19 Aussie lenders called out for not passing on interest rate cut as $76 million issue exposed
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
19 Aussie lenders called out for not passing on RBA interest rate cut as $76 million issue exposed
It’s been nearly a week since the RBA handed out the year’s second 0.25 per cent cut in the official cash rate. Many financial institutions moved within minutes of the board’s announcement, revealing to customers they would pass on the cut in full in the coming days. However, there’s a group made up of fairly small lenders who haven’t revealed if they’re providing mortgage relief or not to their homeowners. The Big Four banks — Commonwealth Bank, NAB, Westpac and ANZ — revealed within minutes. of each other they would passed on the rate cut. The RBA announced its interest rate cut decision on Tuesday, May 20 which brought the officialcash rate from 4.10 to 3.85 per cent.
More than a dozen lenders still haven’t revealed whether they’re passing on the Reserve Bank of Australia’s (RBA) interest rate cut. It’s been nearly a week since the RBA handed out the year’s second 0.25 per cent cut in the official cash rate.
Many financial institutions moved within minutes of the board’s announcement, revealing to customers they would pass on the cut in full in the coming days. However, there’s a group made up of fairly small lenders who haven’t revealed if they’re providing mortgage relief or not to their homeowners.
Historically, rate hikes are usually followed by every financial institution. But not everyone jumps on a cut.
RELATED
Who hasn’t announced an interest rate cut after RBA’s May decision?
Canstar data insights director Sally Tindall told Yahoo Finance customers can vote with their feet if their bank doesn’t pass on the rate cut.
“Banks know better than most just how tough it has been for these customers over the last couple of years as higher rates and a higher cost of living have put pressure on their household budgets,” she said.
Do you have a story? Email stew.perrie@yahooinc.com
“If you’re on a variable rate, it’s your right to pick up your mortgage and take it to a lender willing to offer you a better deal.”
At the time of writing, these are the lenders who haven’t yet announced if they’re passing on the RBA’s rate cut:
Bank of China
BankWAW
Broken Hill Bank
Cairns Bank
Dnister
Family First Credit Union
First Option Bank
Freedom Lend
La Trobe
Laboratories Credit Union
Reduce
South West Slopes Bank
The Capricornian
The Mac
Transport Mutual Credit Union
Warwick Credit Union
Well Money
Woolworths Team Bank
Yard
Everyone else has either already fired off mortgage relief or will hand it out in the coming days.
Athena and Unloan dished out their interest rate cuts on the same day as the RBA meeting.
Macquarie was the first major bank to pass it on in full on Friday, May 23.
How much banks earn by delaying rate cut
The RBA announced its interest rate cut decision on Tuesday, May 20 which brought the official cash rate from 4.10 per cent to 3.85 per cent.
The Big Four banks — Commonwealth Bank, NAB, ANZ, and Westpac — revealed within minutes of each other they would pass on the rate cut in full.