Current Interest rates in Australia

RBA Cash Rate Target: 4.10%

Brooke Cooper

RBA cash rate cut: All mortgage borrowers need to know

The Reserve Bank of Australia (RBA) has handed down its first rate cut in years, and Your Mortgage is keeping you up to date on lenders' reactions and rate changes.

The RBA board announced a 25 basis point cut on Tuesday 18 February, bringing the cash rate to 4.10%.

Learn more about the RBA's decision: RBA cuts cash rate to 4.10% in first reduction since 2020

Attention is now on banks and lenders as borrowers wait to learn if their home loan repayments will ease.

Your Mortgage will provide live updates to help you navigate the changing home loan landscape. If your lender's response isn't listed on this page, it may be because it hasn't offered its reaction yet. 

RBA Cash Rate News & Guides

CommBank, NAB, Westpac & ANZ: Big 4 banks react to cash rate cut

In Australia, nearly 80% of all home loan debt held by banks comes from the Big Four or their subsidiaries.

Thus, their response to the rate cut will have a significant impact on millions of borrowers.

Here's how each of the big four banks is responding so far:

CommBank has announced it will cut its variable rates by the full 25 basis points shortly after the RBA's Tuesday announcement.

Changes will be effective as of 28 February.

“We know that cash rate increases have been challenging for our home loan customers and they are looking forward to some relief," CommBank group executive of retail banking services Angus Sullivan said.

Find out more about CommBank's move.

NAB will cut its standard variable home loan interest rate by 25 basis points as of 28 February. 

The bank announced it's intent to pass on the RBA's cut in full shortly after the central bank's move was announced on Tuesday.

“The extended period of high interest rates has placed real strain on household budgets and this rate reduction will help to ease the financial burden," NAB group executive of personal banking Ana Marinkovic said.

Find out more about NAB's move

Westpac announced it will decrease variable home loan interest rates by the full 25 basis points for new and existing customers shortly following the RBA's Tuesday announcement.

Changes will be effective from 4 March.

“Today’s decision will be welcome news for mortgage customers," Westpac chief executive of consumer banking Jason Yetton said.

"By reducing the standard variable home loan rate by 0.25 per cent per annum, customers will save an extra $90 per month, or $1,080 per year, based on a $500,000 home loan with principal and interest repayments.”

Find out more about Westpac's move.

ANZ announced it will reduce variable home loan interest rates by the full 25 basis points shortly after the RBA announced Tuesday's cash rate cut.

The change will be effective as of 28 February. 

“The Reserve Bank’s decision to reduce the cash rate is an important step for our economy and will be welcome news for our borrower customers, providing some long-awaited relief from cost of living pressures," ANZ group executive of Australian retail Maile Carnegie said.

Find out more about ANZ's move.

Major banks & lenders: Reactions from other home loan lenders

While the big four banks collectively hold the wealth of Australia's home loans, other major brands often offer more competitive mortgage deals.

For savvy homeowners who haven't borrowed through one of the quadtuplet, here are how other major banks and lenders are reacting to the cash rate cut:

Firstmac Interest Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home loan interest rates
Firstmac will pass on the RBA's cut from 4 March

Macquarie Interest Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Variable home loan reference rates
Macquarie will pass on the RBA's cut from 28 February
Find out more about Macquarie's move.

ubank Interest Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Neat and Flex variable home loan rates
ubank will pass on the RBA's cut from 27 February
Note: Your Mortgage has heard some ubank customers won't receive their rate cut until 17 March

Unloan Interest Rate Cut

Rate cut -25bp
Announced 18 February
Applies to All advertised interest rates
Unloan will pass on the RBA's cut from 21 February

loans.com.au Interest Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home loan interest rates
loans.com.au will pass on the RBA's cut from 4 March

Other banks and lenders cutting interest rates

Below is a list of lenders responding to the RBA's February rate cut.

