{"id":104167,"date":"2025-06-09T17:35:00","date_gmt":"2025-06-09T07:35:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=104167"},"modified":"2025-06-09T17:18:42","modified_gmt":"2025-06-09T07:18:42","slug":"rba-cuts-rates-banks-havent-passed-it-on-yet","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/rba-cuts-rates-banks-havent-passed-it-on-yet\/","title":{"rendered":"RBA Cuts Rates\u2014But These Banks Haven\u2019t Passed It on Yet"},"content":{"rendered":"\n

Major lenders have responded swiftly to recent RBA <\/strong>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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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\u2019s 0.25% May rate reduction<\/strong>, sparking accusations of unfair practices.<\/p>\n\n\n\n

Disparity in Lender Responses to the RBA\u2019s May 2025 Decision<\/h2>\n\n\n\n

On 20 May 2025, the RBA announced its second rate cut<\/a> of the year<\/strong>, reducing the official cash rate from 4.10% to 3.85%. According to Finspo, Australia\u2019s leading mortgage rate tracker, the \u201cBig Four\u201d banks\u2014ANZ, Commonwealth Bank, NAB and Westpac\u2014promptly implemented the full cut, with most applying the changes by 30 May or early June.<\/p>\n\n\n\n

In total, over 100 lenders monitored by comparison platforms have followed suit. Institutions such as ING, Macquarie Bank, Bankwest, and People\u2019s Choice are among those noted for timely implementation, often within ten days of the RBA announcement.<\/p>\n\n\n\n

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<\/strong>. These lenders have come under scrutiny for what consumer advocates argue is a failure to support customers during a high-cost living period.<\/p>\n\n\n\n

Graham Cooke<\/a>, head of consumer research at Finder, noted: \u201cThe 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,\u201d<\/p>\n\n\n\n

Full List of Banks Who Passed on the May 2025 Rate Cut, With Effective Dates<\/h2>\n\n\n\n

The following lenders have reduced their variable home loan rates, with their effective date listed alongside:<\/p>\n\n\n\n

