Time to read : 3 Minutes

So the Reserve Bank of Australia (RBA) dropped the cash rate by 0.25%. That’s the second rate cut in five years, so mortgage-holders' jubilation is understandable. Cue cheers, calculator apps opening, and hopeful glances at mortgage statements.

But while some lenders rushed to pass on the savings, others have been dragging their feet like a teenager asked to clean their room.

Who’s holding out on us?

Many lenders – including the Big Four – jumped on the bandwagon pretty quickly with their fanfare announcements. But let’s not pop the bubbly just yet. While some banks hit “send” on those lower rates within minutes of the RBA announcement, others are still thinking about it – and hoping no one notices. Three of ‘The Four’ only lowered their variable rates on 30 May.

Why? 

Well, because the longer they delay, the more they make. The Big Four collectively hold around $1.13 trillion in home loans. So for every single day they don’t pass on that 0.25% cut, that’s an extra $7.6 million in their pockets. Every. Day.

In fact, Westpac has decided to really take their time and is passing on the cut a full 17 days after the RBA announcement. That’s enough time to finish a home loan application elsewhere. 

(Want to know how our mortgage brokers know this? Click below.)

As of late May, nearly 20 lenders were still keeping tight-lipped about whether they'd pass on the RBA cut. So if your mortgage is with someone like Reduce, La Trobe, or Well Money, you might want to check your statements and start asking questions.

What if your lender hasn’t passed on the rate cut at all?

Let’s be blunt: if your lender is playing hard to get, you don’t have to wait around pining. You have options, and better yet – they might save you a decent chunk of change.

Here’s what you can do:

1. Refinance with a pro

If your current lender is acting like rate cuts are optional, take your business elsewhere. Refinancing can mean grabbing a better rate now, not three Thursdays from next never. With competition among lenders heating up, there are plenty willing to woo you with lower interest rates and sweet signup deals.

(How do we know this? Glad you asked - care to click below?)

2. Call their bluff

Give your lender a ring. Ask (nicely) why they’re slow to act. Sometimes just the threat of refinancing is enough to get a rate review in motion. Don’t be shy – this is literally your money on the line.

3. Compare your loan anyway

When you call your lender, they may agree to a rate review. Great job, but while you’re on a roll, you may as well compare other home loans out there. You might be able to leverage them further - or ask an expert mortgage broker to do this part for you. It’s literally what they do all day, every day.

The bottom line

If your bank hasn’t passed on the cut, ask them why – politely but firmly. Then compare your options anyway because refinancing might get you a better rate, faster.

Don’t wait for crumbs – be proactive and protect your bottom line.

A rate cut is good news – but only if it actually shows up in your mortgage. And if your lender doesn’t deliver? You’ve got choices.

P.S. Want it sorted faster? Our brokers at Compare Club can help you explore your options – and do the legwork for you.