With the Reserve Bank holding steady and major banks revising their forecasts, the outlook for home loan rate cuts in 2025 is shifting. Here’s what it could mean for your mortgage.
The question on many homeowners’ minds right now is: Will we see more home loan rate cuts in 2025? The Reserve Bank of Australia (RBA) has left the cash rate unchanged in recent months, and major lenders are becoming more cautious about predicting further reductions this year.
Although earlier in the year we saw cuts in February, May, and August, the RBA has adopted a more cautious stance in recent months, particularly following a spike in inflation during October. As a result, most economists now believe that further home loan rate cuts in 2025 are becoming increasingly unlikely.
But what does this mean for your mortgage? And are there other ways you can take advantage of a better interest rate?
Current Forecasts for Home Loan Rate Cuts in 2025
It’s becoming clear that the much-anticipated home loan rate cuts in 2025 might not materialize as expected.
Several of Australia’s big banks have scaled back or delayed their rate cut expectations:
- NAB has withdrawn earlier predictions of rate cuts in November and February, now forecasting the cash rate will stay unchanged until May 2026.
- Commonwealth Bank has revised its outlook, no longer expecting a November rate drop, with February 2026 now looking more likely.
- ANZ also no longer anticipates further cuts in 2025, pointing to early 2026 as a more realistic timeframe.
- Westpac, however, remains optimistic, holding onto the possibility of a 0.25% cut in December 2025.
This change in sentiment among banks suggests the Reserve Bank’s current strategy of waiting to observe how earlier rate cuts are impacting inflation and consumer spending is having an effect.
Why Are Home Loan Rate Cuts on Hold?
The RBA’s “wait-and-see” approach is largely a response to October’s unexpected rise in inflation, which cast doubt on the short-term viability of further rate cuts. With inflationary pressures still present, the RBA is hesitant to loosen monetary policy too soon.
For homeowners hoping for lower mortgage rates, the pause on home loan rate cuts in 2025 could be disappointing. However, there may still be options available that can ease your mortgage burden without needing to wait for the RBA to act.
Lenders Are Reducing Rates Independently
Even without a change to the official cash rate, lenders have been making competitive moves in the mortgage market.
Financial comparison site Mozo reports that several lenders reduced their variable home loan rates in September 2025, reflecting a more aggressive push to attract new customers.
For example, a borrower with a $660,000 home loan could save around $100 per month, or $1,195 per year, by switching from a 6.10% rate to one at 5.85%.
What’s more, Canstar reports that a competitive variable rate for owner-occupiers currently sits around 5.25%—much lower than many existing loans.
This trend underscores that you don’t need to rely solely on the RBA to save money on your home loan. Competitive refinancing options may already be available.
How You Can Cut Your Own Home Loan Rate
If the chances of another official home loan rate cut in 2025 are slim, taking control of your mortgage rate becomes more important than ever.
Refinancing can be a powerful way to lower your monthly repayments and potentially save thousands over the life of your loan. Many borrowers don’t realise they’re paying more than they need to.
Here’s what you can do:
- Compare rates: Look at what other lenders are offering. If your current rate is above 5.50%, you may be paying too much.
- Speak to a mortgage broker: They can assess your financial situation and help you find a more competitive rate.
- Negotiate with your current lender: Sometimes, simply asking for a better rate can work—especially if you’ve been a loyal customer.
Don’t Wait for Home Loan Rate Cuts – Act Now
While we may not see more home loan rate cuts in 2025, that doesn’t mean you’re stuck with your current repayments. There are plenty of lenders actively reducing rates to win new business.
Whether you’re on a variable or fixed rate, it’s worth checking your mortgage health. A simple refinance could be the rate cut you’ve been waiting for.
Final Thoughts on Home Loan Rate Cuts in 2025
Despite earlier optimism, the chances of additional home loan rate cuts in 2025 are diminishing. With inflation ticking higher and the Reserve Bank taking a cautious stance, it’s unlikely we’ll see another drop before the end of the year.
But that doesn’t mean you’re powerless.
The mortgage market is competitive, and many lenders are offering lower rates—even without central bank action. By reviewing your current rate and considering refinancing, you could secure significant savings now rather than waiting for the RBA to move.
Take Control of Your Home Loan Today
Don’t wait for the Reserve Bank to deliver the savings you need.
Contact us now to find out how much you could save by refinancing your mortgage. Let us help you find a better home loan deal—because a lower rate might be closer than you think.
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Connect with Louisa on Linkedin.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
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