Big News: RBA Interest Rate Cuts – What It Means for You

After more than four years, the Reserve Bank of Australia (RBA) has issued interest rate cuts, dropping the official cash rate from 4.35% to 4.10%. This marks a turning point in Australia’s economic landscape and brings much-needed relief to mortgage holders.

What the Rate Cut Means for Your Mortgage

If you’re paying off a home loan, this could mean some extra savings. Here’s how it could impact your monthly repayments:

• $600,000 mortgage – approx. $92 less per month
• $750,000 mortgage – approx. $115 less per month
• $1,000,000 mortgage – approx. $154 less per month

It might not seem like a massive amount at first, but over time, it adds up—especially if you use it to pay down your loan faster or offset other rising expenses.

Banks Passing on the Rate Cut

The big four banks—Westpac, Commonwealth Bank, ANZ, and NAB—have already confirmed they’ll be passing on the full 0.25% cut to borrowers. Many smaller lenders are following suit, with changes rolling out over the next few weeks.

When Will Your Bank Adjust Rates?

Each bank has its own schedule for implementing the new rates. Some acted immediately, while others are taking a phased approach. Here’s when some of the major lenders will be adjusting their rates:

Tuesday, February 25

• Gateway Bank: 5.60%

Thursday, February 27

• Ubank: 5.84%
• Bank First: 5.84%
• Defence Bank: 6.34%
• Qudos Bank: 5.64%

Friday, February 28

• NAB: 6.19%
• Commonwealth Bank: 5.90%
• ANZ: 5.84%
• AMP: 5.89%
• Macquarie Bank: 5.89%
• Auswide Bank: 5.74%
• Bankwest: 6.04%
• Suncorp: 5.57%

Saturday, March 1

• Australian Mutual Bank: 5.44%
• Australian Unity: 5.78%
• GMCU: 5.94%
• Up Bank: 5.75%

Monday, March 3

• Hume Bank: 5.74%
• Southern Cross: 6.23%

Tuesday, March 4

• Westpac: 6.19%
• Bank Australia: 5.13%
• Bank of Melbourne: 6.04%
• ING: 5.89%
• MyState Bank: 5.79%

Wednesday, March 5

• BCU: 5.74%
• Pepper Money: 6.59%

Friday, March 7

• Bank of Queensland: 5.93%
• Bendigo Bank: 5.84%

Saturday, March 8

• ME Bank: 5.88%

The Week After

• HSBC: 5.74% (March 10)
• Bank of Sydney: 5.79% (March 12)

What Should You Do Next?

Now is a great time to review your mortgage and make sure you’re getting the best possible deal. Here’s what you can do:

1. Check with your lender – Confirm when your bank is passing on the cut and whether your repayments will change automatically.
2. Consider refinancing – If your lender isn’t offering competitive rates, it might be time to shop around.
3. Use the savings wisely – Instead of spending the extra cash, consider increasing your repayments to pay off your loan faster.
4. Compare rates – Not all banks offer the same deal, so it pays to do some research.

What’s Next for Interest Rates?

While these interest rate cuts are a positive sign for borrowers, it’s still unclear whether more cuts will follow. The RBA will continue to monitor economic conditions, balancing inflation control with economic growth.

For now, mortgage holders can enjoy a little breathing room—and if you’re thinking about buying a home, now could be a great time to explore your options!

Stay tuned for more updates as they come in.