RBA Rate Cuts: What It Actually Means for Your Mortgage

The Lender's Discretion

Banks and lenders are not legally required to pass on RBA rate cuts in full, or at all. They balance their cost of funding, profit margins, and competitive positioning when deciding how much of a cut to pass on to their customers.

Variable vs. Fixed Rates

If you are on a variable rate, your lender will usually announce their decision within a few days of the RBA meeting. If you are on a fixed rate, a cash rate cut will have no impact on your current repayments, but it may lower the rates available when your fixed term expires.

Don't Wait for the Bank to Act

If the market is moving down, the most competitive lenders will often move first to attract new business. If your current bank is slow to pass on cuts, it's a clear signal that it's time to shop around.