This page was last updated: 5:03pm AEDT, 19 February 2025

Banks and Lenders

AMP Bank Arab Bank Adelaide Bank
Aussie Australian
Military
Bank
Australian
Unity
Athena Auswide
Bank
BOQ
Bank
Australia
Bank
First
BankSA
Bank of
Melbourne
Bank of
Sydney
Bank
of Us
BankVic Bankwest Unity
Bank
Bendigo
Bank
Beyond
Bank
Community
First CU
Defence
Bank
EasyStreet Firefighters
Mutual
Bank
Freedom
Lend
G&C
Mutual Bank
Gateway
Bank
Geelong
Bank
Greater
Bank
Heritage
Bank
Health
Professionals
Bank
Homeloans-
.com.au
Horizon
Bank
HSBC IMB Bank ING
La Trobe
Financial
Liberty ME Bank
Mortgage
House
MyState
Bank
Newcastle
Permanent
Northern
Inland CU
P&N Bank People’s
Choice CU
Pepper
Money
Police
Bank
QBank
Qudos Bank RACQ
Bank
Reduce
Home
Loans
Regional
Australia
Bank
SWSBank St George
Summer-
land
Suncorp Teachers
Mutual
Bank
The Mutual
Bank
Tiimely
Home
UniBank
Virgin
Money

Explanatory notes:

  • Understanding basis points: 1 basis point = 0.01% p.a.
  • Eligibility: Lowest rates are only included if they are new and are currently available.

AMP Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Arab Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Adelaide Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Aussie Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Australian Military Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Australian Unity Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Athena Reaction to RBA Rate Cut

Rate cut -25 bp
Announced 18 February
Applies to All variable rate customers
Other info Athena passed on the RBA's rate cut in full immediately.
New advertised variable rates start at 5.99% p.a. 

Auswide Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Existing home loans
Other info Effective 28 February

BOQ Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home interest rates
Other info Effective from 7 March

Bank Australia Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Variable home loan rates
Other info
Bank Australia will pass on the RBA's cut from 4 March

Bank First Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 Febuary
Applies to Variable rate home loans
Other info Effective from 27 February

BankSA Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to New and existing variable rate home loans
Other info BankSA will pass on the RBA's cut from 4 March

Bank of Melbourne Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to New and existing variable rate home loans
Other info Bank of Melbourne will pass on the RBA's cut from 4 March

Bank of Sydney Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Bank of Us Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

BankVic Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Variable rate home loans
Other info Effective from 4 March

Bankwest Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to New and existing variable rate customers
Other info Bankwest will pass on the RBA's cut from 28 February

Unity Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable rate residential home and investment home loans
Other info Effective from 1 March
Unity Bank will merge with G&C Mutual on 7 March

Bendigo Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Beyond Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable owner-occupier and investor home loans
Other info Effective from 4 March

Community First Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Defence Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Variable rate home loans
Other info Defence Bank will pass on the RBA's cut from 27 February

EasyStreet Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Firefighters Mutual Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home loan rates
Other info Effective from 28 February

Freedom Lend Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

G&C Mutual Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable rate residential home and investment home loans
Other info Effective from 1 March
G&C Mutual will merge with Unity Bank on 7 March

Gateway Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home loan and reverse mortgage rates
Other info Effective from 25 February

Geelong Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Greater Bank Reaction to RBA Rate Cut

Rate cut -0.25 bp
Announced 18 February
Applies to Variable rate home loans
Other info Effective from 7 March

Heritage Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Health Professionals Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home loan rates
Other info Effective from 28 February

Homeloans.com.au Reaction to RBA Rate Cut

Rate cut -25 bp
Announced 18 February
Applies to Variable rate home loans
Other info Effective from 5 March

Horizon Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

HSBC Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home loan interest rates
Other info Effective from 10 March

IMB Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home loan rates
Other info Effective from 4 March

ING Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Existing variable rate home loan customers
Other info ING will pass on the RBA's cut from 4 March

Illawarra Credit Union Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

La Trobe Financial Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Liberty Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

ME Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home interest rates
Other info Effective from 8 March

Mortgage House Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

MyState Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Newcastle Permanent Reaction to RBA Rate Cut

Rate cut -0.25 bp
Announced 18 February
Applies to Variable rate home loans
Other info Effective from 7 March

