Check how does your business rate

Take the Quiz
Call Us

RBA to drop cash rate again… SO WHAT? How does it actually impact YOU?

Most pundits expect the RBA to cut the cash rate again this year. Some even predict the cash rate will fall to 1.5%. This gets mortgage holders and property investors excited.

The question is… why?

Obviously new investors can get a great deal, but I challenge people to look at the rate decision differently.

What’s the actual impact for existing mortgage holders? Do you automatically get this new rate cut (and the previous cuts) passed on to you in the form of a reduced mortgage repayment rate?

The answer is, not necessarily.

The cash rate only refers to the rate that interest is applied to savings deposits. Banks are not obliged to pass on the rate cut to mortgage holders.

For those banks that do pass on the rate, you need to be aware that not all products receive the full rate cut – so you need to be vigilant to ensure you’re getting the full benefit.

The real question is – why wait for the RBA decision before taking action?

Why sit around waiting for the RBA to cut the cash rate before you decide to save yourself money? Even a 0.10% reduction on the average loan size can save you $16,000 (based on the current average loan size in Australia of $330,000). That money is far better off in your pocket rather than the banks’.

So don’t wait for a discount – go out and ASK for one. Or better still, let us use our skills, experience and buying power to negotiate on your behalf.

I’m available any time you want to chat about your finance needs, and I hope to meet with you soon.

Marios Rokka

Director, The Practice Finance Solutions


Marios has over 16 years’ experience in the finance sector. His passion is helping Australians with home affordability – helping them to reduce existing debt, or sourcing the right product at the best rate that will save them thousands.

Speak to Marios today to get a free review of your mortgage strategy: (03) 8888 4000 or finance@thepractice.com.au.