{"id":101359,"date":"2025-02-13T17:00:00","date_gmt":"2025-02-13T06:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=101359"},"modified":"2025-02-13T16:42:44","modified_gmt":"2025-02-13T05:42:44","slug":"commonwealth-bank-of-australia-confirms-when-borrowers-will-get-154-relief-after-rba-rate-cut","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/commonwealth-bank-of-australia-confirms-when-borrowers-will-get-154-relief-after-rba-rate-cut\/","title":{"rendered":"Commonwealth Bank of Australia Confirms When Borrowers Will Get $154 Relief After RBA Rate Cut"},"content":{"rendered":"\n<p>The <strong>Commonwealth Bank of Australia (CBA)<\/strong> has outlined the timeline for passing on a potential <strong>interest rate cut<\/strong> to its nearly two million mortgage customers, should the <strong>Reserve Bank of Australia (RBA)<\/strong> decide to lower the official <strong>cash rate<\/strong>.<\/p>\n\n\n\n<p>The RBA is set to meet on <strong>Tuesday<\/strong>, where it will determine whether to <strong>hike, hold, or cut<\/strong> the cash rate from its current <strong>13-year high of 4.35 per cent<\/strong>. The decision is expected to have significant financial implications for Australian homeowners, with a <strong>Yahoo Finance survey<\/strong> revealing that <strong>19 per cent<\/strong> of respondents are at risk of having to sell their homes if rates remain unchanged.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">CBA Signals a Quick Response to a Rate Cut<\/h2>\n\n\n\n<p>CBA CEO <strong>Matt Comyn<\/strong> stated in an interview with <strong>9News<\/strong> that the bank would make a decision on mortgage rate adjustments relatively quickly if the <a href=\"https:\/\/en.econostrum.info\/au\/nab-joins-big-banks-in-bold-rba-rate-cut-prediction\/\" target=\"_blank\" data-type=\"post\" data-id=\"100859\" rel=\"noreferrer noopener\">RBA announces a cut<\/a>.<\/p>\n\n\n\n<p>\u201cI think you can expect a decision relatively quickly [on mortgage rate cuts],\u201d Comyn said.<\/p>\n\n\n\n<p>\u201cIt\u2019ll be communicated through a variety of channels that probably typically take effect in something like <strong>10 days<\/strong>\u2026 Might be slightly faster than that.\u201d<\/p>\n\n\n\n<p>Although financial institutions determine their own rates independently, history suggests that banks do not always pass on <strong>RBA rate cuts in full<\/strong>. Between <strong>2015 and 2020<\/strong>, the RBA reduced rates <strong>10 times<\/strong>, yet CBA, <strong>NAB<\/strong>, and <strong>ANZ<\/strong> only implemented <strong>four<\/strong> of those cuts for borrowers, while <strong>Westpac<\/strong> passed on just <strong>two<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Much Could Borrowers Save?<\/h2>\n\n\n\n<p>The potential savings for mortgage holders depend on loan size and the <strong>extent of the rate cut<\/strong>. <strong>Canstar<\/strong> has estimated potential monthly savings based on a <strong>0.25 percentage point<\/strong> reduction in rates:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>$600,000 loan<\/strong>: $92 per month<\/li>\n\n\n\n<li><strong>$750,000 loan<\/strong>: $115 per month<\/li>\n\n\n\n<li><strong>$1,000,000 loan<\/strong>: $154 per month<\/li>\n<\/ul>\n\n\n\n<p>These figures assume an <strong>owner-occupier<\/strong> with a <strong>25-year loan term<\/strong> at an <strong>average variable rate of 6.33 per cent<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mortgage Debt Reaches Record Highs<\/h2>\n\n\n\n<p>The discussion on rate cuts comes as <strong>new research<\/strong> reveals that the average mortgage size for <strong>owner-occupiers<\/strong> has reached a <strong>record high of $666,000<\/strong>. According to <strong><a href=\"https:\/\/www.abs.gov.au\/statistics\/economy\/price-indexes-and-inflation\/consumer-price-index-australia\/latest-release\" target=\"_blank\" rel=\"noreferrer noopener\">Australian Bureau of Statistics (ABS) data<\/a><\/strong>, the average loan amount has increased across all states and territories <strong>except Victoria<\/strong>.<\/p>\n\n\n\n<p>Between <strong>December 2023 and February 2024<\/strong>, the <strong>national average loan size<\/strong> increased by <strong>$52,000<\/strong>, equating to an additional <strong>$142 per day<\/strong> in debt for borrowers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Will the Rba Cut Rates This Month?<\/h2>\n\n\n\n<p>The <strong>Big Four Banks<\/strong> have made varying predictions regarding the timing and extent of rate cuts in <strong>2024<\/strong>.<\/p>\n\n\n\n<p>Here\u2019s what they expect:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Commonwealth Bank<\/strong>: 4 cuts, reducing the cash rate from <strong>4.35% to 3.35%<\/strong><\/li>\n\n\n\n<li><strong>Westpac<\/strong>: 4 cuts<\/li>\n\n\n\n<li><strong>NAB<\/strong>: 5 cuts, bringing the rate down to <strong>3.1%<\/strong><\/li>\n\n\n\n<li><strong>ANZ<\/strong>: 2 cuts, reducing the rate to <strong>3.85%<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Money markets<\/strong> indicate a <strong>93 per cent probability<\/strong> that the RBA will announce a rate cut at its upcoming <strong>February 18 meeting<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Economic Indicators Point To Slowing Inflation<\/h2>\n\n\n\n<p>The <strong>RBA\u2019s decision<\/strong> will largely be influenced by inflation trends. The <strong>latest ABS data<\/strong> shows that annual inflation fell to <strong>2.4 per cent<\/strong>, with <strong>underlying inflation<\/strong>\u2014a key measure used by the RBA\u2014easing to <strong>3.2 per cent<\/strong>, its lowest level in <strong>three years<\/strong>.<\/p>\n\n\n\n<p>If the RBA decides to cut rates, borrowers banking with CBA can expect a rate adjustment to take effect within <strong>two weeks<\/strong>. However, whether <strong>all lenders<\/strong> will pass on the full reduction remains uncertain.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Millions of homeowners are waiting to see if their mortgage rates will finally drop. Commonwealth Bank\u2019s CEO has hinted at how long it will take for relief to reach borrowers. A surprising trend from past rate cuts raises questions about what to expect. <\/p>\n","protected":false},"author":5,"featured_media":101365,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-101359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-welfare","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/101359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=101359"}],"version-history":[{"count":7,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/101359\/revisions"}],"predecessor-version":[{"id":101367,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/101359\/revisions\/101367"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/101365"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=101359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=101359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=101359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}