RBA Cuts Rates - What It Means for Your Mortgage

Written By Sarah Cox

Well, it finally happened. News that mortgage holders everywhere have been hanging out for…

After what felt like a never ending cycle of rate hikes and holding patterns, the RBA just cut the cash rate by 0.25% and yes, your mortgage might just be breathing a little easier.

So, what’s the go and who’s playing nice?

  • CBA: -0.25% from 30 May

  • NAB: -0.25% from 30 May

  • Westpac: -0.25% from 3 June

ANZ and a few others are still keeping us on our toes, we’ll keep updating you as announcements roll in.

For the average homeowner with a $600,000 loan, that’s around $90-ish a month back in your pocket. Not exactly a European summer but hey, it’s a decent few dinners or a chunk off your groceries.

So what does this actually mean for you?

If you're on a variable rate:

You should see a reduction in your repayments soon. But this is important not all lenders are created equal. Some will cut sooner than others. Some won’t cut as deep. So don’t assume it’s happening, check your rate.

If you’re on a fixed rate:

Nothing changes (yet). But now’s a smart time to start prepping for what happens when your fixed rate ends because then you’ll need to make some real decisions.

If you’re thinking about buying:

A lower cash rate might boost your borrowing capacity just enough to move you from “maybe” to “actually, let’s do this.”

What does a 0.25% cut actually mean in dollars?

Let’s say you’ve got a $500,000 loan:
0.25% = around $1,250 saved per year
 That’s roughly $104.17 per month, straight back in your pocket.

And yes, that’s worth checking in on.

So… what should you do?

  • Review your loan

  • Know your rate

  • Don’t wait for your bank to magically do the right thing

  • Talk to someone who actually explains stuff in normal words (hi, we can help here 👋)

Just because your lender drops their rate doesn’t mean they’re the most competitive.

All this move means is the playing field shifts slightly — but it doesn’t automatically give you more power unless you use it.

So if your rate starts with a 6, or you haven’t looked at your loan in over a year, now is your moment.

Book a Lattes & Loans chat with us and let’s see:

  • If your lender’s passing it on properly

  • Whether you’re still on the best deal

  • And if there’s a way to give your repayments a glow-up

Because while the RBA does its thing… you still deserve to feel in control of your loan.

Sarah Cox
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