    \n
  • ANZ \u2013 30 May \u2013 5.59%<\/li>\n\n\n\n
  • Commonwealth Bank \u2013 30 May \u2013 5.59%<\/li>\n\n\n\n
  • NAB \u2013 30 May \u2013 5.94%<\/li>\n\n\n\n
  • Westpac \u2013 3 June \u2013 5.59%<\/li>\n\n\n\n
  • Adelaide Bank \u2013 6 June \u2013 5.79%<\/li>\n\n\n\n
  • AMP \u2013 2 June \u2013 5.64%<\/li>\n\n\n\n
  • Arab Bank Australia \u2013 3 June \u2013 5.45%<\/li>\n\n\n\n
  • Athena \u2013 20 May \u2013 5.74%<\/li>\n\n\n\n
  • Aussie \u2013 6 June \u2013 5.69%<\/li>\n\n\n\n
  • Australian Military Bank \u2013 3 June \u2013 5.64%<\/li>\n\n\n\n
  • Australian Mutual Bank \u2013 1 June \u2013 5.39%<\/li>\n\n\n\n
  • Australian Unity \u2013 4 June \u2013 5.54%<\/li>\n\n\n\n
  • Auswide Bank \u2013 5 June \u2013 5.59%<\/li>\n\n\n\n
  • Bank Australia \u2013 2 June \u2013 5.63%<\/li>\n\n\n\n
  • Bank First \u2013 29 May \u2013 5.49%<\/li>\n\n\n\n
  • Bank of China \u2013 3 June \u2013 5.43%<\/li>\n\n\n\n
  • Bank of Melbourne \u2013 3 June \u2013 5.79%<\/li>\n\n\n\n
  • Bank of Sydney \u2013 3 June \u2013 5.54%<\/li>\n\n\n\n
  • Bank of us \u2013 11 June \u2013 5.64%<\/li>\n\n\n\n
  • Bank Orange \u2013 2 June \u2013 5.44%<\/li>\n\n\n\n
  • BankSA \u2013 3 June \u2013 5.79%<\/li>\n\n\n\n
  • BankVic \u2013 3 June \u2013 5.48%<\/li>\n\n\n\n
  • BankWAW \u2013 3 June \u2013 5.29%<\/li>\n\n\n\n
  • Bankwest \u2013 30 May \u2013 5.69%<\/li>\n\n\n\n
  • bcu \u2013 10 June \u2013 5.49%<\/li>\n\n\n\n
  • Bendigo Bank \u2013 6 June \u2013 5.64%<\/li>\n\n\n\n
  • Beyond Bank \u2013 3 June \u2013 5.64%<\/li>\n\n\n\n
  • Bluestone \u2013 11 June \u2013 6.54%<\/li>\n\n\n\n
  • BOQ \u2013 6 June \u2013 5.63%<\/li>\n\n\n\n
  • Border Bank \u2013 27 May \u2013 5.34%<\/li>\n\n\n\n
  • Broken Hill Bank \u2013 4 June \u2013 6.39%<\/li>\n\n\n\n
  • Cairns Bank \u2013 4 June \u2013 5.74%<\/li>\n\n\n\n
  • Central West Credit Union \u2013 29 May \u2013 5.79%<\/li>\n\n\n\n
  • Coastline Credit Union \u2013 29 May \u2013 6.44%<\/li>\n\n\n\n
  • Community First Bank \u2013 11 June \u2013 5.49%<\/li>\n\n\n\n
  • Credit Union SA \u2013 4 June \u2013 5.49%<\/li>\n\n\n\n
  • Defence Bank \u2013 28 May \u2013 5.59%<\/li>\n\n\n\n
  • Dnister \u2013 3 June \u2013 5.59%<\/li>\n\n\n\n
  • Easy Street \u2013 4 June \u2013 5.59%<\/li>\n\n\n\n
  • Fire Service Credit Union \u2013 1 June \u2013 5.59%<\/li>\n\n\n\n
  • Firefighters Mutual Bank \u2013 1 June \u2013 5.49%<\/li>\n\n\n\n
  • Firstmac \u2013 3 June \u2013 5.78%<\/li>\n\n\n\n
  • First Option Bank \u2013 2 June \u2013 5.49%<\/li>\n\n\n\n
  • Freedom Lend \u2013 16 June \u2013 5.65%<\/li>\n\n\n\n
  • G & C Mutual Bank \u2013 1 June \u2013 5.49%<\/li>\n\n\n\n
  • Gateway Bank \u2013 27 May \u2013 5.45%<\/li>\n\n\n\n
  • Geelong Bank \u2013 30 May \u2013 5.64%<\/li>\n\n\n\n
  • Goulburn Murray Credit Union \u2013 3 June \u2013 5.69%<\/li>\n\n\n\n
  • Greater Bank \u2013 30 May \u2013 5.49%<\/li>\n\n\n\n
  • Great Southern Bank \u2013 3 June \u2013 5.64%<\/li>\n\n\n\n
  • Heritage Bank \u2013 30 May \u2013 5.49%<\/li>\n\n\n\n
  • Homeloans \u2013 11 June \u2013 5.89%<\/li>\n\n\n\n
  • HomeStar Finance \u2013 16 June \u2013 5.49%<\/li>\n\n\n\n
  • Horizon Bank \u2013 1 June \u2013 5.39%<\/li>\n\n\n\n
  • HSBC \u2013 2 June \u2013 5.49%<\/li>\n\n\n\n
  • Hume Bank \u2013 2 June \u2013 5.49%<\/li>\n\n\n\n
  • Illawarra Credit Union \u2013 4 June \u2013 5.49%<\/li>\n\n\n\n
  • IMB \u2013 30 May \u2013 5.54%<\/li>\n\n\n\n
  • ING \u2013 3 June \u2013 5.64%<\/li>\n\n\n\n
  • Liberty Financial \u2013 3 June \u2013 5.99%<\/li>\n\n\n\n
  • loans.com.au \u2013 3 June \u2013 5.49%<\/li>\n\n\n\n
  • Macquarie Bank \u2013 23 May \u2013 5.64%<\/li>\n\n\n\n
  • ME \u2013 7 June \u2013 5.63%<\/li>\n\n\n\n
  • Mortgage House \u2013 6 June \u2013 5.39%<\/li>\n\n\n\n
  • MOVE Bank \u2013 1 June \u2013 5.44%<\/li>\n\n\n\n
  • MyState Bank \u2013 5 June \u2013 5.54%<\/li>\n\n\n\n