Northern Inland CU Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

P&N Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

People’s Choice CU Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Pepper Money Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Existing residential, commercial, construction, and SMSF loans 
Other info Pepper Money will pass on the RBA's cut from 5 March

Police Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

QBank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Qudos Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

RACQ Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Reduce Home Loans Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Regional Australia Bank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

St George Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to New and existing variable rate home loans
Other info St George will pass on the RBA's cut from 4 March

Suncorp Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Variable home loan rates
Other info Suncorp will pass on the RBA's cut from 28 February

Teachers Mutual Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home loan rates
Other info Effective from 28 February

The Mutual Bank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 18 February
Applies to Owner-occupier and investment home loan rates
Other info
The Mutual will pass on the RBA's cut from 4 March

Tiimely Home Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

UniBank Reaction to RBA Rate Cut

Rate cut -25bp
Announced 19 February
Applies to Variable home loan rates
Other info Effective from 28 February

Virgin Money Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

Summerland Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

SWSBank Reaction to RBA Rate Cut

Rate cut Pending
Announced Pending
Applies to Pending
Other info Pending

What is the RBA cash rate?

The Reserve Bank of Australia’s (RBA’s) overnight cash rate target (often simply called the cash rate) influences many things. Though, home loan holders are likely most concerned with how it impacts interest rates.

The RBA cash rate determines how much lenders need to pay to borrow money. The higher the cash rate, the more expensive it is for a bank to operate day-to-day.

Therefore, when the cash rate is high, so to will be the interest rates that banks and lenders charge to borrowers and provide to depositors. After all, banks and lenders want to protect their bottom line, just like the rest of us.

As of 18 February, the cash rate is 4.10%, having been cut from its recent high of 4.35%.

The below chart shows how the cash rate has moved in recent times:

Why do we need a cash rate?

The cash rate serves as a crucial tool in managing the economy.

By adjusting the cash rate, the RBA can influence economic activity, control inflation, and ensure financial stability.

When the economy is overheating and inflation – that is, the price of goods and services – is rising too quickly, the RBA might increase the cash rate to make borrowing more expensive. That, in turn, can be expected to cool down spending and investment.

On the other hand, when the economy is sluggish and growth is subdued, a lower cash rate can stimulate it by making borrowing cheaper and encouraging spending.

Essentially, the cash rate acts as a lever to balance economic growth and maintain a healthy financial system.

However, the cash rate is not without its faults. It is often described as a 'blunt tool' because changes to the rate ripple across the entire economy, impacting far more than just the intended targets.

Why does the RBA cash rate impact home loan interest rates?

To explain how the RBA cash rate influences home loan interest rates, we need to start with how banks manage their money.

Regulations demand that banks maintain a certain level of liquidity at the end of each day. This means they must have a certain amount of cash on hand.

Cash deposits – such as those in savings accounts and term deposits – count towards a bank’s liquidity, while funds lent to borrowers reduce its liquidity.

If a bank disburses more funds through loans and deposit withdrawals within a single day than it receives in new deposits and loan repayments, it might struggle to meet its liquidity requirements.

That’s when the cash rate comes in. A bank can choose to borrow the necessary funds overnight to meet its liquidity needs, and it will be charged the overnight cash rate set by the RBA.

For that reason, when the cash rate is high, so is the cost of doing business for banks. When the cost of doing business is high, banks increase interest rates charged to borrowers to recoup their higher costs.

However, the cash rate isn’t the only factor that impacts home loan interest rates. Sometimes, lenders will adjust their home loan interest rates even if there has been no change in the cash rate. These ‘out of cycle’ home loan rate changes happen frequently.

Your Mortgage is one of Australia’s leading home loan information and comparison websites.

Our mission is to educate Australians about all things home loans through fresh, engaging, and accurate news, guides, and exclusive research. We aim to empower homeowners, aspiring buyers, and property investors to better understand – and improve – their financial position.

Editor of Your Mortgage

Brooke Cooper is the Editor of Your Mortgage, having joined the team in 2023 after spending years analysing the Australian finance and wealth landscape at the Motley Fool. She leads a dedicated team of journalists, all passionate about educating current and aspiring homeowners on everything money and mortgages.

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