ANZ cut its rates by 0.18 percentage points while Westpac is handing on 0.2 percentage points – though those with interest-only mortgages are receiving a cut of 0.35 percentage points.
ANZ pointed to the performance of its business, market conditions and the impact on its customers, including depositors, as reasons for not passing on the cut in full.
The RBA governor, Philip Lowe, said in a speech following the rate cut that following a recent fall in banks’ wholesale funding and deposit costs, there was no reason why they could pass on the cut in full.
Smaller lenders who have not handed on the full cut include Virgin Money, Suncorp Bank, Heritage Bank, Bendigo Bank, Adelaide Bank and Westpac’s subsidiaries – BankSA, Bank of Melbourne and St George Bank.
However, some of these already offered among the lowest mortgage rates in the market prior to the rate reduction. Despite not passing on the full cut, they still are among the cheapest.
According to comparison site RateCity, those who will have particularly low rates on their variable-mortgages mortgages after the cuts include Reduce Homes Loans (3.19 per cent), Homestar Finance (3.24 per cent), Athena Home Loans and NAB-owned UBank (3.34 per cent), Bank Australia (3.44 per cent), and AMP Bank and Suncorp Bank (3.49 per cent).
People who previously considered themselves to be on a competitive mortgage interest rate may no longer have the best deal. Check you rate and, if not, shop around for an alternative.