If you’re wondering whether this cut is significant beyond just your monthly repayments, here’s a look at how much you could save over the life of your loan.

The Real Savings Over 20 Years

For a mortgage between $600,000 and $700,000, the new lower rate can add up to thousands in savings:

• $600,000 loan → Monthly repayment drops by $86 → $20,660 saved over 20 years
• $650,000 loan → Monthly repayment drops by $93 → $22,382 saved over 20 years
• $700,000 loan → Monthly repayment drops by $100 → $24,103 saved over 20 years

That’s a significant portion of their salary for many Australians—simply by keeping repayments the same after the rate cut!

How to Maximise Your Savings

Instead of reducing your repayments, consider keeping them at the higher amount from before the rate cut. This strategy means:

✅ Paying off your mortgage faster

✅ Reducing the total interest you pay over the loan

✅ Building a buffer in case rates rise in the future

Is Now a Good Time to Refinance?

If you’re on a variable loan, check with your lender to ensure you’re receiving the full benefit of this rate cut. Some borrowers may also find it’s a great time to review their mortgage options and consider refinancing to a lower rate.

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The figures above are based on general calculations and do not account for individual financial circumstances. 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.