The Reserve Bank of Australia (RBA) reduced the cash rate by 0.25% on Tuesday 18 February 2025. Following this, many lenders have lowered their variable interest rates, making mortgage repayments lower.
The mortgage calculator can help you see the impact of a rate cut (or rise) on your mortgage repayments and help you plan accordingly.
For example, if you have a $500,000 mortgage with an interest rate of 6.15%, your current repayments are around $3,056 per month. If your interest rate was to decrease by 0.25%, it reduces your repayment to $2,976 per month, saving you around $80.
If this applies to you, consider how you will use the extra money. Can you pay down a credit card or buy now pay later debt? Start a savings habit? Or can you keep paying your mortgage at the higher amount, to help pay off your mortgage sooner?
Every dollar counts, so plan how you will best use this extra money.
Work out your home loan repayments and compare different rates.
Ask your lender for financial hardship assistance
If you’re having trouble managing your repayments, there is help available.
Financial hardship is when you are unable to make a loan repayment. Financial hardship assistance can be an arrangement with your lender to alter your repayments or set up a payment plan.
When you ask for help, your lender must consider you for financial hardship assistance. Your lender will assess your situation and work out what help is available.
Asking for help may be a bit uncomfortable but know that your lender is there to assist you. The earlier you seek help, the more options you'll have.
For those who need additional support, the National Debt Helpline is available on 1800 007 007.