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Rate cuts continue, not all pass on full saving

05 July 2019 2 minute readShare
Macquarie Bank and Bankwest buldings

Macquarie and Bankwest are among several more lenders to announce mortgage rate cuts in response to the Reserve Bank’s second consecutive adjustment, but many are only passing on part of the saving.

On Tuesday (2 July), the Reserve Bank of Australia (RBA) lowered the official cash rate to a new record low of 1 per cent, marking the second month in a row in which the cash rate had moved – after nearly three years of inertia.

The adjustment provoked a prompt response from some lenders, including the big four, passing on at least part of the cut.

Macquarie Bank, Bankwest, HSBC, Firstmac, Greater Bank, Loans.com.au, RACQ, RAMS, Reduce and Keystart are the latest credit providers to lower their mortgage rates.

Macquarie Bank

Despite passing on the full 25 bps following the RBA’s June adjustment, Macquarie has this time passed on a 20 bps reduction to its mortgage customers.
From 18 July, Macquarie’s home loan rates will start from 3.24 per cent.


Commonwealth Bank subsidiary Bankwest has reduced its rates by 19 bps across both its owner-occupied and investment home loan products, effective from 23 July.

Following the change, Bankwest’s mortgages will start from 3.70 per cent.


The bank has not passed on the full 25bps, dropping rates by 20bps for both owner-occupiers and investors.

From 22 July, HSBC's mortgage rates will start from 3.27 per cent.

A HSBC spokesperson commented:"In making this decision, we have carefully considered the needs of both our home loans and savings customers. With one of the lowest variable home loan rates available in the market, we are continuing to focus on offering homebuyers great value and exceptional service.

“With rates reaching historically low levels, we encourage new and prospective customers to speak with us in branch, on the phone or via one of our broker partners about their home buying or refinancing ambitions.”


Non-bank lender Firstmac has passed on the full 25 bps to its mortgage customers, after passing only 20 bps following the June adjustment.

From 26 July, Firstmac’s home loan rates will start from 3.53 per cent.

Greater Bank

Greater Bank has also reduced its rates by up to 25 bps, effective from 28 July.

Following the changes, the lender’s rates will start from 3.23 per cent.


The non-bank lender has reduced its rates by 25 bps, after only passing 20bps following the June adjustment from the RBA.

From 26 July, the lender’s rates will start from 3.03 per cent.


Mutual lender RACQ has again cut mortgage rates by 25 bps, effective from 8 July.

Once the changes come into effect, the lender’s rates will start from 3.19 per cent.


The credit provider has again reduced its rates by 20 bps, with changes effective from 16 July.

Its home loan rates will start from 4.01 per cent once the changes come into effect.

Reduce Home Loans

The lender has slashed its rate by up to 22 bps, with changes effective from 2 July.

Reduce’s home loan rates now start from 2.89 per cent.

Keystart Home Loans

Western Australia-based lender Keystart has cut its rates by 21 bps, effective from 23 July.

The high-lender’s rates now start from 4.94 per cent.

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Rate cuts continue, not all pass on full saving
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Adam Zuchetti is the former editor of MyBusiness and a senior freelance media professional, specialising in the fields of business, personal finance and property. In 2020, he also embarked on his own business journey – inspired in part by the entrepreneurs and founders he had met through his journalistic work – with the launch of customised pet gifting and subscription service Paws N’ All.

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