The Reserve Bank of Australia has confirmed that it will drop the cash rate by 25 basis points at May’s board meeting.
While most banks are expected to pass on the rate cut in full, Compare the Market’s Economic Director David Koch warned that homeowners shouldn’t misplace their confidence in lenders.
“Rates may be starting to drop but that doesn’t guarantee you’re getting a good deal, especially if you haven’t refinanced in a few years,” Mr Koch said.
“If you’ve paid down your loan, and your property has increased in value, chances are you’ve improved your position to negotiate even better rates.”
As we did in February 2025, Compare the Market is tracking interest rate movements from some of Australia’s biggest banks and lenders. How are the banks moving? Watch this space to find out.
Previous rate cuts:
- February 2025 – 25 basis points.
Big four bank moves
ANZ
Rate move: 0.25%
Customers set to benefit: variable rate home loan customers
Effective from: Friday 30 May 2025
Commonwealth Bank
Rate move: 0.25%
Customers set to benefit: home loan variable interest rate customers
Effective from: Friday 30 May 2025
NAB
Rate move: 0.25%
Customers set to benefit: standard variable home loan interest rate customers
Effective from: Friday 30 May 2025
Westpac
Rate move: 0.25%
Customers set to benefit: variable home loan interest rates, for new and existing home loans
Effective from: Tuesday 3 June 2025
Other lender moves
AMP
Rate move: 0.25%
Customers set to benefit: variable lending rates for new and existing owner occupiers and investors
Effective from: 30 May 2025 for new customers and 2 June 2025 for existing customers
Bank of Melbourne
Rate move: 0.25%
Customers set to benefit: variable home loan interest rates, for new and existing home loans.
Effective from: 3 June 2025
Bank SA
Rate move: 0.25%
Customers set to benefit: variable home loan interest rates, for new and existing home loans
Effective from: Tuesday 3 June 2025
Bankwest
Rate move: 0.25%
Customers set to benefit: ariable home loan interest rate customers
Effective from: 30 May 2025
Bendigo Bank
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
HSBC
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
ING
Rate move: 0.25%
Customers set to benefit: variable interest rate home loan product customers
Effective from: 3 June 2025
Macquarie
Rate move: 0.25%
Customers set to benefit: variable home loan customers
Effective from: 23 May 2025
ME
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
Pepper Money
Rate move: 0.25%
Customers set to benefit: variable interest rate customers for existing residential, commercial, construction, and SMSF loans
Effective from: 5 June 2025
St. George
Rate move: 0.25%
Customers set to benefit: variable rate customers
Effective from: 3 June 2025
Suncorp
Rate move: 0.25%
Customers set to benefit: variable rate customers
Effective from: Friday 30 May 2025
Ubank
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
All banks and lenders may not be included in this list. We’ve included the lenders on our panel.
The information on this page is general only – check with your lender for further details on their interest changes and how you might be affected.
This page was last updated 20 May 2025.
Compare home loans with Compare the Market
