This is how much you will save on your home loan from the RBA cut

Photo: Joe Raedle/Getty Images

The 0.25 percentage point cut in official cash rates to a record low of 1.5% doesn’t fully translate when it is applied to home loans.

The Commonwealth, the first of the banks to announce a corresponding fall in mortgage rates, is cutting home loans by about half the official drop, by 13 basis points to a record low of 5.22% for owner occupiers.

And NAB has just announced a 0.1% cut on its home loan rates.

But according to loan researchers CANSTAR, the CBA cut works out to a monthly saving on home loan payments of:

$38.41 on $500,000
$34.57 on $450,000
$30.73 on $400,000
$26.89 on $350,000
$23.05 on $300,000
$19.21 on $250,000
$15.37 on $200,000

NOW WATCH: Briefing videos

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.