20 bps the most common mortgage rate cut last month

A large number of lenders have followed the lead set by Commonwealth Bank and National Australia Bank in cutting their standard variable mortgage rates by 20 basis points in response to the 25 bps cut in the cash rate last month.

According to comparison site Mozo, more than 35 lenders cut their variable rate by 20 bps. They include Macquarie Bank, Teachers Mutual Bank, Auswide Bank, Citibank, Suncorp, Heritage Bank and Bank of Queensland.

Westpac, Yellow Brick Road and ADCU cut by 22 bps.

Community Mutual Group cut by 21 bps, Bankwest cut by 17 bps and Queenslanders Credit Union cut by 15 bps.

Only one lender cut by more than 25 bps; HomeloanHQ reduced its standard variable rate by 30 bps.

Mozo lists 29 lenders that cut by 25 bps. They include ANZ, bankmecu, Firstmac, HSBC, ING Direct and ME Bank.

According to Mozo, the lowest variable rate currently in the market is 3.98 per cent, offered by Homestar and loans.com.au. Mortgage House is offering 3.94 per cent on loans with LVRs below 50 per cent.

In the fixed rate market, HSBC is offering a three-year rate at 3.95 per cent and Newcastle Permanent is offering a two-year rate at 3.89 per cent.