RBA Rate Cut - What happens next?

May 2025 Rate Cut: What It Means for You and Your Repayments

On May 20th, the RBA cut the official cash rate by 0.25%, bringing it down from 4.10% to 3.85%.

But your home loan interest rate is set by your lender, not the RBA. While most lenders do pass on the full cut, how and when they do it varies—and they’re not always proactive about letting you know.

When Will Lenders Pass On the Rate Cut?

Following the 0.25% cash rate reduction on May 20th, here’s when various lenders are implementing the change:

• Athena – Already effective (20 May)

• Macquarie Bank – 23 May

• Gateway Bank – 27 May

• Bank First – 29 May

• ubank – 29 May

• ANZ – 30 May

• Commonwealth Bank – 30 May

• NAB – 30 May

• Bankwest – 30 May

• Heritage Bank – 30 May

• Newcastle Permanent – 30 May

• People’s Choice – 30 May

• Teachers Mutual Bank – 1 June

• AMP – 2 June

• Bank Australia – 2 June

• HSBC – 2 June

• Westpac – 3 June

• St George – 3 June

• Bank of Melbourne – 3 June

• Bank of Sydney – 3 June

• Australian Military Bank – 3 June

• Beyond Bank – 3 June

• Great Southern Bank – 3 June

• ING – 3 June

• Firstmac – 3 June

• Adelaide Bank – 6 June

• Bank of Queensland – 6 June

• Bendigo Bank – 6 June

• Virgin Money – 6 June

• Auswide – 5 June

• MyState Bank – 5 June

• Pepper Money – 5 June

• RedZed – 5 June

• ME Bank – 7 June

• P&N Bank – 10 June

• Bluestone – 11 June

• Resimac – 11 June

• Granite Home Loans – 16 June

Will My Repayments Reduce Automatically?

Some lenders reduce your repayments automatically. Others keep them the same unless you request a change.

Repayments will reduce automatically:

• Westpac

• St George

• ING

• Bankwest

• Macquarie

• ubank

• ME Bank

• Bank of Melbourne

Repayments will remain unchanged unless requested:

• ANZ

• Commonwealth Bank

• NAB

• People’s Choice

Why This Matters

Every day a lender delays passing on a rate cut, they continue collecting the higher interest. The sooner your rate drops, the more you save.

Staying on top of your home loan—rate, structure, and repayments—helps make sure it's still the right fit for you.

What You Can Do

✔️ Check if your rate has dropped
✔️ Ask your lender about repayments
✔️ Keep repayments the same to get ahead
✔️ Reach out if you’d like help reviewing your loan

If you'd like a second opinion on your current loan or want to know if you're getting the benefit of the rate cut, feel free to get in touch.

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