Bendigo Bank and People First Bank join major lenders in cutting rates
Two more Australian banks have announced they will pass on the Reserve Bank of Australia’s (RBA) latest cash rate reduction to home loan customers, lowering interest rates by 0.25 percentage points.
Bendigo Bank said it will reduce variable interest rates on home loans by 0.25%, with changes effective from June 6.
“We know many of our lending customers welcomed the RBA’s decision to cut rates,” said Taso Corolis (pictured above left), chief customer officer for consumer banking at Bendigo Bank. “We’re pleased to continue providing homeowners with rate relief by delivering a second interest rate cut in 2025.”
People First Bank will also cut rates on all new and existing variable home loans by 0.25%, with the reductions taking effect on May 30. The rate changes apply to loans under both the Heritage and People’s Choice brands.
“We’re very pleased to be passing on the full rate cut to our customers – and doing so quickly,” said Maria-Ann Camilleri (pictured above right), chief customer officer at People First Bank. “With many Australians still feeling the effects of cost-of-living pressures, this reduction will make a difference.”
The RBA announced its 0.25% rate cut to 3.85% earlier this week, aimed at easing economic pressures and supporting households amid financial challenges.
Bendigo Bank and People First Bank join several major lenders that have already announced they will pass on the RBA’s quarter-point cut. Macquarie Bank will implement the cut from tomorrow, May 23. Commonwealth Bank, NAB, ANZ, Bankwest, and Suncorp will apply the change from May 30.
AMP will follow on June 2, while Westpac, ING, RACQ Bank, BankSA, Bank of Melbourne, and St.George will implement the reduction on June 3. Pepper Money will adjust its rates on June 5, and Homeloans will do so on 11 June. Online lenders Athena and Unloan have already passed on the cut immediately.
According to financial comparison site Canstar, a borrower with a $500,000 mortgage could save around $76 per month if their lender passes on the full cut. A $600,000 loan would see monthly savings of approximately $91, while repayments on a $750,000 loan could drop by $114. Borrowers with a $1 million mortgage stand to save around $152 a month.
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