Why thousands of Aussie homeowners with Bendigo and Adelaide Bank will cop an $800 mortgage hit

Homeowners who borrow from the country’s largest banks aren’t tipped to receive the full benefits of the RBA’s latest rate cut. See why. PLUS, TRY OUR MORTGAGE CALCULATOR

Exclusive: Thousands of homeowners who borrow from one of Australia’s largest banks will receive just a fraction of the Reserve Bank’s latest 0.25 per cent rate cut.

This masthead can reveal that Bendigo and Adelaide Bank is only reducing rates by 0.1 per cent on loans arranged through as many as 14 mortgage management companies.

Missing out on the remaining 0.15 per cent will cost these borrowers more than $800 a year in extra interest payments based on a $750,000 loan.

Some of these loans are co-branded, so borrowers know the funds come from Adelaide Bank; however others do not bear its name.

The move to slice only 0.1 per cent from loans involving mortgage managers comes after Bendigo and Adelaide decided to exit the sales channel last year.

The move to slice only 0.1 per cent from loans involving mortgage managers comes after Bendigo and Adelaide decided to exit the sales channel last year. Picture: NCA NewsWire / Paul Jeffers

Industry sources said the miserly cut will slash the amount of compensation the bank has to pay to end its business relationships with mortgage managers.

This is because the compensation will be calculated based on the amount of lending the mortgage managers have on their books later this year.

So if unhappy customers leave it will decrease the compensation Bendigo and Adelaide has to shell out.

Bosses at four mortgage managers told this masthead customers of theirs with loans funded by Bendigo and Adelaide Bank were only getting a 0.1 per cent rate cut.

Three asked to remain anonymous but the CEO of the other, Well Home Loans’ Scott Spencer, said: “We are impacted along with other mortgage managers.”

Two of the other sources said 14 intermediaries had been affected: Allstate, AMO Home Loans, Better Choice, Better Mortgage, Blue Bay, e-money, Home Loans Ltd, Mortgage Ezy, Mortgage House, Mortgage Port, Resi, Victorian Mortgage Corp, Well and WLTH.

Well Homes CEO Scott Spencer.

“It’s 0.1 per cent across the board,” the owner of one mortgage manager said.

Another said Bendigo and Adelaide was acting unfairly because customers of another intermediary called Tiimely got the full 0.25 per cent. The mortgage manager noted Tiimely is part-owned by the bank.

A Bendigo and Adelaide Bank spokesman said it “understands not all stakeholders will be supportive of these changes.”

He said the bank “considers all pricing decisions carefully and seeks to balance the needs of borrowers and savers, while enabling the business to continue delivering sustainable growth.”

The bank, which is the nation’s sixth-largest lender, declined to answer questions about how many borrowers’ rates had been reduced by only 0.1 per cent. Nor was it willing to indicate what it planned to do after the next RBA cut, which could be as soon as July 8.

Until last week, the mobile version of Adelaide Bank’s website said it was lowering variable home loan rates by 0.25 per cent in response to the RBA’s May cut. The site did not mention any exceptions. Following inquiries by this masthead, the claim was removed.

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