RBA cuts: These lenders have already slashed mortgage rates

Unless you've spent the week tucked under a rock, you'll know the Reserve Bank of Australia (RBA) cut the cash rate on Tuesday – rarely is there such excitement surrounding interest rates. 

But what you mightn't have realised is that some lenders moved almost instantly to slash home loan rates.

Two lenders cut their mortgage rates within minutes – even moments – of the RBA's announcement.

And another major bank followed just three days later, arguing every lender is capable of moving as quickly.

So, which lenders passed on the August cut at hyperspeed? And how low are mortgage rates after the RBA's third downward move? Let's dive in.

CommBank's Unloan slashes home loan rates immediately

Athena has long been the industry's fastest mover – and we'll get to its shifts this week in a moment.

However, another lender joined the race this month, and it comes with the backing of Australia's biggest bank.

CommBank's digital home loan lender Unloan took things up a gear this week, dropping its variable rates just minutes after the RBA announced the cash rate cut.

It slashed all its mortgage rates by the full 25 basis points, and now advertises rates as low as 5.24% p.a. (5.15% p.a. comparison rate*).

That's available for eligible homeowners or buyers with loan-to-value ratios (LVRs) of 80% or less.

For homeowners with LVRs of 80% to 90% and property investors with LVRs of up to 80%, the lender's lowest advertised rate is 5.44% p.a. (5.35% p.a. comparison rate*).

Property investors with LVRs of 80% to 90%, meanwhile, could realise a rate of 5.74% p.a. (5.65% p.a. comparison rate*).

You might have clocked that Unloan's comparison rates are lower than its headline rates. That's because the lender offers a unique discounting system, reducing a borrower's interest rate by 0.01% p.a. for each year they hold their mortgage.

Macquarie Bank cuts mortgage rates three days after RBA move

The nation's fifth largest bank was among the first off the starting line on Tuesday afternoon, announcing its intent to pass on the RBA's rate cut within minutes of the news dropping.

What's more, Macquarie declared it would pass on the savings to home loan borrowers just three days later – Friday, 15 August.

"When the RBA last cut the cash rate in May, we proved that the savings could be passed on to homeowners in just three days, instead of the industry average of 12 days," Macquarie head of personal banking Ben Perham said on Tuesday,

The advertised variable rates on the bank's Basic Home Loan product – which might be different to those realised by existing borrowers – now start at 5.39% p.a.:

Borrower	LVR	New interest rate	Comparison rate*
Owner-occupier	≤70	5.39%	5.41%
	≤80	5.44%	5.46%
	≤90	5.64%	5.66%
	≤95	6.44%	6.46%
Investor	≤70	5.49%	5.51%
	≤80	5.59%	5.61%
	≤90	6.45%	6.48%

Macquarie's Offset home loan product boasts those same headline interest rates.

However, due to the bank charging borrowers a fee to use an offset account, offset home loans advertise higher comparison rates.

Athena continues tradition of moving rates immediately after RBA announcement

Finally, as might have been expected, non-bank lender Athena cut mortgage rates for new and existing borrowers just moments after the RBA announced its move – as has been its practice for years.

The lender now advertises rates from 5.49% p.a. (5.49% p.a. comparison rate*) for owner-occupiers with LVRs of 50% or less or 5.59% p.a. (5.59% p.a. comparison rate*) for investors with LVRs of 50% or less.

In addition to matching RBA rate changes immediately, Athena promises existing borrowers will always receive the same rate as new borrowers, and will reduce borrowers' interest rate when they repay their loan to meet certain LVR bands.

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Important Information and Comparison Rate Warning

_{Image by Anastasiia T. on Unsplash}