More lenders join big four banks to pass on interest rate cut to homeowners

Australia's big four banks are among the lenders who have announced they'll pass on this week's interest rate cut to homeowners.

The Reserve Bank of Australia handed down its second interest rate cut of the year yesterday, reducing the cash rate from 4.10 to 3.85 per cent.

For someone with the average mortgage of $660,000, the decision will lower monthly repayments by about $100 a month.

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NAB was first to announce it will cut its variable mortgage rates, but like most banks, it's going to wait a full 10 days before passing on the relief to its customers.

The bank will reduce its standard variable home loan interest rate by 0.25 per cent, effective May 30.

ANZ followed: its variable home loan rate will drop by 0.25 per cent, also passing on the Reserve Bank's cut in full.

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Like NAB, though, it's going to wait until the end of the month.

Commonwealth Bank has also passed on the rate cut to variable home loan customers, from May 30.

Westpac followed, saying it will cut variable home loan rates by 0.25 per cent.

It's going to wait even longer than its counterparts to pass on the relief though – mortgage holders won't benefit until June 3.

Bendigo Bank also cut rates for its customers by 0.25 per cent.

The change will hit on June 6.

However Macquarie customers will get some relief sooner.

Variable home loan reference rates will drop on Friday by 0.25 per cent, the bank said.

Despite the cut, the RBA said it remains cautious about the outlook for the economy.

While homeowners are breathing a sigh of relief, there are some concerns about the potential to drive up already high home prices.