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What a RBA Rate Cut Could Mean For You

Could you be paying less on your home loan? Find out how much you could save!

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Will Your Bank Pass on the Full RBA Rate Cut?

While the Reserve Bank of Australia (RBA) is expected to cut the cash rate by 0.25% on February 18, there's no guarantee your bank will pass the full discount on to you. In fact, history tells us that lenders often retain part of the cut to protect their profit margins.

  • Banks are not obligated to pass on the full RBA cut to customers.
  • There is no requirement for lenders to notify you when they drop home loan rates.
  • Lenders do not automatically lower your automatic repayments, in line with your new rate.
  • Lenders may delay reductions or apply cuts selectively to different loan products.

So how do I find out if my rate has lowered?

The only way to know if you’re benefiting is to:

  • Check your rate manually via online banking.
  • Call your lender.

Banks rely on customer apathy to maintain higher profits. According to ASIC research, homeowners who have had their mortgage with the same lender for three or more years are, on average, paying 0.58% more than someone who has recently taken out a loan.


Why a Rate Cut Doesn't Always Mean a Competitive Loan

A lower interest rate doesn’t necessarily mean you have the best deal. Even if your bank passes on the full 0.25% cut, your mortgage rate could still be significantly higher than the market average.

  • If your current home loan rate is 0.3% above the average, even after a 0.25% RBA cut, your rate may still be uncompetitive.
  • Over a 30-year loan, even a small 0.3% difference could cost you tens of thousands of dollars.

How Refinancing Can Save You Thousands

If your bank isn’t offering you the best rate, refinancing could be your smartest financial move. By switching to a more competitive lender, you could slash your repayments and free up cash for more important things.

  • Banks compete harder for new customers – you can leverage better deals.
  • You could reduce your repayments instantly – more cash for savings, investments, or lifestyle upgrades.
  • Pay off your home loan faster – keeping repayments the same on a lower rate means more of your money goes to the principal.

According to ASIC research, borrowers with the same lender for 3+ years pay, on average, 0.58% more than a newly settled loan. A 0.58% rate difference on a $500,000 mortgage can cost you over $2,900 per year in extra interest payments.


What a Rate Cut Means for You

This simple tool allows you to see how rate movements impact your mortgage repayments.



15 Years of Cash Rate Movement


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Which banks have passed on the RBA rate cut?

Find out if your bank is lowering their home loan rates, and when it will take effect.

Adelaide Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 7 March

ANZ Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February

AMP Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February for new customers, 3 March for existing customers

Athena Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 18 February
  • Other info: Athena was the first lender to officially drop its rates, the 0.25% cut effective immediately to all variable rate customers.

Australian Military Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans, including DHOAS
  • Effective date: 4 March

Australian Unity Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 3 March

Auswide Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February

Bank Australia Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 04 March

Bank First Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 27 February

Bank of Melbourne Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 04 March

Bank of Queensland Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 07 March

BankSA Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 04 March

Bank of Sydney Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 12 March

Bank of Us Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 1 March

Bankwest Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February

BankVic Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 4 March

BCU Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 5 March

Bendigo Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 7 March

Beyond Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 4 March

Commonwealth Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February

Credit Union SA Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 5 March

Defence Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 27 February

Firstmac Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 4 March

G&C Mutual Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 01 March

Gateway Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 25 February

Greater Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 07 March

Great Southern Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 04 March

Heritage Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans, 2&3 year fixed rate home loans
  • Effective date: 04 March

Homeloans.com.au Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 5 March

Homestar Finance Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February

Horizon Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 1 March

HSBC Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 10 March

Hume Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 3 March

IMB Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 4 March

ING Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 4 March

loans.com.au Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 4 March

Macquarie Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February

ME Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 8 March

MOVE Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 1 March

MyState Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 4 March

NAB Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February

Newcastle Permanent Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 07 March

P&N Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 5 March

People's Choice Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans, 2&3 year fixed rate home loans
  • Effective date: 4 March

Pepper Money Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 5 March

QBank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 11 March

Qudos Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 27 February

RACQ Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 4 March

Resimac Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 04 March

St George Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 04 March

State Custodians Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 05 March

Summerland Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 25 February for new customers, 4 March for existing customers

Suncorp Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February

Teachers Mutual Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February
  • Other info: This means Firefighters Mutual Bank, Health Professionals Bank, and UniBank will also be dropping rates on 28 February.

The Mutual Bank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 04 March

Tiimely Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 7 March

Ubank Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 27 February
  • Other info: Some UBank customers have been informed their rate will not drop until 17 March.

Unloan Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 21 February

Virgin Money Interest Rate Cut

  • Announced that they will not be passing on a rate cut to borrowers.

Westpac Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 4 March

Yellow Brick Road Interest Rate Cut

  • Rate cut: 0.25%
  • Applies to: Variable-rate home loans
  • Effective date: 28 February
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Lenders who have not announced a rate cut

  • Reduce Home Loans interest rate cut (pending)
  • Well home loans interest rate cut (pending)
  • Yard interest rate cut (pending)
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Disclaimer: The opinions expressed in this article are strictly for general informational and entertainment purposes only and should not be taken as financial advice or recommendations. While every effort is made to ensure the listed offers are accurate, we make no guarantee regarding their accuracy, completeness, or availability.