The Reserve Bank of Australia handed down its second interest rate cut of the year, reducing the cash rate from 4.10 to 3.85 per cent.
For someone with the average mortgage of $660,000, the decision will lower monthly repayments by about $100 a month.
NAB was first to announce it will cut its variable mortgage rates, but like most banks, it’s going to wait a full 10 days before passing on the relief to its customers.
The bank will reduce its standard variable home loan interest rate by 0.25 per cent, effective May 30.
ANZ followed: its variable home loan rate will drop by 0.25 per cent, also passing on the Reserve Bank’s cut in full.
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Like NAB, though, it’s going to wait until the end of the month.
Commonwealth Bank has also passed on the rate cut to variable home loan customers, from May 30.
Westpac followed, saying it will cut variable home loan rates by 0.25 per cent.
It’s going to wait even longer than its counterparts to pass on the relief though – mortgage holders won’t benefit until June 3.
Despite the cut, the RBA said it remains cautious about the outlook for the economy.
