What Happens if the RBA 25bp Rate Cut?
If the RBA decides on a 25 basis point (0.25%) cut, the cash rate would move from 3.85% to 3.60%. Here's what that means for mortgage repayments.
Current cash rate
3.85%
Rate after 25bp rate cut
3.60%
-25bp
Mortgage repayment impact
Based on a 30-year principal & interest loan with 2.5% bank margin above the cash rate.
| Loan size | Current | After 25bp rate cut | Change |
|---|---|---|---|
| $300,000 | $1,867/mo | $1,818/mo | -$49/mo |
| $500,000 | $3,111/mo | $3,030/mo | -$81/mo |
| $750,000 | $4,667/mo | $4,545/mo | -$122/mo |
| $1,000,000 | $6,222/mo | $6,060/mo | -$162/mo |
Which meetings price a 25bp rate cut?
| Meeting | Probability |
|---|---|
| June 2026 | 2% |
| September 2026 | 6% |
| November 2026 | 4% |
| December 2026 | 9% |