Athena drops mortgage rates immediately after RBA cash rate cut

The non-bank lender outpaced its competitors, not only by announcing its intention to pass on the Reserve Bank of Australia's (RBA) rate cut but also by making it effective within hours. 

Athena's new variable rates took effect for all customers on Tuesday afternoon, just after the RBA board delivered its first cash rate cut since 2020.

A selection of smaller lenders have also cut advertised rates in the wake of the decision while existing customers will have to show patience. 

The big four banks (among many others) also confirmed rate reductions, but borrowers will have to wait:

• CommBank, NAB, and ANZ will lower rates on 28 February
• Westpac customers won't see a rate change until 4 March

We're providing rolling coverage of banks and lenders' reactions to the RBA's cut here

While borrowers may welcome this rate cut, another one may be some time away.

The RBA board remains cautious about further policy easing, warning that reducing rates too quickly could stall disinflation.

“While today’s policy decision recognises the welcome progress on inflation, the board remains cautious on prospects for further policy easing,” the RBA board said in a statement.

“If monetary policy is eased too much too soon, disinflation could stall, and inflation would settle above the midpoint of the target range.”

Most major banks still predict the next RBA rate cut in May, except ANZ, which expects an August move.

Athena slashes variable home loans rates in immediate wake of RBA cut

Athena offers two variable rate home loan products, its Straight Up home loan and its Power Up home loan.

The Straight Up product is the simplest of the two and boasts the lowest rate while the Power Up product allows for multiple offset accounts and optional split interest rates.

The lender also drops the interest rate on its products automatically when a borrower's mortgage balance falls below particular loan-to-value ratio (LVR) thresholds.

Here are the advertised interest rates for owner-occupiers making principal and interest repayments on each product following the 25 basis point cut:

Product	LVR	New Rate	Comp Rate*
Straight Up	≤50%	5.99%	5.99%
	50-60%	6.04%	6.02%
	60-70%	6.09%	6.06%
	70-80%	6.14%	6.10%
Power Up	≤50%	6.14%	6.14%
	50-60%	6.19%	6.17%
	60-70%	6.24%	6.21%
	70-80%	6.29%	6.25%

And investors weren't left out.

Here are the new advertised rates offered to property investors:

Product	Rate Type	LVR	New Rate	Comp Rate*
Straight Up Investor	IO	≤50%	6.29%	6.17%
		50-60%	6.29%	6.19%
		60-70%	6.34%	6.23%
		70-80%	6.39%	6.29%
	P&I	≤50%	6.09%	6.09%
		50-60%	6.14%	6.12%
		60-70%	6.19%	6.16%
		70-80%	6.29%	6.22%
Power Up Investor	IO	≤50%	6.44%	6.32%
		50-60%	6.44%	6.34%
		60-70%	6.49%	6.38%
		70-80%	6.54%	6.44%
	P&I	≤50%	6.24%	6.24%
		50-60%	6.29%	6.27%
		60-70%	6.34%	6.31%
		70-80%	6.44%	6.37%

Horizon Bank drops advertised rates following RBA cut

Two more lenders announced new rates in the wake of the RBA's move, though their existing customers will need to wait to realise savings.

Horizon Bank will pass on the cut to current customers on 1 March, but for those considering the bank, here are the new advertised discounted variable rates on its Home Sweet Home Loan product:

Product	LVR	New Rate	Comp Rate*
Home Sweet Home Loan Owner-occupier Principal & Interest	≤70%	5.64%	6.34%
	>70%	5.79%	6.49%

Horizon Bank also shaved between five and 25 basis points from many of its fixed rate products this week.

G&C Mutual lowers advertised variable rates by up to 90bp

Joining in on the cutting action was customer-owned bank dedicated to emergency service and healthcare workers, G&C Mutual Bank.

While existing customers of the bank will wait until 1 March to realise a rate cut, new owner-occupier borrowers could take advantage of these variable rates today:

Product Name	New Rate	Comp Rate*
Essential Worker Home Loan	5.70% (-25bp)	5.75%
First Home Buyer Loan	5.74% (-90bp)	6.01%
Choice Home Loan	6.49% (-25bp)	6.54%
Momentum Home Loan (Refinance offer) LVR ≤60%	5.74% (-50bp)	5.79%
Momentum Home Loan (Refinance offer) LVR 60-80%	5.84% (-50bp)	5.89%
Momentum Home Loan (Refinance offer) LVR 80-95%	5.94% (-50bp)	5.99%

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