With the Reserve Bank of Australia (RBA) keeping the cash rate at 4.10%, many experts believe we’re likely to see interest rate cuts in the coming months to help ease cost-of-living pressures.

Banks like NAB and ANZ are predicting the RBA may begin reducing rates as early as May, with further cuts expected later in the year. If that happens, it could mean a noticeable difference for mortgage holders.

For example, if the cash rate drops by 1.5% over the next year (as some forecasts suggest), monthly repayments on a $600,000 loan could fall by around $500 a month. That’s a big help to families doing it tough with higher grocery, fuel, and utility bills.

What This Means for Homeowners and Buyers

If you’ve got a mortgage, potential rate cuts could make your repayments more affordable, especially if you're on a variable rate. It might also be a good time to talk to your lender about your current deal—you may be able to refinance to a better rate and save even more.

For those looking to buy, lower rates can improve your borrowing power, making it easier to enter the market. But remember—house prices may also start to rise again as demand increases.

Tip: Every household is different, so it’s worth speaking with a mortgage broker or financial advisor to understand how rate changes will affect you directly.

This blog provides general information only. Always seek personalised advice before making financial decisions.