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.
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
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 |
|
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.