The Reserve Bank of Australia (RBA) has announced a cash rate reduction of 25 basis points in February, bringing the rate down from 4.35% to 4.10% per annum. This decision has triggered widespread interest rate cuts across various financial institutions in Australia.
Which Banks and Lenders Will Pass on the Rate Cut?
All the following cuts were made in response to the RBA’s February 18, 2025 cash rate reduction.
Last updated: February 20, 2025.
Key notes:
- P&I = Principal and Interest, IO= Interest Only, OO= Owner-occupiers
- Basis points explained: 1 basis point = 0.01%
- New lowest advertised variable rates: Excludes introductory & honeymoon rates and package rates. Rates are current as of the last update.
Athena Banks Leads with Immediate Rate Cut
Athena was the first to respond to the RBA rate cut, lowering its variable home loan rates by 25 basis points immediately. The new lowest advertised variable rate is 5.99% p.a., with a 5.99% p.a. comparison rate.
Learn More about Athena Home Loans
Rapid Responses from Major Banks
Several major banks followed swiftly with announcements of their respective rate cuts. ANZ, AMP Bank, Bankwest, and Commonwealth Bank all reported cutting their variable home loan rates by 25 basis points.
- ANZ: Effective February 28.
- AMP Bank: Effective February 28 for new customers and March 3 for existing customers.
- Bankwest: Effective February 28.
- Commonwealth Bank: Effective February 28.
ANZ Home Loans | AMP Home Loans | Bankwest Home Loans | Commonwealth Bank Home Loans
Other Lenders Announce Rate Cuts
Additionally, numerous other lenders have confirmed or are pending announcements of rate cuts, including Bendigo Bank, Heritage Bank, HSBC, Macquarie Bank, ME Bank, MyState Bank, NAB, P&N Bank, Resimac, St George, Teachers Mutual Bank, The Mutual Bank, UBank, Unloan, Westpac, and Yellow Brick Road.
Some effective dates vary, with most cuts set to take effect in early March.
Macquarie Bank Home Loans | ME Bank Home Loans | NAB Home Loans | Westpac Home Loans
Impact on Home Loan Borrowers
The reduction in interest rates can provide borrowers with immediate financial relief, making their monthly repayments more manageable. For new home loan applications, these reductions likely mean access to more competitive rates, which can lower borrowing costs over the long term.
Pending Rate Cuts
Not all lenders have yet confirmed their responses to the RBA’s rate cut. Some notable entries missing are Australian Military Bank, Australian Unity, Credit Union SA, Police Credit Union, QBank, Qudos Bank, Reduce Home Loans, Tiimely Home, Virgin Money, Well Home Loans, Wlth, and Yard. Interested borrowers should check these lenders’ announcements for further updates.
Ready, Set, Buy!
Understanding and keeping up with rate changes can significantly impact your home buying journey. Learn everything you need to know about buying property—from choosing the right property and home loan, to the purchasing process, and tips to save money and more
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First published on February 2025
If you have any questions or would like to discuss how these rate changes might affect your situation, please feel free to leave a comment below. Share your thoughts or ask anything about the home loan market in Australia.
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