If you’re a homeowner or planning to be one, RBA decisions can feel like a rollercoaster. Whether rates move up, down, or stay on hold, understanding what it means for your loan—and how to respond—can save real money and stress.
How RBA decisions affect your loan
- Variable-rate borrowers: Changes may flow through to your lender’s variable rate, impacting repayments within weeks.
- Fixed-rate borrowers: Your rate won’t change during the fixed term, but today’s decision may affect future refinancing or repricing options.
- New borrowers: Lenders adjust pricing and borrowing capacity based on rate settings, risk appetite, and funding costs.
What to do if rates rise
- Review your budget: Update your repayment calculator and cash flow.
- Consider an offset or redraw strategy: Park surplus funds to reduce interest and increase flexibility.
- Explore partial fixes: Split your loan to balance certainty and flexibility.
What to do if rates fall or stay on hold
- Negotiate a better rate: Loyalty doesn’t always pay—ask for a repricing.
- Consider refinancing: If a lower rate or sharper package is available, do the math on switching costs vs. savings.
- Revisit goals: Falling repayments may free up cash for renovations, investing, or accelerating your loan payoff.
Signals to watch (beyond the headline)
- Serviceability buffers: Even if rates are stable, lender assessment rules can change.
- Product features: Offset, redraw, fee waivers, and cashbacks may shift with market conditions.
- Borrowing capacity: Income changes, existing debts, and living expense benchmarks all matter.
You can’t control the RBA—but you can control how prepared you are. A quick loan health check can reveal savings and strategies tailored to your situation.