ANZ first to cut rates again, this time the full cut

ANZ has announced it will decrease variable interest home loan rates in Australia by 0.25% pa, the full RBA rate cut, effective July 12.

They are once again the first of the Big Four to cut rates, unlike in June when they only passed on a 0.18 basis point reduction, they are passing on the full 0.25 basis points.

The first to call was once again Athena, a non-bank lender, who passed on the whole July cut, reducing rates by 0.25 basis points, which they also did in June.

ANZ may have made this decision following the backlash last month which prompted the federal Treasurer Josh Frydenberg to say, “I think the ANZ has let down its customers.”

“This is deeply disappointing from the ANZ," he stated following ANZ's decision to not pass on the full June RBA rate cut.

ANZ Group Executive, Australia Retail & Commercial, Mark Hand said: “Today we have decided we will reduce variable interest rates for our home loan customers by 0.25% pa. Importantly, we will apply this reduction across all our variable rate home loans.

“We looked at a number of factors before reaching this decision, including business performance, market conditions and the impact on our customers.

“On balance, we believe this is the right decision for our home loan customers and for our business,” Mr Hand said.

The ANZ changes are as follows: 

1. Decrease all variable interest rates for Australian home and residential investment loans by 0.25%pa.
2. For Standard Variable Rate Owner Occupiers paying principal and interest this reduces the Index Rate to 4.93%pa, from 5.18%pa.
3. For Standard Variable Rate Owner Occupiers paying interest only the Index Rate reduces to 5.48%pa, from 5.73% pa.

So far none of the Big Four have indicated as to whether they will reduce rates in line with ANZ.

But at around 6pm CBA announced it will reduce its standard variable rate home loans by between 0.19% p.a. and 0.25% p.a.

• Owner Occupied Principal and Interest Standard Variable Rate home loan reduced by 0.19% per annum (p.a) to a new record low rate of 4.93% p.a.
• Investor Principal and Interest Standard Variable Rate home loans reduced by 0.19% p.a. to 5.51% p.a.
• Owner Occupied Interest Only Standard Variable Rate home loans reduced by 0.25% p.a. to 5.42% p.a.
• Investor Interest Only Standard Variable Rate home loans reduced by 0.25% p.a. to 5.89% p.a.

CBA will also introduce a new special term deposit offer, with an extra bonus offer for existing pensioner customers.

At 6.30 NAB announced it will reduce its variable rate home loans by 0.19% per annum, effective 12 July. 

This is on top of the 0.25% reduction last month by NAB.

Around 6.30pm Westpac announced it was reducing its variable interest rates for home loan customers, including a reduction of 0.20% p.a for owner occupiers and a reduction of 0.30% p.a. for investors with interest only repayments.

With the same 0.2% last month, Westpac's combined rate cuts of the past two months ranks as the lowest for home loan customers.

The following interest rate changes will come into effect on Tuesday 16 July 2019 at Westpac.

• Variable home loan (owner occupier) rate has been reduced by .20% p.a. to 4.98% p.a. for customers with principal and interest repayments.
• Variable residential investment property loan reduced by .20% p.a. to 5.53% p.a. for customers with principal and interest repayments.
• Variable home loan (owner occupier) rate reduced by .20% p.a. to 5.57% p.a. for customers with interest only repayments.
• Variable residential investment property loan rate reduced by .30% p.a. to 5.79% p.a. for customers with interest only repayments.
   

“Today’s announcement means our Standard Variable Rate (SVR) will be the lowest it has been in more than 45 years for owner occupier home loan customers with principal and interest repayments,” David Lindberg, Westpac Chief Executive, Consumer said.