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.
Refinance home loan deals
Unloan - Variable Home Loan
- New rate cut live!
- 5.49% p.a. variable rate (5.40% p.a. comparison rate*)
- Zero upfront or ongoing fees
- Low cost home loan winner - Mozo Experts Choice Awards 2023, 2024 & 2025^
Unloan’s Variable Home Loan has taken out a low cost home loan award for an impressive third year running in the Mozo Experts Choice Awards^. Built by CommBank, Unloan offers owner-occupiers a super low 5.49% p.a. variable rate (5.40% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for loans of up to $10M. Minimum 20% deposit.
NRMA Insurance Variable Offset Home Loan
- 5.53% p.a. variable rate (5.74% p.a. comparison rate*)
- Zero application fees to pay
- Free additional repayments and online redraw
Enjoy a competitive interest rate on up to a 30 year loan term with the NRMA variable offset home loan. There is no application fee to pay and in addition to the 100% offset you can make unlimited additional repayments to pay your home loan off sooner. You’ll also get free online redraw. 10% minimum deposit and $15 monthly service fee. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
UBank - Neat Home Loan
- Rate cut now live!
- Variable rates from 5.64% (5.66% comparison rate*) - min 40% deposit
- Fast and paperless online application process
- Free extra repayments
UBank has made a name for itself as one of Australia's best value online lenders, and its new Neat Home Loan is a case in point. This low cost variable home loan rewards borrowers with lower loan-to-value-ratios (LVRs) with competitive rates, while also being light on fees. Features include free extra repayments and redraw. Plus, UBank is backed by NAB so you get all of the savings an online lender can offer, as well as the security of big bank backing.
BCU Bank Fixed Rate Home Loan
- 5.49% p.a. for 2 years (5.77% p.a. comparison rate*)
- No establishment or annual ongoing fee
- Just 5% deposit required
Member-owned BCU's fixed rate home loan has no establishment fee, no ongoing annual fee, and competitive rates. You can lock in up to 5 years (rates may vary) and there is an option to make weekly, fortnightly or monthly repayments. During the fixed period you can also make extra repayments of up to $25,000. The loan is also available with just a 5% deposit. Other fees may apply. No offset account.
^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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