Westpac is the slowest bank of the big four to pass on interest rate cuts← Homepage
WESTPAC is the slowest of the big four banks to pass on interest rate cuts to home loan customers leaving them to miss out on significant savings.
Exclusive analysis crunched by financial comparison website RateCity found since the Reserve Bank of Australias downward cash rate spiral began in 2011, Westpac has taken an average 14 days to pass on the cuts to borrowers.
The banks customers are missing out on an average $2.1 million in savings each day they have to wait for the cut to be passed on, the site estimated.
Rival lender ANZ comes in the second worst taking 11 days to pass on a cut after an RBA announcement, while the Commonwealth Bank and National Australia Bank take eight days.
But Bendigo Bank appears to be the worst this rate cut, they are not passing on the 25 basis point cut to customers until May 30.
This is 27 days after the RBA rate announced the cash rate was being lowered to 1.75 per cent.
RateCity spokeswoman Sally Tindall said it was unacceptable lenders were being tight and taking weeks to pass on the cuts to customers.
The big four banks make a combined $6.9 million a day after the latest rate cut for each day they dont pass on the cut.
Borrowers are missing out the longer banks take to pass on a rate cut, Westpac customers are missing out on $2.1 million a day every time they delay pass on the cut, she said.
Historically we have seen major banks pass rate cuts on within as few as three days.
At least two of the big four banks have also been slow to pass on the rate cut to mortgage holders but extremely quick to pass on cuts to savings holders.
A Westpac spokeswoman defended the delays this latest rate cut will take 20 days to be passed on to Westpac customers in full.
We are pleased to pass on the full rate cut of 0.25 per cent (this month), the timing to implement this change is consistent with most of our rate cuts over a number of years, she said.
All of the big four banks except ANZ announced they would pass on the 25 basis point cut in full but ANZ would only pass on a 19 basis point drop.
Lender ME is the stingiest bank so far and will pass on a measly five basis point fall.
Mortgage Choice spokeswoman Jessica Darnbrough said cuts will often take several weeks to filter through to borrowers and said if they werent pleased with the result to shop around.
If, once all rate changes have been announced, a borrower is unhappy with their mortgage, they should take the time to review their options and see if there is a better lender and product on the market, she said.
Economists are predicting another cash rate cut after the Federal election and for it to most likely be in August.