RBA rate cut: Is now the time to refinance?
The RBA has cut rates by 0.25% for the second time this year and much to the relief of borrowers across Australia most banks and lenders are following suit.
So while for many home owners with variable rate mortgages this means lower monthly repayments, it also means loan serviceability requirements will reduce and for some, this opens up the opportunity for you to refinance.
And this could mean even bigger savings, especially if you’ve been stuck with an uncompetitive home loan rate.
How much could you save?
Let’s say you are currently with a Big Four lender. The average variable home loan rate for a $500,000 loan with the Big Four according to our database is 6.40% p.a.
If you were able to switch to a rate 0.90 basis points lower (5.50% p.a.) your monthly repayments would be $275 cheaper. And over the life of the loan (25 years) you’d pay a whopping $82, 327 less interest.^
That’s definitely a saving worth considering switching for.
So if you’re keen to find out how much you could save by refinancing, below are some of the top home loans reviewed by our editors for you to compare against your current home loan rate.
^As at 28 May, 2025. Based on a $500,000 owner occupier variable home loan over 25 years (P&I, 80% LVR) in the Mozo database. Savings calculations using the Mozo home loan comparison calculator.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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