RBA cash rate cut: how a 0.25% drop could save Australian homeowners $2,884 a year
The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points, bringing it down to 3.60%, consistent with Finder’s RBA Cash Rate Survey.
For homeowners, this interest rate relief could mean more money in your budget each month. Aussies with a $500,000 mortgage could save around $79 a month, that’s roughly $953 a year in monthly repayments, if their lender passes on the August rate cut in full.
That figure could increase to about $240 per month, or roughly $2,884 per year, when factoring in the combined effect of all three rate cuts made in 2025.
Matthew Peter, economist at QIC, noted that with inflation easing and the labour market showing signs of softening, there are now no barriers standing in the way of an interest rate cut.
How to make the most of lower interest rates and smaller home loan repayments
Lower home loan repayments can be the reset button you need, especially if you’ve been feeling money stress or looking for help with cost of living pressures. Here’s how you can put those savings to work to manage money more effectively:
- Review your mortgage: refinancing with MyBudget Loans could get you an even better interest rate
- Make extra repayments: pay down your loan faster and save thousands on interest over time
- Boost your emergency fund: create a buffer for unexpected expenses
- Pay off other debts: reduce high-interest credit card balances or personal loans.
Why Australian homeowners should act now after the RBA interest rate cut
Economists expect the RBA will hold rates steady in September, but future decisions can go either way. Using today’s lower interest rate to strengthen your financial position means you’re prepared if the cash rate changes again.
Need help finding the best deal? MyBudget Loans offers free home loan health checks to help you compare your current loan, explore refinancing options, and maximise your savings.
👉 Book your free home loan health check
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