The Reserve Bank has cut official interest rates by 25 basis points to a fresh record low of 2 per cent.
If passed on in full, the move would save a borrower with a $300,000 mortgage around $47 per month in repayments.
ANZ was the first major bank to pass on the rate cut, lowering its standard variable mortgage rate by 25 basis points to 5.38 per cent, effective this Friday.
Interest rate monitoring firm RateCity said the lowest-rate discount variable home loans should now drop below 4 per cent for the first time on record.
Reported on ABC website 5.5.15