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.
💡 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:
💵 Around $80/month on a $500,000 loan
💵 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.
📞 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.
