February 2025 saw the Reserve Bank of Australia (RBA) lower the official cash rate for the first time since 2020. The cut to 4.1% is a 0.25% reduction from the 4.35% it had held since 2023 and signals the RBA’s shift towards stimulating economic growth. Whether this is a small relief or the first cut of many remains to be seen.

This offers potential relief for homeowners, as variable mortgage rates are likely to decrease and ease repayment pressures. Whether fixed rates become more competitive is still uncertain.

What is certain is that you should discuss any rate changes with your lender, to understand their specific impact on your circumstances. If you’re unsure how to approach this, give us a call.

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