By STEPHEN JOHNSON FOR DAILY MAIL AUSTRALIA and HARRISON CHRISTIAN

Published: 03:52 GMT, 18 February 2025 | Updated: 04:38 GMT, 18 February 2025

Commonwealth Bank, NAB, Westpac, and ANZ have lowered their variable interest rates after the Reserve Bank cut rates for the first time in four years. 

Westpac cut its variable rate by 25 basis points to 6.19 per cent, as the first major bank to move. 

‘By reducing the standard variable home loan rate by 0.25 per cent per annum, customers will save an extra $90 per month, or $1,080 per year, based on a $500,000 home loan with principal and interest repayments,’ a Westpac spokesperson said.

‘Customers could use this as an opportunity to get ahead on their mortgage by putting the extra savings into their mortgage repayments, or into their offset account to help reduce the interest on their loan.’

The other big four banks all followed suit, all lowering their variable rate by 25 basis points effective on February 28.

‘We know that cash rate increases have been challenging for our home loan customers and they are looking forward to some relief,’ a Commonwealth Bank spokesperson said.

An ANZ spokesperson said: ‘The Reserve Bank’s decision to reduce the cash rate is an important step for our economy and will be welcome news for our borrower customers, providing some long-awaited relief from cost of living pressures.’

The average, owner-occupier variable rates offered by banks will fall to 6.07 per cent.

Commonwealth Bank, NAB, Westpac and ANZ have lowered their variable interest rates after the Reserve Bank cut rates for the first time in four years

The move marks the start of a much-anticipated monetary easing cycle following 13 rate rises since May 2022, which left interest rates at their highest level in 15 years. 

Mortgage holders have been struggling to keep up with high interest rates, with mortgage arrears rising steadily from the record low of one per cent in mid-2022. 

Treasurer Jim Chalmers declared the cut was ‘very welcome news for millions of Australians’ with an election due by May. 

‘This is the rate relief Australians need and deserve,’ he said.

‘It won’t solve every problem in our economy or in household budgets but it will help.’

Big Four banks cut variable rates 

ANZ: Down 25 basis points to 5.84 per cent

COMMONWEALTH BANK: Down 25 basis points to 5.9 per cent

WESTPAC: Down 25 basis points to 6.19 per cent

NAB: Down 25 basis points to 6.19 per cent

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Commonwealth Bank, NAB, ANZ and Westpac drop mortgage interest rates

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