After years of rising interest rates, the Reserve Bank of Australia (RBA) has shifted to a cautious easing cycle. As of September 2025, the cash rate sits at 3.60% – the first cuts in more than four years – offering relief to millions of variable-rate mortgage holders.
NAB and Westpac are the last of the major banks to finally lower their variable rate home loans this week, two weeks on from the Reserve Bank’s decision to cut the cash rate by 0.25%.
A home loan that rewards you for your loyalty, does away with pesky fees, and has a low variable rate that’s below the market average. It may not sound like a home loan from a big 4 bank, but it is. Well, sort of.
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While there’s a lot of uncertainty in the global market right now, it could be an opportunity for you to make some smart money moves with your mortgage.
Australia’s central bank has slashed the cash rate to 3.60%, the lowest it’s been in two years, providing mortgage holders with extra relief following cuts in February and May. But while households rejoice, the Reserve Bank of Australia (RBA) warns that slowing productivity and modest wage growth could weigh on long-term economic growth, signalling that cheap credit is not a cure-all and that the economy faces deeper structural challenges.
Shopping for a home loan shouldn’t feel like stepping back in time. Yet, for many Australians, refinancing still means printing stacks of paperwork, booking in-person appointments, and bouncing between phone calls. It’s no wonder the Big Four banks continue to dominate – even with typically higher interest rates – when switching can feel like such a hassle.
Looking to buy a home for around $900,000? In today’s market, a home at this price point can be found in many areas of regional Australia as well as towards the outskirts of our major cities, while you can buy a unit for around $900,000 in our capitals.
The Reserve Bank announced it would slice 25 basis points off the cash rate at its August meeting, and while most banks are making customers wait up to two weeks before getting rate relief, two lenders have passed on the cut immediately.
Bank of Queensland (BOQ) if offering a standout two-year fixed home loan rate of 4.89% p.a. (5.62% comparison rate*) for owner-occupiers – the lowest 2-year fixed rate in Mozo’s database.
With a Reserve Bank of Australia (RBA) cash rate cut all but locked in for Tuesday 12 August, the race is on to see which lenders will deliver relief to borrowers first – and which will drag their feet. A 0.25 percentage point cut could save the average mortgage holder hundreds of dollars a year, but history shows not every bank passes it on quickly, or in full.