Australian Borrowers Face Delays in Rate Cut Relief Despite RBA Decision

Australian mortgage holders may have to wait up to two weeks before feeling the impact of the Reserve Bank’s latest 0.25% interest rate cut. While 20 lenders have announced they will pass on the cut, only two have done so immediately, with most major banks delaying the relief until late August.
For a $750,000 mortgage, the cut could reduce monthly interest payments by about $111 once implemented. However, the delay means customers of major banks continue paying millions in extra interest collectively during the waiting period. Some lenders are acting faster — for example, certain banks are adjusting rates within just three days — providing borrowers with quicker savings.
The RBA’s three rate cuts this year have already reduced repayments for many households by hundreds of dollars each month. Analysts expect more lenders to offer variable rates below 5% by the end of August, and further cuts could push rates even lower. The RBA governor has indicated that two or three additional cuts remain possible if inflation continues to decline.
Lower rates are driving strong demand in the housing market, with both homebuyer and investor loans rising significantly since the start of the year. Many borrowers are choosing variable rates over fixed rates, anticipating further reductions ahead.