Westpac first of the big four to cut rates in full after RBA cut
Joel RobinsonMarch 2, 2020
Westpac are the first of the big four banks to cut following the RBA cutting the official cash rate to 0.5 per cent.
They acted within four minutes of the RBA announcement, passing on the full 25 basis point cut to their variable home loans.
The changes will take effect on 17 March.
Westpac were last to cut in October, the last time the RBA cut rates, when they cut 15 basis points.
Sally Tindall, research director at RateCity.com.au, said Westpac should be commended for passing on a full cut to their variable rate customers.
"Hopefully this will prompt the other big four banks to follow suit", Tindall said, adding the average Westpac home loan customer would save around $55 a month or $662 a year.
“Some banks may choose not to pass on the full cut, due to pressure on their profit margins. Variable rate customers should call their bank and find out what they intend to do.
“If borrowers aren’t happy with the cut their bank is passing on, they can choose to take their business walking.
“Switching lenders in this competitive environment is likely to secure a far bigger cut than the 0.25 per cent on offer from the RBA.
“A number of smaller lenders have already committed to cutting their rates by the full 0.25 per cent, sending variable rates to a new low of 2.44 per cent,” she said.
Joel Robinson
Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.
