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When the RBA changes the cash rate, lenders typically pass the change on to variable rate home loans within 1–2 weeks. A 0.25% RBA cut doesn't always mean a 0.25% mortgage rate cut — lenders make independent decisions, and sometimes only pass on a portion.Fixed rate loans are not
For variable rate loans, lenders typically adjust rates within 1–2 weeks of an RBA decision. Your next repayment after the adjustment will reflect the new rate. Fixed rate loans are not affected until the fixed period ends.
Fixing locks in your current rate, protecting against further increases. However, if rates subsequently fall, you miss the benefit. Fixed rates also limit extra repayments and offset account use. Consider splitting your loan instead of fixing entirely.
In the most recent cycle, the cash rate went from a record low of 0.10% (2020-2022) to 4.35% (2023) — a 4.25% increase. On a $600,000 loan, this increased monthly repayments by approximately $1,620. The current rate is 4.10% as of 2026.
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