RBA Rate Decision Today: What a Cut Could Mean for Your Mortgage
Big News for Homeowners: RBA Rate Decision Today!
Today is a big day for Australian homeowners. The Reserve Bank of Australia (RBA) is making its latest interest rate decision. Many experts predict the RBA will cut rates. This would bring welcome financial relief to mortgage holders. You’ve likely felt the squeeze from past rate hikes. A cut would be great news for your budget.
“Many borrowers feel this third rate cut will finally offer real relief for their household budgets,” says Debbie Hays, Money.com.au’s Mortgage Expert. “It’s the ‘rule of three’ in action for many families.”
How an RBA Rate Cut Could Save You Money
Let’s look at the potential RBA rate cut savings. If the RBA cuts rates by 0.25 per cent today, here’s what it could mean for your mortgage. These figures show real RBA rate cut savings for many.
- $600,000 Mortgage: You could save an extra $90 each month. This adds up! Your total monthly savings since the RBA started cutting rates could be $273.
- $700,000 Mortgage: You might save around $106 more per month.
- $800,000 Loan: An extra $120 could stay in your bank account each month.
- $1 Million Mortgage: This potential cut alone could save you $150 per month. Your total monthly RBA rate cut savings could reach $456!
These savings are based on a starting loan rate of 6.24 per cent (average in February 2025). They also assume a 25-year loan term.
Lenders and Your Savings
Debbie Hays points out, “After many rate hikes, people are now watching closely. They want to see if their lender passes on the full cut.” This extra money is a welcome boost. It comes at a time when many are also receiving their tax returns. Any extra breathing room in the budget is a relief right now.
What About Future Homeowners?
A potential rate cut also impacts those hoping to buy a home. “A third rate cut could increase borrowing power by up to $50,000,” Hays explains. This depends on your lender. More borrowing power could open doors to a bigger home or a better suburb.
However, it’s a “double-edged sword.” More borrowing power for buyers can also push property prices higher. It can also increase competition.
Current Fixed Rates from Big Banks
Here are some of the lowest fixed rates from Australia’s Big Four Banks. This table helps you compare options:
| Term | CBA | Westpac | NAB | ANZ |
| 1-year | 5.69% | 5.69% | 5.54% | 5.29% |
| 2-year | 5.74% | 5.59% | 5.44% | 5.19% |
| 3-year | 5.49% | 5.89% | 5.39% | 5.34% |
| 4-year | 5.89% | 5.89% | 5.79% | 5.74% |
| 5-year | 6.29% | 5.89% | 5.79% | 5.74% |
Rates are for owner-occupied loans with principal and interest repayments. LVR rules apply. Source: Canstar.com.au.
Get Prepared for Potential Savings!
Want to know how a potential RBA rate cut could truly impact your mortgage? Or how it might boost your borrowing power? It’s crucial to get clear advice. Contact Ez Mortgage Broker today. We help you navigate rate changes. We can ensure you get the best possible home loan deal.
Contact Ez Mortgage Broker Now!
- Call us: 0447 890 007 or 1300 050 099
- Email us: [email protected]
