What May's 2025 Rate Cut Could Mean For You
The RBA has cut the cash rate by 0.25% this May, dropping it from 4.10% to 3.85% p.a.
Some lenders are quick to pass it on. Others take weeks. And a few might not pass it on at all.
Craggle is tracking lender announcements in real time so you can see if — and when — your bank is passing on the savings to variable-rate home loan customers.
Navigate this article
How much could you save with a 0.25% cut?
| Loan size | Current monthly repayment | New monthly repayment | Drop in monthly repayment |
|---|---|---|---|
| $500,000 | $3,240 | $3,164 | -$76 |
| $600,000 | $3,888 | $3,797 | -$91 |
| $750,000 | $4,860 | $4,746 | -$114 |
| $1,000,000 | $6,480 | $6,328 | -$152 |
Note: Based on an owner-occupier paying principal and interest at the estimated RBA existing customer rate of 6.06% in April 2025 and 25 years remaining. Assumes RBA cut is 0.25% pts and that banks pass them on the month following an RBA change.
Will Your Bank Pass on the Full RBA Rate Cut?
While the Reserve Bank of Australia (RBA) is expected to cut the cash rate by 0.25% on 20th May, there's no guarantee your bank will pass the full discount on to you. In fact, history tells us that lenders often retain part of the cut to protect their profit margins.
- Banks are not obligated to pass on the full RBA cut to customers.
- There is no requirement for lenders to notify you when they drop home loan rates.
- Lenders do not automatically lower your automatic repayments, in line with your new rate.
- Lenders may delay reductions or apply cuts selectively to different loan products.
So how do I find out if my rate has lowered?
The only way to know if you’re benefiting is to:
- Check your rate manually via online banking.
- Call your lender.
Banks rely on customer apathy to maintain higher profits. According to ASIC research, homeowners who have had their mortgage with the same lender for three or more years are, on average, paying 0.58% more than someone who has recently taken out a loan.
Why a Rate Cut Doesn't Always Mean a Competitive Loan
A lower interest rate doesn’t necessarily mean you have the best deal. Even if your bank passes on the full 0.25% cut, your mortgage rate could still be significantly higher than the market average.
- If your current home loan rate is 0.3% above the average, even after a 0.25% RBA cut, your rate may still be uncompetitive.
- Over a 30-year loan, even a small 0.3% difference could cost you tens of thousands of dollars.
How Refinancing Can Save You Thousands
If your bank isn’t offering you the best rate, refinancing could be your smartest financial move. By switching to a more competitive lender, you could slash your repayments and free up cash for more important things.
- Banks compete harder for new customers – you can leverage better deals.
- You could reduce your repayments instantly – more cash for savings, investments, or lifestyle upgrades.
- Pay off your home loan faster – keeping repayments the same on a lower rate means more of your money goes to the principal.
According to ASIC research, borrowers with the same lender for 3+ years pay, on average, 0.58% more than a newly settled loan. A 0.58% rate difference on a $500,000 mortgage can cost you over $2,900 per year in extra interest payments.
15 Years of Cash Rate Movement
Which banks have passed on the RBA rate cut?
Find out if your bank is lowering their home loan rates, and when it will take effect.
Adelaide Bank Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 6 June
ANZ Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 30 May
AMP Interest Rate Cut
- Rates under review - no announcement
Athena Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 20 May
Australian Military Bank Interest Rate Cut
- Rates under review - no announcement
Australian Mutual Bank Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 1 June
Australian Unity Bank Interest Rate Cut
- Rates under review - no announcement
Auswide Interest Rate Cut
- Rates under review - no announcement
Bank Australia Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 2 June
Bank First Interest Rate Cut
- Pending
Bank of Melbourne Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 3 June
Bank of Queensland Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 6 June
BankSA Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 3 June
Bank of Sydney Interest Rate Cut
- Rates under review - no announcement
Bankwest Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 30 May
BankVic Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 3 June
BCU Interest Rate Cut
- Rates under review - no announcement
Bendigo Bank Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 6 June
Beyond Interest Rate Cut
- Rates under review - no announcement
Commonwealth Bank Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 20 May
Credit Union SA Interest Rate Cut
- Rates under review - no announcement
Defence Bank Interest Rate Cut
- Rates under review - no announcement
Firstmac Interest Rate Cut
- Rates under review - no announcement
G&C Mutual Bank Interest Rate Cut
- Rates under review - no announcement
Gateway Bank Interest Rate Cut
- Rates under review - no announcement
Great Southern Bank Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 4 June
Greater Bank Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 30 May
Heritage Bank Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 30 May
Homeloans.com.au Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 11 June
Homestar Finance Interest Rate Cut
- Rates under review - no announcement
Horizon Bank Interest Rate Cut
- Rates under review - no announcement
HSBC Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 2 June
Hume Bank Interest Rate Cut
- Rates under review - no announcement
IMB Interest Rate Cut
- Rates under review - no announcement
ING Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 3 June
- Announced: 20 May
loans.com.au Interest Rate Cut
- Rates under review - no announcement
Macquarie Bank Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 23 May
ME Bank Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 7 June
MOVE Bank Interest Rate Cut
- Rates under review - no announcement
MyState Bank Interest Rate Cut
- Rates under review - no announcement
NAB Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 30 May
Newcastle Permanent Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 30 May
P&N Bank Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 10 June
People's Choice Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 30 May
Pepper Money Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 5 June
QBank Interest Rate Cut
- Rates under review - no announcement
Qudos Bank Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 29 May
RACQ Bank Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 3 June
Regional Australia Bank Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 4 June
Resimac Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 11 June
St George Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 3 June
State Custodians Interest Rate Cut
- Rates under review - no announcement
Summerland Bank Interest Rate Cut
- Rates under review - no announcement
Suncorp Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 30 May
Teachers Mutual Bank Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 1 June
The Mutual Bank Interest Rate Cut
- Rates under review - no announcement
Tiimely Interest Rate Cut
- Rates under review - no announcement
Ubank Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Neat and Flex standard variable rate home loans
- Effective date: 29 May
Unloan Interest Rate Cut
- Rates under review - no announcement
UniBank Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable rate home loans
- Effective date: 1 June
Virgin Money Interest Rate Cut
- Announced: 21 May
- Rate cut: 0.25%
- Applies to: Variable rate home loans
- Effective date: 6 June
Westpac Interest Rate Cut
- Announced: 20 May
- Rate cut: 0.25%
- Applies to: Variable-rate home loans
- Effective date: 3 June
Yellow Brick Road Interest Rate Cut
- Rates under review - no announcement
What a Rate Cut Means for You
This simple tool allows you to see how rate movements impact your mortgage repayments.