RBA Interest Rate Cut to 3.60%: How Much Can You Save?

Borrowers around Australia have just been handed some breathing room, with the Reserve Bank of Australia (RBA) delivering its third RBA rate cut of the year. The latest 25-basis-point trim brings the official rate down to 3.60%, offering a brighter outlook for households juggling rising costs.

Why the RBA Interest Rate Cuts Again?

After surprising markets with a pause last month, the RBA Board has now followed through with expectations by trimming the cash rate to help ease cost-of-living pressures. Governor Michele Bullock said the decision was unanimous, noting that underlying inflation has continued to track back towards the Bank’s 2–3% target range.

The RBA has faced mounting pressure from community groups, business leaders, and mortgage holders to deliver relief. While inflation has cooled, households across Sydney, Melbourne, and regional towns are still battling higher grocery bills and utility prices.

How Much Could You Save from the RBA Rate Cut on Your Mortgage Repayments? 

If you’re on a variable home loan, the savings could be meaningful. Assuming lenders pass on the full cut, here’s what it looks like in practical terms:

• On a $500,000 loan (25 years, principal and interest), monthly repayments could drop by about $76. That’s $912 per year.
• On a $750,000 loan, you’re looking at a monthly saving of around $114, or $1368 annually.
• With a $1 million loan, repayments could decrease by roughly $152 per month, or $1824 per year.

This relief can add up for families in mortgage belts from western Sydney to Brisbane’s outer suburbs, where higher debt levels have stretched budgets thin.

Why Lender Policies Still Matter?

One catch: not every bank automatically lowers repayment amounts when rates fall. Some lenders leave the repayment amount unchanged, meaning more of your money goes towards reducing the principal faster. While that helps long-term, you can ask your lender to adjust repayments to free up more cash in your budget right now.

In past RBA interest rate cuts, major banks like CBA and NAB announced changes within a week, while some smaller lenders took longer to confirm. Checking your bank’s announcement this month could save you from missing out.

Still Feeling Mortgage Stress?

For many families, even with this RBA interest rate cut, the relief might feel like a drop in the ocean. According to CoreLogic, mortgage repayments still sit higher than when most households first signed their loans in the late 2010s. Rising insurance premiums and council rate increases add extra strain.

If you’re feeling the squeeze, it may be the right moment to explore options:

• Renegotiate with your current lender to see if they’ll sharpen your RBA interest rate cuts.
• Refinance to a new loan with a lower interest rate or better terms.
• Consolidate debts to simplify repayments and ease monthly outgoings.

Our team regularly works with families from Wollongong to Newcastle, helping them review their loans and uncover savings.

Osinski Finance: What the RBA Interest Rate Cut Means for You

The recent RBA rate cut can shift the lending landscape quickly. If you’d like a clear view of how the RBA’s cash rate cut to 3.60% could affect you, the team at Osinski Finance is here to help. Whether you’re reviewing your home loan, looking at investing in a property, or exploring options for refinancing your home loan, we’ll guide you through the best strategies. Reach out for a personalised home loan health check and put some certainty back into your budget.

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