The Reserve Bank of Australia (RBA) has held the official cash rate at 3.85% in July 2025, despite expectations of a potential cut. While many economists predicted a small decrease, the RBA is taking a “wait and see” approach as it monitors inflation and broader economic trends.
So, what does this mean for your home loan?
🏠What the Cash Rate Hold Means for Borrowers
Variable interest rates are likely to remain steady in the short term.
Lenders may still offer competitive refinance deals to attract customers.
A rate cut could still happen later in 2025 if inflation continues to ease.
đź’ˇ Now is a smart time to review your loan structure or consider refinancing.
📉 Example: How Much Could You Save by Refinancing?
If you're on a variable rate and refinancing leads to just a 0.25% lower interest rate, you could save:
đź’µ Around $80/month on a $500,000 loan
đź’µ Over $24,000 across a 25-year loan term
Even a small reduction in interest can have a big long-term impact.
🔍 Why the RBA Is Holding Off on Rate Cuts (for Now)
The RBA is balancing two key goals:
Supporting the economy through steady borrowing conditions
Keeping inflation under control in a post-COVID environment
This pause gives them more time to assess how recent global and domestic factors are playing out, such as:
Wage growth
Consumer spending
Property market trends
🧠What Should You Do Next?
If you're a homeowner or potential buyer, here's what we recommend:
✅ Book a free home loan review – Find out if your current rate is still competitive
✅ Consider refinancing – Lenders are still offering strong incentives
✅ Stay informed – Rates may change quickly in the months ahead
💬 Chat with our Gardian Finance team — we’ll help you make sense of it all and uncover real savings.
đź“ž Ready to Make Your Home Loan Work Harder?
Get expert guidance with no pressure. Whether you're buying, refinancing or just checking your options, we’re here to help.
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Contact Gardian Finance today to book your free home loan health check.