  • Newcastle Permanent \u2013 30 May \u2013 5.49%<\/li>\n\n\n\n
  • NICU \u2013 1 June \u2013 5.49%<\/li>\n\n\n\n
  • NRMA Home Loan \u2013 6 June \u2013 5.53%<\/li>\n\n\n\n
  • P&N Bank \u2013 10 June \u2013 5.63%<\/li>\n\n\n\n
  • Pacific Mortgage Group \u2013 2 June \u2013 5.39%<\/li>\n\n\n\n
  • People\u2019s Choice Credit Union \u2013 30 May \u2013 5.39%<\/li>\n\n\n\n
  • Pepper Money \u2013 5 June \u2013 6.04%<\/li>\n\n\n\n
  • Police Bank \u2013 27 May \u2013 5.34%<\/li>\n\n\n\n
  • Police Credit Union \u2013 1 June \u2013 5.49%<\/li>\n\n\n\n
  • Qantas Money \u2013 6 June \u2013 5.68%<\/li>\n\n\n\n
  • QBank \u2013 6 June \u2013 5.49%<\/li>\n\n\n\n
  • Qudos Bank \u2013 29 May \u2013 5.44%<\/li>\n\n\n\n
  • Queensland Country Bank \u2013 4 June \u2013 5.49%<\/li>\n\n\n\n
  • RACQ Bank \u2013 3 June \u2013 5.39%<\/li>\n\n\n\n
  • Regional Australia Bank \u2013 4 June \u2013 5.44%<\/li>\n\n\n\n
  • resi \u2013 20 May \u2013 6.39%<\/li>\n\n\n\n
  • RESIMAC Financial Services \u2013 11 June \u2013 5.89%<\/li>\n\n\n\n
  • Southern Cross Credit Union \u2013 1 June \u2013 5.73%<\/li>\n\n\n\n
  • South West Slopes Bank \u2013 3 June \u2013 5.70%<\/li>\n\n\n\n
  • St. George \u2013 3 June \u2013 5.79%<\/li>\n\n\n\n
  • Sucasa \u2013 16 June \u2013 5.89%<\/li>\n\n\n\n
  • Summerland Bank \u2013 3 June \u2013 5.34%<\/li>\n\n\n\n
  • Suncorp \u2013 30 May \u2013 5.65%<\/li>\n\n\n\n
  • Teachers Mutual Bank \u2013 1 June \u2013 5.49%<\/li>\n\n\n\n
  • The Capricornian \u2013 6 June \u2013 5.39%<\/li>\n\n\n\n
  • The Mac \u2013 4 June \u2013 5.42%<\/li>\n\n\n\n
  • The Mutual Bank \u2013 TBC \u2013 5.49%<\/li>\n\n\n\n
  • Tiimely Home \u2013 6 June \u2013 5.54%<\/li>\n\n\n\n
  • Transport Mutual Credit Union \u2013 2 June \u2013 6.44%<\/li>\n\n\n\n
  • Ubank \u2013 29 May \u2013 5.59%<\/li>\n\n\n\n
  • UniBank \u2013 1 June \u2013 5.49%<\/li>\n\n\n\n
  • Unity Bank \u2013 1 June \u2013 5.49%<\/li>\n\n\n\n
  • Unloan \u2013 20 May \u2013 5.49%<\/li>\n\n\n\n
  • Up Home Loan \u2013 1 June \u2013 5.50%<\/li>\n\n\n\n
  • Virgin Money \u2013 6 June \u2013 6.19%<\/li>\n\n\n\n
  • Warwick Credit Union \u2013 4 June \u2013 5.89%<\/li>\n\n\n\n
  • Woolworths Team Bank \u2013 10 June \u2013 5.69%<\/li>\n\n\n\n
  • Yard \u2013 6 June \u2013 5.89%<\/li>\n\n\n\n
  • Yellow Brick Road \u2013 20 May \u2013 6.39%<\/li>\n<\/ul>\n\n\n\n

    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\u2019s loan data.<\/p>\n\n\n\n

    Cooke highlighted that \u201ca reduction of even half a per cent<\/strong> can be the difference of thousands of dollars a year,\u201d urging borrowers to explore refinancing options. He added that the most competitive rates now begin with a \u20185\u2019, with many smaller lenders offering new borrower deals below 5.5%.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Australia\u2019s major lenders were quick to respond to the RBA\u2019s May rate cut, but a handful of banks are still holding back. While most borrowers now benefit from lower repayments, others are left waiting as the days drag on.<\/p>\n","protected":false},"author":10,"featured_media":104169,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-104167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","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\/104167","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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=104167"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/104167\/revisions"}],"predecessor-version":[{"id":104170,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/104167\/revisions\/104170"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/104169"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=104167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=104167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=104167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}