RBA Cuts Rates: Here’s What to Do Next

The Reserve Bank has delivered another round of interest rate relief, cutting the official cash rate by 0.25% — from 4.10% to 3.85%.

This is the second cut in the current cycle (the first was back in February), and it’s welcome news for many mortgage holders feeling the pinch. The decision reflects slowing economic growth and continued pressure on households, with the RBA adjusting policy to help ease the strain.

What does this mean for repayments?

If you’ve got a home loan, this cut could translate to lower monthly repayments — but it depends on your lender.

For example, if you’re an owner-occupier with a $600,000 loan over 25 years, this 0.25% drop could reduce your repayments by around $91 a month, according to Canstar.

But here’s the catch: not all lenders move at the same pace. Some adjust rates quickly, while others take longer — and some may not move at all.

Has your lender made a move?

There’s no guarantee your lender will pass the full rate cut on — or pass it on at all.

That’s why now is a smart time to check in with us (your local brokers). If your lender hasn’t acted, or you’re unsure what this change means for your situation, it’s worth having a chat.

We’re here to help you:

✔️ Understand how this rate cut could affect your loan
✔️ Monitor what your lender is doing
✔️ Compare your current rate with what’s available elsewhere
✔️ Help refinance or arrange an investment loan

Will rates keep dropping?

Markets are currently predicting further cuts may be on the horizon, with some analysts expecting the cash rate to fall to around 3.35% by the end of the year. August and November have been flagged as potential decision points.

Of course, economic conditions can shift. While growth has softened and inflation data is more favourable, strong employment figures are creating some uncertainty about how many cuts we’ll actually see.

What’s next?

Even one rate cut can make a difference to your household budget — and we want to help you make the most of it. If your lender hasn’t passed on the savings, or you want to explore your options, get in touch.

Let’s make sure you’re not paying more than you need to.

Need help reviewing your rate or switching to a better deal?

Chat to us today and we’ll help you understand what the RBA’s move means for you.