The two largest banks have passed on the Reserve Bank's interest rate cut, with Westpac giving home owners a slightly bigger reduction.
Commonwealth Bank, the nation's largest home lender, moved first, announcing it will pass on the full quarter of a percentage cut made by the RBA.
Its standard variable rate on mortgages will drop to a five year low of 5.65 per cent on February 20.
Westpac went further with a 28 basis point cut to 5.7 per cent, its lowest variable rate since 2009.
Westpac's variable rate has been the highest of the big four banks for several years, and new chief Brian Hartzer has been under some pressure to change that.
ANZ will announce its decision by Friday, while National Australia Bank is yet to respond.
Both lenders have current variable rates of 5.88 per cent.
Speaking before CBA and Westpac's moves, Treasurer Joe Hockey ramped up pressure on the banks, saying they must help reduce business costs and pass on the latest reduction in full to home owners, small business and credit card holders.
"The flow-through to the Australian economy is significant, and importantly it must be immediate," he told ABC radio.
The big banks twice failed to pass on RBA cuts in full in 2012.
Commonwealth Bank said its lower rates would save home owners $48 a month, based on an average mortgage of $300,000.
Westpac said its mortgage customers will save $52 a month, or $624 a year.
Westpac retail and business banking group executive Jason Yetton said the cuts were good news for home owners, Australia's economic outlook, and consumer and business confidence.
RBA governor Glenn Stevens said the cash rate was cut to a record low of 2.25 per cent to boost the economy amid worse than expected demand and rising unemployment.
That sentiment was supported on Wednesday by a drop in NAB's quarterly measure of business confidence.
WHO HAS CUT AND BY HOW MUCH
* Westpac, down 0.28 pct
* CBA, down 0.25 pct
* Bank of Queensland, down 0.25 pct
* ME Bank, down 0.25 pct
* ING Direct, down 0.25 pct
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