Homeowners holding out for a rate cut today have been urged to see if they could create their own discount by refinancing to a better deal, with fixed rates as low as 4.79% on offer.
A 0.25% rate cut would slash repayments on an average loan of $678,000 by around $111 a month or $1332 a year, according to Compare the Market’s analysis.
But Compare the Market Economic Director, David Koch says some homeowners could unlock even greater savings by asking their broker to shop around.
“Big groans everywhere today, because so many homeowners have been holding out for another rate cut and the Reserve Bank hasn’t come through,” Mr Koch said.
“While it is disappointing, it’s not impossible for many homeowners to start saving. The average interest rate for outstanding loans is 5.76%. Right now, there are variable rates from 5.34% – that could be a saving of about $179 a month, surpassing what a typical RBA cut would deliver.
“Plus, there are two-year fixed rates as low as 4.79%. That’s the lowest we’ve seen in years and could be a smart option if you’re looking to start saving now and lock in some certainty for the months ahead.”
More Australians are taking power back into their own hands by comparing and switching to cheaper rates. Around 65,000 home loans were refinanced by borrowers moving to different lenders in June 2025, a 25% increase on the previous year.
Around 43,000 loans were refinanced with the same lender, up 30.7% for the year, according to the Australian Bureau of Statistics.
Mr Koch says homeowners shouldn’t hesitate to negotiate.
“Take some inspiration from Madonna: be a Material Girl (or guy) and don’t settle until you’ve found a better deal,” he said. “Because the banks with the cold hard cuts are always Mister Right.
“Don’t wait for the Reserve Bank to do you a favour,” Mr Koch said. “Take control, compare your options, and make the banks work for you. Because in this game, the biggest savings go to those who hustle.
“Better yet, if you don’t have the time to make some calls, find a good broker to do the leg work for you and sniff out a great deal.”
Impact of multiple rate cuts on monthly repayments
| Loan size | Impact of a 0.25% rate cut | Impact of x2 0.25% (0.50%) | Impact of x3 0.25% rate cuts (0.75%) | Impact of x4 0.25% rate cuts (1%) |
| $500,000 | $81 | $161 | $256 | $318 |
| $600,000 | $97 | $193 | $307 | $382 |
| $750,000 | $122 | $242 | $384 | $478 |
| $900,000 | $146 | $290 | $461 | $573 |
| $1,000,000 | $162 | $322 | $512 | $637 |
| *Calculations assume an owner-occupied loan with a variable interest rate of 6.3% that is reduced to 5.3% after four 0.25% rate cuts passed on in full by the bank. It assumes a 30-year loan term, with no ongoing fees. This does not take into account the reduction of the loan balance over time. | ||||
For more information or to request an interview please contact:
Sarah Orr | [email protected] | 0401 044 292
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
