Big four banks pass on the RBA’s rate cut, slicing interest on business and home loans

The last of the big four banks, NAB and ANZ, have joined the others in passing the Reserve Bank’s rate cut on to borrowers, effectively lowering interest rates on some business loans and fixed-term mortgages.

NAB is knocking 200 basis points off the interest rate of its unsecured QuickBiz loan for the next three months, which follows the first reduction of 200 basis points earlier in March.

As the Reserve Bank’s actions on Tuesday feed through to the government’s SME guarantee scheme, NAB announced reductions of interest on business support loans late Wednesday.

ANZ is also slicing rates for borrowers eligible for the government’s guarantee scheme.

The Next Step Business Loan rate has been trimmed by 0.75% to 4.24% and ANZ has set fixed-rates for new vehicle and equipment purchases from 2.85%.

ANZ group executive, Australia retail and commercial, Mark Hand said on Wednesday ANZ is willing to play its role alongside the government and the Reserve Bank in supporting economic recovery.

“The RBA and the government are rightly focussed on supporting the economy by making long-term financing cheaper for small businesses and households during this difficult period. ANZ continues to play its part,” Hand said.

“By providing a lower rate for our Next Step Business Loan — part of the government SME guarantee scheme — we will help our customers restock and rebuild,” Hand added.

All of the major banks have cut rates for one-, two- and three-year fixed rate owner-occupied home loans, but none opted to reduce interest rates for property investor borrowers.

Westpac and the Commonwealth Bank are offering four-year fixed-rate home loans at 1.99%. NAB is offering a version at a rate of 1.98% and ANZ is offering its four-year fixed-rate loan at the highest rate of 2.29%.

This suite of changes to business and home loan rates will kick in by mid-November.