Which Lenders Have Passed On The Rate Cut?

When the Reserve Bank of Australia (RBA) announces a cash-rate cut, borrowers naturally expect their lenders to follow suit. After all, a lower rate means lower interest repayments, which every borrower welcomes.

With the RBA recently lowering the cash rate from 4.35%pt to 4.10%pt on February 18, 2025, this cut, when passed on to customers, reflects a $91 reduction in monthly repayments on a $600,000 loan.

While some lenders move quickly to pass on rate cuts, others drag their feet or, worse, don’t pass on the cut at all. This raises the question: Which lenders have passed on the rate cut, and which ones are holding out?

We’ve compiled a list of lenders willing to implement the rate cut and provide reduced repayments. Plus, we’ll break down why some lenders hesitate and how you can opt for alternatives if your lender doesn’t pass on the cut. Let’s dive in.

Which Lenders Have Passed On The Rate Cut?

The table below shows which lenders have passed on the rate cut as of 1st April, 2025.

And even if lenders pass on the rate cut, it might not automatically adjust your repayments. Lenders typically provide customers with an option to maintain their current repayments or lower them to reflect the interest rate cut.

Please note that lender interest rates are subject to change without notice. The rates presented in the table are indicative and may be updated by lenders at their discretion.

*The information in the table is correct as of 1 April 2025 and might be subject to change.

What Does A Rate Cut Mean For Borrowers?

When interest rates drop, it’s great news for borrowers with variable-rate loans. Even a small rate cut, like the recent 0.25%pt, can lead to noticeable savings over time.

But how much, exactly? Well, here’s a table showing the potential savings on monthly repayments for different loan amounts when the interest rate is reduced by 0.25%pt.

While $40-$100 in savings a month may not seem much, it adds up over the years. Also, if you are saving this money, you can use it to get groceries, buy a few books, pay a week of gas and electricity bills, and maybe dine at a restaurant. Plus, you can always use the extra cash to pay off your loan faster.

If your lender has passed on the rate cut, you should see a difference in your repayments soon. For homeowners with a mortgage, a rate cut is a welcome relief. If you have a variable-rate home loan, your interest rate will probably drop, leading to lower monthly repayments.

On the other hand, if you’re on a fixed-rate mortgage, your repayments will stay the same until your term ends.

If you are a homeowner looking to sell, you might see higher demand in the market.

So, a rate cut is beneficial for you if you’re paying off a home loan, as it may translate into repayment savings.

Remember that lenders may not pass on the rate cut. You can always reach out to us if you need assistance liaising with the bank.

How Do Lenders Typically React To Rate Cuts?

When interest rates drop, lenders have two choices: pass on the cut or keep rates the same.

Some banks lower rates to stay competitive and attract more borrowers, while helping their existing customers save money and repay their loans faster.

However, not all lenders immediately pass on rate cuts. Some may delay or reduce the amount they cut, often to maintain their profit margins. They factor in funding costs, market competition, and their own financial stability before making a decision on the rate cut.

If your lender doesn’t lower your repayment automatically, you can check with your mortgage brokers to find out what’s up.

Read our blog to learn more about how lenders typically react to rate cuts.

How To Check If Your Lender Has Lowered Rates

Wondering if your lender has passed on the rate cut? Well, check your loan statements after the RBA’s announcement to see if there are differences.

You should also know that banks announce their rate changes publicly. So, be on the lookout for news from your lender.

If you get in touch with your mortgage broker, they can do the heavylifting for you. Brokers have access to multiple lenders and can quickly tell you whether your rate is competitive.

But if your lender hasn’t reduced rates, don’t worry, you still have an alternative.

What If Your Lender Hasn’t Passed On The Rate Cut?

If your lender isn’t budging, refinancing can be a smart move.

Refinancing allows you to switch to a new loan, either with your current lender or a different one, at a better rate. Again, even a small reduction in interest can lead to thousands of dollars in savings over time.

It is important to compare loan options carefully before you dive head-first into refinancing. Don’t just look at the interest rate. Also consider the fees, repayment flexibility and features.

Some lenders offer cashback deals or lower fees to attract new borrowers, which can make switching worthwhile. If refinancing isn’t right for you, try negotiating with your lender.

Banks value loyal customers, and they may be willing to lower your rate if you ask. If they won’t, it could be time to explore other lenders offering better deals.

Final Words

Rate cuts can save you money through reduced repayments. Even a 0.25%pt cut can lead to repayments that add up to thousands of dollars over time.

But not all lenders pass it on. Some lenders reduce the rates immediately, while others delay or refuse. To verify the rate cut, check your prior loan statements and lender updates. If your rate hasn’t dropped, negotiate with your bank or consider refinancing.

Switching your lenders could save you thousands during the lifetime of the loan. So, stay proactive, compare options, and make most of the RBA’s rate cut.