UPDATEWestpac will announce its final rate change announcements this week after the announcement by the central bank earlier in the week. It will cut its owner-occupier rates by just 20 basis point, but will offer a larger rate discount of 0.35% for investors who are interested in a SVR home mortgage that is interest-only. Find out more.

After the Reserve Bank of Australia’s move of reducing the official cash rates and the appeal of Josh Frydenberg for the rate reduction to be implemented, three of Australia’s four largest banks announced changes to home-loan rates.

The banks – save for Westpac, which has yet to make a statement on the rate cut – decided to slash their standard variable rates (SVR). NAB, Commonwealth Bank and ANZ announced that they would not accept the 25 basis point rate cut. However, ANZ will only reduce rates by 0.18%.

Mark Hand, ANZ’s retail and commercial executive stated that the bank did not reduce the rate in full due to a variety of factors, including market conditions and business performance as well as possible impacts on customers and depositors.

“We know that some home-loan applicants will be disappointed. This decision was made to balance increased management costs with the desire to offer customers competitive lending and deposit rates. He stated that home-loan customers looking for certainty may lock in our historically low fixed rates for our two- and three-year terms.

Angus Sullivan from Commonwealth Bank, an executive in retail banking services, said that the bank would lower interest rates for SVR home loans by up to 0.25%.

He stated that they had reviewed the RBA rate determination, the current funding climate, and how they would meet regulatory commitments, capital requirements, and community expectations.

Variable-rate reduction would see owners of $400,000 home loans pay $62 less each month in principal or interest.

Talk to an expert and find out how much you could save each monthly 

Sullivan encouraged Commonwealth Bank borrowers to talk with their lending specialist about how recent rate increases could impact their repayments.

He explained that “our home loan specialists are available free of charge to review our customers options for home loans and ensure that their arrangements stay appropriate for them.”

NAB also reduced its SVR home loan rate by 25 basis points. Mike Baird serves as chief customer officer for NAB’s consumer banking. The bank’s variable rates are now at their lowest point in more than 40 years.

We believe that customers should have their rates reduced. This reflects our commitment building trust and rewarding customers. NAB is committed supporting home-loan customer and being a trust bank throughout the loan’s lifetime,” he stated.

Below is a table displaying the current standard variable rate for four of Australia’s largest banks. NAB and ANZ will see changes to their SVR home loans rates on June 14-18 and 25, respectively. Westpac, ANZ and ANZ will not be affected. CBA will be able to see them on June 25, 25, and 26. Notably, out of the four major banks NAB (and CBA), only NAB (and CBA), decided to pass the entire rate reduction on to their borrowers.

Big four bank’s changes to Standard Variable Rates (SVR)






Owner-Occupier Principal & Interest





Only Owner-Occupier interest





Investor Principal & Interest





Investor Interest Only