Reserve Bank governor Philip Lowe has urged customers of ANZ and Westpac to take their business elsewhere because of their failure to pass on the RBA rate cut in full. Federal Treasurer Josh Frydenburg has also criticised those banks who reduced their mortgage rates by less than the 0.25% RBA reduction.

But mortgage broker Louise Lucas says those banks were already offering lower rates than competitors like NAB and Commonwealth Bank.

Lucas, of the Property Education Company, says: “ANZ and Westpac have been buying business with much lower offers than the advertised rates. They have been much lower than the Commonwealth Bank for months. But they bring it on themselves by the way they publish their interest rates.

“People should consult an expert because the standard variable rate that is advertised bears no comparison to the actual rate that borrowers are paying. We do a comparison across the major lenders every single day to find out what’s out there.” Lowe demanded that banks pass on the full cut in the official interest rate to help drive economic growth.