But what does it actually mean for your mortgage repayments?

If you have a home loan between $600,000 and $700,000, this rate cut could provide noticeable savings on your monthly repayments. Let’s break it down.

Real Savings on Your Mortgage

With a 0.25% rate reduction, here’s how much you could expect to save per month:

• $600,000 loan – Repayments decrease by approximately $92 per month
• $650,000 loan – Repayments decrease by approximately $100 per month
• $700,000 loan – Repayments decrease by approximately $108 per month

Over a year, that’s a potential saving of more than $1,100 on a $600,000 loan and $1,300 on a $700,000 loan.

What to Do With the Extra Savings?

While the reduced repayments might feel like a small relief, this is a great opportunity to get ahead on your mortgage. Instead of lowering your monthly payments, consider keeping your repayments the same as before the rate cut. Doing this could help you:

✅ Pay off your home loan faster

✅ Reduce the total interest paid over time

✅ Build a buffer for future rate changes

If you’re looking to refinance, upgrade, or even enter the market for the first time, this is a good time to review your loan options. Many banks will pass on the rate cut, but it’s always worth comparing lenders to ensure you’re getting the best deal.

Want to know how this rate cut affects your home loan? Get in touch to discuss how to maximise your mortgage savings in this changing market.

Of course, the information provided in this blog is general in nature and does not take into account your personal financial situation. Interest rate changes may impact individuals differently based on loan terms, lender policies, and personal financial circumstances. Before making any financial decisions, it’s recommended that you seek advice from a qualified mortgage broker or financial advisor to determine the
best course of action for your situation.