What Happens if the RBA 50bp Rate Cut?
If the RBA decides on a 50 basis point (0.50%) cut, the cash rate would move from 3.85% to 3.35%. Here's what that means for mortgage repayments.
Current cash rate
3.85%
Rate after 50bp rate cut
3.35%
-50bp
Mortgage repayment impact
Based on a 30-year principal & interest loan with 2.5% bank margin above the cash rate.
| Loan size | Current | After 50bp rate cut | Change |
|---|---|---|---|
| $300,000 | $1,867/mo | $1,770/mo | -$97/mo |
| $500,000 | $3,111/mo | $2,950/mo | -$161/mo |
| $750,000 | $4,667/mo | $4,425/mo | -$242/mo |
| $1,000,000 | $6,222/mo | $5,899/mo | -$323/mo |