Following the RBA's 25 basis point (bps) cut to the official cash rate yesterday afternoon, each of Australia's big four banks announced they'd be passing the reduction through to their customers in full before the day's end.
Currently, NAB has the lowest standard variable rate of the major banks - as it has since September 2018.
Other non-major lenders including Macquarie, Suncorp, Newcastle Permanent and Athena Home Loans have also joined in passing the full rate cut to their mortgage holders.
ANZ will decrease its standard variable rates by between 0.25% to 0.35%, effective from 13 March 2020.
“The decision by the Reserve Bank to reduce the cash rate to historically low levels highlights the significant impact the outbreak of COVID-19 is already having on the global economy," said Mark Hand, ANZ group executive Australia retail and commercial.
“While there were a range of factors considered in making this decision, ANZ is prepared to play its role in supporting both our customers and the broader economy through this period of uncertainty. Customers wanting to increase the money in their pocket each month can contact us to decrease their monthly minimum payments."
For business customers experiencing hardship due to coronavirus, ANZ is offering financial support through suspending interest repayments, providing early access to term deposits without incurring break fees as well as providing access to additional credit.
NAB
In addition to cutting 25bps across its variable home loan products, NAB has also extended its reductions to its variable small business options loan and business overdraft facilities, all of which goes into effect on 13 March.
“In making these decisions we have had to consider the unprecedented challenges of the low interest-rate environment and impacts of the bushfires and coronavirus outbreak on our customers and the broader economy,” said NAB chief customer officer for consumer banking, Mike Baird.
“We understand that for our customers the extra money saved on their mortgages can be used in different ways. Some choose to pay down their loans faster while others are choosing to reduce monthly repayments to help with the household budget. Our role is to offer our customers choice.
“NAB has a track record of seeing our customers through difficult economic conditions and we will continue to lend and support our customers.”
The bank has cumulatively delivered the largest standard variable home loan rate cuts of the big four over the past 12 months, and maintained the lowest for over a year.
CBA's sweeping 0.25% reduction of its variable rates goes into effect last of the majors, on 24 March.
On that date:
“In responding to this latest official interest rate cut, we have examined the important role we play in supporting the Australian economy and the unique set of circumstances facing the country," said Angus Sullivan, group executive of retail banking services.
“We also recognise the importance of managing the business sustainably for the long term and balancing the needs of borrowers and depositors. We will continue to review our pricing and make further adjustments as required," said Sullivan.
“Today’s announcement means our SVR for owner occupied customers, with principal and Interest repayments, will be one of the lowest on record.”
Westpac will decrease its variable interest rates by 0.25% for home loan customers and small business cash-based loans and overdrafts, effective 17 March.
“We recognise COVID-19 will have a direct impact on our nation’s economy and we want to provide additional support to our small business and home loan customers at this unprecedented time,” said David Lindberg, Westpac chief executive of consumer.
“Our home loan customers can also take advantage of our lowest variable home loan rates in 50 years to help purchase their next home, or pay more off their mortgage faster.
“While this is the right decision, pricing changes are increasingly challenging as the cash rate heads towards zero. We will continue to review our rates on a case-by-case basis taking into account the diverse range of stakeholders and factors which influence the cost of funding."
This story has been updated to reflect the most recent information
