MyState Bank has become the latest lender to make clear it will hold back some of the Reserve Bank's interest rate cut.
The Reserve last week announced a 0.25 percentage point cut to the cash rate, to a record low 1.25 per cent, with governor Philip Lowe later urging lenders to pass it on in full to home borrowers.
Tasmanian-based MyState Bank on Wednesday said it would pass on 0.20 percentage points to standard variable rate borrowers.
Bank of us (0.15 percentage points) the ANZ (0.18), and Westpac (0.20) were among others not to pass the full amount on to borrowers.
MyState Bank general manager, banking, Tony MacRae said MyState's funding costs were increasingly driven by a combination of market forces, rather than just the cash rate.
"A number of considerations weighed into our decision, including trying to buffer our deposits and savings customers - particularly retirees or customers saving for their first home - from the impact of the cut," Mr MacRae said.
"Providing competitive rates for our deposit customers was a significant consideration in our decision."
MyState said most of its mortgage customers would get the 20 basis point cut.
Some who already held low rate basic home loan accounts "may" receive a 10-basis point cut.
The changes would take effect on June 27.