Which Banks Pass on Rate Changes Fastest (and Slowest) — May 2026

When the RBA moves the cash rate, banks aren't legally required to pass it through to existing variable-rate mortgages. They do have a choice — and that choice tells you a lot about how the bank treats existing customers vs new ones.

Two patterns are visible after the February and March 2026 moves:

• Pass-through speed. Some banks announce a rate change within hours of the RBA decision, effective 1-2 weeks later. Others delay 2-4 weeks, hoping for media cycles to pass.
• Pass-through completeness. The RBA moved 25bp in February and 25bp in March. The major banks all eventually moved 50bp on existing variable rates — but not always 50bp on new-business pricing. The gap there is what costs you.

The implication: if your bank moved fast and complete on the rate up, they'll usually move slow and incomplete on the rate down. Track this; it's a tell about who deserves your loyalty.

Pass-through behaviour after the two 2026 hikes (effective dates relative to RBA decisions):

• NAB — Both moves passed through in full, ~3 weeks after RBA decision.
• Macquarie — Both moves passed through in full, ~2 weeks after RBA. Notably aggressive on new-business pricing too.
• CBA — Both moves in full, ~3 weeks lag.
• Westpac — Both moves in full, ~3 weeks lag.
• ANZ — Both moves in full, ~3 weeks lag.
• Smaller lenders (Bendigo, BoQ, ING, ME) — Mixed. Most passed 100% but some held 5bp back as a margin grab.

The conclusion: there's no major-bank good actor on rate-up. They all moved fast. The relevant question becomes: who'll move fastest on rate-down? Historically that's been Macquarie and ING — they want new business, so they advertise faster.

Plug your loan + current rate + a hypothetical −0.25% scenario into the Rate Shock Calculator. See exactly what waiting an extra 4 weeks costs you in dollars. For a $750k loan that's roughly $40-45 in delayed savings — small, but multiplied across a million customers it's why banks delay.

Don't tell your bank "you're slow on rate cuts." That's accusatory and the rep can't do anything about it. Instead use the data as leverage:

"I'm noticing some lenders are pricing under 6.30% on comparable loans. With my LVR and 5-year repayment history, I'd expect to be in that band. Can you match it, or do I need to shop around?"

The retention team has discretion to discount your rate by 0.20-0.40% without manager sign-off, and another 0.10-0.20% with sign-off. Make it easy for them: clear ask, clear comparison, no emotion.

If you're declined, the public retail rate becomes a useful piece of evidence — at that point, switch. Run the savings in the Rate Shock Calculator, confirm the break-even in the Mortgage Calculator, and start a refinance application this week.

The market is currently pricing one to two more RBA moves before year-end (direction depends on which week you ask). Bank pass-through behaviour for the remainder of 2026 will be the same as Q1: full pass-through on hikes, partial pass-through on cuts.

That asymmetry is permanent. The defensive moves are:

1. Hold an offset balance, not a redraw balance. The interest saving is identical; the offset gives you full liquidity.
2. Re-negotiate every 12 months. Banks reprice silently — your loyalty discount evaporates over 18-24 months unless you re-anchor.
3. Track your effective rate against the published advertised rates. If your rate is more than 0.30% above the bank's own advertised new-business rate, you're paying the loyalty tax.

Run the numbers periodically in the Rate Shock Calculator and benchmark your peer position in the Money Mirror. None of this is financial advice — verify with the RBA and your lender's published schedules before acting.