RBA Slashes Cash Rate, Savvy Homeowners Could Save Thousands

The Reserve Bank of Australia has delivered two rate cuts in just three meetings, bringing the official cash rate down to 3.85 per cent.

This move is expected to ease mortgage stress and stimulate broader economic activity.

According to Finder's RBA Cash Rate Survey, 88% of experts anticipated this decision.

The impact on homeowners will be immediate, with the average Australian owner-occupier home loan now sitting at $659,920 (ABS, March 2025).

Assuming lenders pass on the reductions in full, borrowers could save up to $213 less per month, or $2,553 a year.

Graham Cooke, Head of Consumer Research at Finder, noted that 'two cuts might not be enough to ease the spike in mortgage stress we've seen since rates started climbing again in May 2022.'