Third rate cut delivered this year as RBA trims cash rate to 3.60%

Borrowers around the country have a sunnier financial outlook after the RBA trimmed the cash rate to 3.60%, delivering cash rate cut savings on mortgage repayments. How much could your monthly payments decrease?

Following last month’s unexpected hold, the RBA delivered its third 2025 cash rate cut to ease cost-of-living pressures.

RBA Governor Michele Bullock said in a statement that the Board unanimously decided to cut the cash rate by 25 basis points as underlying inflation continued to decline back towards the midpoint of the 2-3% target range.

How much could you now save with RBA cash rate cut savings on mortgage repayments?

Unless you have a fixed-rate mortgage, your bank may soon follow the RBA and lower your variable loan interest rate.

For an owner-occupier with a 25-year loan of $500,000 paying principal and interest, this month’s 25 basis point rate cut means your monthly repayments could decrease by about $76 a month. That would put $912 a year back into your household budget.

With a $750,000 loan, your repayments may drop by about $114 a month or $1368 a year. Meanwhile, a $1 million loan could decrease by about $152 a month – or $1824 a year.

This all assumes that your lender automatically passes on the full 25 basis point cut to your home loan. Keep in mind, not all lenders automatically lower variable home loan repayments when rates are cut.

Some lenders simply maintain your repayment amount at the old level. It’s just that more of your money goes towards paying off the principal (rather than the interest) each month. But you can ask them to reduce your repayments in line with their cuts. To find out what your lender is doing with your loan, get in touch with us in a few days once the dust has settled.

Still feeling stress from your mortgage?

Even after this rate cut, many Australian families face higher living costs and interest rates than when they got their home loan. If that’s you, now’s a great time to contact us for a home loan health check.

You could improve your situation by renegotiating, refinancing, or consolidating debt. Whatever your situation, we’re here to help you explore your options. Contact our Lending Specialists today for more information.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.