Why Some Banks Are Already Cutting Rates

In recent weeks, several Australian banks have proactively reduced their mortgage interest rates—even before the Reserve Bank of Australia’s (RBA) official cash rate announcement, scheduled for 20 May 2025. These cuts are a strong signal that lenders are anticipating a shift in monetary policy and are moving early to remain competitive.

Recent rate cuts from major lenders

• Macquarie Bank kicked things off by lowering its fixed rates across all terms, with two- and three-year fixed loans now sitting at 5.19%—the lowest among major lenders at the time.
• ANZ & Westpac followed suit slashing their rates on fixed terms.
• Commonwealth Bank (CBA) now offers a 5.84% variable rate for new digital-only loans with a 40% deposit.
• Other lenders are all following suit and the rates are changing rather rapidly too!

These changes are largely targeted at new customers, and may not automatically flow through to existing borrowers. That’s why now is a critical time to review your current lending setup.

At Empower Wealth, we’ve also observed growing buyer confidence on the ground. Our Buyers Agents are reporting increased activity, reminding us that market sentiment can turn quickly. However, bank valuations tend to lag behind the market by two to three months. That means even if your property’s value is rising, your ability to access that equity could be delayed—potentially costing you valuable opportunities.

Which is why it’s crucial to have an investment-savvy Mortgage Broker in your book to ensure that they do all the heavy-lifting for you – from making sure you optimise your loan structure to sorting out paperwork and bank valuations on your behalf.

Whether you’re looking to invest or simply want to ensure you’re still on a competitive loan or speaking with an investment-focused Mortgage Broker can make a significant difference. Our team takes the time to understand your goals—not just your numbers—and can help you make informed decisions that support your long-term plans.

Want to understand how the banks really work?

If you haven’t watched our Beat the Banks video series yet, it’s a must-watch.

This series isn’t new, but many of our clients have found it incredibly helpful—especially when it comes to demystifying the lending process and learning how to get a better deal from the banks.

In just a few short videos, you’ll learn:

• Why the banks play the game the way they do
• The pitfalls of comparison rates and advertised discounts
• How to identify your real interest rate
• What a ‘loyalty tax’ is (and how to avoid it)
• How to negotiate with your bank’s retention team
• Why using a mortgage broker often beats going direct

With lenders already moving and competition heating up, you may have more negotiating power than you think. Speak with our Mortgage Broking team for a free loan review—it could save you thousands. 

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