RBA Rate Reduction – What It Means for You
Well, it’s not every day we get a win on the money front, but this month brought a little cheer, the Reserve Bank has made a move and reduced the cash rate by 0.25%. Cue the headlines, debate, and group chat discussions, but in real terms, for homeowners, it could mean a slightly lighter repayment, and who doesn’t love that?
Let’s be honest, in a cost-of-living crisis, even a small cut can feel like a big win. A 0.25% drop might not sound like much, but when you stretch that over the life of a 30-year loan, it really adds up. The good news? Every single lender on our client list passed on the full rate cut, no half measures this time!
When Does the Rate Cut Kick In?
Each lender has a different date when the rate change takes effect. Some have already implemented it, while others will follow suit shortly. Here's a list of the lenders many of our clients use, and when their new rate starts:
- ANZ – 30th May
- NAB – 30th May
- Macquarie – 23rd May
- P&N Bank – 10th June
- Bankwest – 30th May
- Westpac – 3rd June
- ING – 3rd June
- UBank – 29th May
- Commonwealth Bank – 30th May
- Pepper Money – TBC
- AMP – 2nd June
- Bank Australia – 2nd June
- Mystate – 5th June
- AFG Bright – 30th May
- Bank of Queensland – 6th June
- Suncorp – 30th May
- Beyond Bank – 3rd June
- ME Bank – 7th June
- St George – 3rd June
What Do You Need to Do?
Here’s the bit they don’t always explain:
Some banks will automatically reduce your repayments, meaning you’ll pay a little less each fortnight or month. Others will keep your repayment the same unless you contact them which means you could pay off your loan faster without even trying. Win-win, if you ask us.
So if your bank is one that requires you to opt in to the lower repayment, and you’d rather enjoy the cashflow, now’s the time to give them a quick call or log into your banking app and make the adjustment. Or, if you’re in your “let’s smash the home loan” era, just let those extra dollars quietly chip away at the balance.
Need Help?
As always, if you’re not sure what your lender is doing, or whether your current rate is still competitive, reach out. We can let you know if you're on a good deal, what your new repayment should be, and whether it’s worth making a move. Otherwise we are always in touch at the annual review mark.
Sometimes small changes now can mean big savings later — and that’s what we’re here for.
