Aussie homeowners are rejoicing following the Reserve Bank decision to drop the cash rate 0.25% at February’s meeting.
The move could reduce monthly repayments on an average loan of $642,000, by $104 – or around $1,248 over the course of the year according to analysis by Compare the Market.
But whether or not customers feel the relief will depend on whether the banks choose to pass the discount on to their variable customers.
Compare the Market Economic Director David Koch urged homeowners to keep an eye on their interest rate.
“Your loyalty could be costing you. It simply doesn’t make sense to be paying a cent more than you need to,” Mr Koch said.
“If you’re planning on haggling with your current lender, ensure you know what their current lowest advertised rate is. Often, the banks are going to reserve the best offers for new customers.”
Big four bank moves
ANZ
Rate move: -0.25%
Customers set to benefit: variable rate home loan customers
Effective from: 28 February 2025
Commonwealth Bank
Rate move: -0.25%
Customers set to benefit: variable customers
Effective from: 28 February 2025
NAB
Rate move: –0.25%
Customers set to benefit: standard variable home loan customers
Effective from: 28 February 2025
Westpac
Rate move: -0.25%
Customers set to benefit: new and existing variable customers
Effective from: 4 March 2025
Other lender moves
AMP
Rate move: 0.25%
Customers set to benefit: all variable rate home loan customers
Effective from: 3 March 2025
Bank of Melbourne
Rate move: -0.25%
Customers set to benefit: variable home loan interest rate customers
Effective from: 4 March 2025
Bank SA
Rate move: -0.25%
Customers set to benefit: variable home loan interest rate customers
Effective from: 4 March 2025
Bankwest
Rate move: -0.25%
Customers affected: new and existing variable home loan customers
Effective from: 28 February 2025
Bendigo Bank
Rate move: TBA
Customers set to benefit: TBA
Effective from:
HSBC
Rate move: -0.25%
Customers set to benefit: variable home loan customers
Effective from: 10 March 2025
ING
Rate move: -0.25%
Customers set to benefit: existing variable customers
Effective from: 4 March 2025
Macquarie
Rate move: -0.25%
Customers set to benefit: variable home loan customers
Effective from: 28 February
ME
Rate move: -0.25%
Customers set to benefit: variable home loan customers
Effective from: 8 March 2025
Pepper Money
Rate move: -0.25%
Customers set to benefit: variable interest rate for existing residential, commercial, construction and SMSF loans
Effective from: 5 March 2025
St. George
Rate move: -0.25%
Customers set to benefit: variable home loan interest rate customers
Effective from: 4 March 2025
Suncorp
Rate move: -0.25%
Customers set to benefit: variable home loan interest rate customers
Effective from: 28 February 2025
Ubank
Rate move: -0.25%
Customers set to benefit: Neat and Flex variable home loan rate customers
Effective from: 27 February 2025
All banks and lenders may not be included in this list. We’ve included the lenders on our panel.
The information on this page is general only – check with your lender for further details on their interest changes and how you might be affected.
This page was last updated 20 February 2025.
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