister – 3 June – 5.59%
- Easy Street – 4 June – 5.59%
- Fire Service Credit Union – 1 June – 5.59%
- Firefighters Mutual Bank – 1 June – 5.49%
- Firstmac – 3 June – 5.78%
- First Option Bank – 2 June – 5.49%
- Freedom Lend – 16 June – 5.65%
- G & C Mutual Bank – 1 June – 5.49%
- Gateway Bank – 27 May – 5.45%
- Geelong Bank – 30 May – 5.64%
- Goulburn Murray Credit Union – 3 June – 5.69%
- Greater Bank – 30 May – 5.49%
- Great Southern Bank – 3 June – 5.64%
- Heritage Bank – 30 May – 5.49%
- Homeloans – 11 June – 5.89%
- HomeStar Finance – 16 June – 5.49%
- Horizon Bank – 1 June – 5.39%
- HSBC – 2 June – 5.49%
- Hume Bank – 2 June – 5.49%
- Illawarra Credit Union – 4 June – 5.49%
- IMB – 30 May – 5.54%
- ING – 3 June – 5.64%
- Liberty Financial – 3 June – 5.99%
- loans.com.au – 3 June – 5.49%
- Macquarie Bank – 23 May – 5.64%
- ME – 7 June – 5.63%
- Mortgage House – 6 June – 5.39%
- MOVE Bank – 1 June – 5.44%
- MyState Bank – 5 June – 5.54%
- Newcastle Permanent – 30 May – 5.49%
- NICU – 1 June – 5.49%
- NRMA Home Loan – 6 June – 5.53%
- P&N Bank – 10 June – 5.63%
- Pacific Mortgage Group – 2 June – 5.39%
- People’s Choice Credit Union – 30 May – 5.39%
- Pepper Money – 5 June – 6.04%
- Police Bank – 27 May – 5.34%
- Police Credit Union – 1 June – 5.49%
- Qantas Money – 6 June – 5.68%
- QBank – 6 June – 5.49%
- Qudos Bank – 29 May – 5.44%
- Queensland Country Bank – 4 June – 5.49%
- RACQ Bank – 3 June – 5.39%
- Regional Australia Bank – 4 June – 5.44%
- resi – 20 May – 6.39%
- RESIMAC Financial Services – 11 June – 5.89%
- Southern Cross Credit Union – 1 June – 5.73%
- South West Slopes Bank – 3 June – 5.70%
- St. George – 3 June – 5.79%
- Sucasa – 16 June – 5.89%
- Summerland Bank – 3 June – 5.34%
- Suncorp – 30 May – 5.65%
- Teachers Mutual Bank – 1 June – 5.49%
- The Capricornian – 6 June – 5.39%
- The Mac – 4 June – 5.42%
- The Mutual Bank – TBC – 5.49%
- Tiimely Home – 6 June – 5.54%
- Transport Mutual Credit Union – 2 June – 6.44%
- Ubank – 29 May – 5.59%
- UniBank – 1 June – 5.49%
- Unity Bank – 1 June – 5.49%
- Unloan – 20 May – 5.49%
- Up Home Loan – 1 June – 5.50%
- Virgin Money – 6 June – 6.19%
- Warwick Credit Union – 4 June – 5.89%
- Woolworths Team Bank – 10 June – 5.69%
- Yard – 6 June – 5.89%
- Yellow Brick Road – 20 May – 6.39%
The consequence of even a 0.25% delay is tangible. On an average Australian mortgage of around A$600,000, the missed reduction equates to roughly A$100 per month, or A$1,200 annually, according to Finder’s loan data.
Cooke highlighted that “a reduction of even half a per cent can be the difference of thousands of dollars a year,” urging borrowers to explore refinancing options. He added that the most competitive rates now begin with a ‘5’, with many smaller lenders offering new borrower deals below 5.5%.
