Recent History suggests rate cut will drive refinancing surge

Dozens of banks have responded to the Reserve Bank of Australia’s recent decision to reduce the cash rate from 4.10% to 3.85% by cutting interest rates for their variable-rate loans.

While the size and timing of the cuts vary from lender to lender, the trend is clear – most variable-rate borrowers are already seeing or will soon see their monthly repayments fall.

For a borrower with $500,000 outstanding on their home loan and 25 years remaining in their term, a rate cut of 0.25 percentage points means savings of about $75 per month or $900 per year. Please note these are rough estimates; actual savings will depend on your loan size, remaining term and interest rate.

Dozens of banks have responded to the Reserve Bank of Australia’s recent decision to reduce the cash rate from 4.10% to 3.85% by cutting interest rates for their variable-rate loans.

While the size and timing of the cuts varies from lender to lender, the trend is clear – most variable-rate borrowers are already seeing or will soon see their monthly repayments fall.

For a borrower with $500,000 outstanding on their home loan and 25 years remaining in their term, a rate cut of 0.25 percentage points means savings of about $75 per month or $900 per year. Please note these are rough estimates; actual savings will depend on your loan size, remaining term and interest rate.

Contact us to find out how much you might be able to save by switching home loans.