Potential RBA Rate Cuts in February: What It Means for Your Mortgage
Exciting news for homeowners—many economists and major banks, including NAB and Westpac, predict that the Reserve Bank of Australia (RBA) may cut interest rates by 0.25% in February. If this happens, what impact will it have on your home loan repayments?
What Happens to Your Home Loan Rate?
- Fixed-rate loans: No change—your rate remains locked in until your fixed term ends. If your fixed period is ending soon, it’s worth discussing your options.
- Variable-rate loans: If the RBA cuts the cash rate, lenders may pass on the full 0.25% reduction, but they’re not obligated to. While banks sometimes hold back part of the rate cut, the current cost-of-living pressures may encourage them to pass on the savings to borrowers.
Your lender will notify you if your rate is changing, but we can help you assess whether you’re getting the best deal available.
Will Your Mortgage Repayments Drop?
It depends on your lender. Some banks automatically reduce repayments when rates fall, while others keep them the same—meaning you’ll pay off more principal instead of interest.
If you were expecting lower monthly repayments, check with us to see whether your bank will adjust them or if you need to make a request.
How Much Could You Save?
If a 0.25% rate cut is passed on, here’s how much repayments could decrease:
- $500,000 loan → Save $77/month (~$924/year)
- $750,000 loan → Save $115/month (~$1,380/year)
- $1 million loan → Save $154/month (~$1,848/year)
Even small reductions can free up cash for your budget or help you pay off your mortgage faster.
Struggling with Mortgage Repayments? Let’s Talk.
Even with a potential rate cut, many households are still feeling the pressure of high interest rates and the rising cost of living. If that’s you, now is the time to review your home loan.
We can help you explore:
✅ Renegotiating a lower rate with your current lender
✅ Refinancing to a more competitive loan
✅ Debt consolidation to reduce financial stress
Every situation is unique, and we’re here to find the best solution for you.
Book a Free Consultation Today
Whether you’re buying or refinancing, we’re here to support you every step of the way. You can book an obligation-free appointment CLICK HERE to get started today.
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