Aussie homeowners could be overpaying by hundreds if they’re with a big bank
The Reserve Bank of Australia (RBA) cut the cash rate this month, finally dropping it by 0.25% . They last lifted rates in November 2023. Since May 2022, the cash rate has increased by 4.25%, from 0.10% to 4.35%. We've had only two rate cuts since then (one in February and one in May 2025). As of now, it's now fallen back to 3.85%.^
You could already be overpaying on your mortgage by thousands and now you have a window of time to make sure you’ve got a home loan that’s right for you - or to switch and take advantage of the better deals out there at the moment.
Get Started Now:
Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.
^RBA statement May 2025. *Numbers are based on an average mortgage of $600,000 according to the Lending indicators from the Australian Bureau of Statistics with principal and interest repayments over a 25 year loan term, the average interest rate on Compare Club's panel of over 50 lenders, and the cumulative RBA cash rate decisions announced since May 2022 to date.
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
By refinancing now, you could save tens of thousands over the lifetime of your loan.
"It really is a market where it pays to take action now," Lending Manager Sophie Matthews explains.
"For example, a homeowner with a $600k variable rate mortgage would have seen their repayment rise by an average of $1,850^^ more per month since May 2022. That's an extra $22,320 a year, so for every month a mortgage holder delays reviewing their mortgage, they're paying over $1,850 in 'loyalty tax' to their lender.
Compare Now:
Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.
How does the latest change impact my mortgage?
How can I lock in a lower rate quickly?
Home Loans Australia can help you switch your mortgage to a new lender.
- Refinancing to a cheaper home loan with a lower interest rate can save you thousands over the lifetime of your mortgage.
- We compare home loans from more than 50 lenders across Australia — including some you won’t find via the usual channels.
- Our experts can match you to a lender that fits your needs, deposit and budget.
The bottom line: Don’t overpay on your home loan. Shopping around for the best mortgage rate is easy when you compare with us today.
Last updated on 7th June 2025
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Home Loans Australia partners with Mortgage Broker professionals across the country who have access to over 50 lenders and hundreds of products, with Interest Rates starting from as low as 5.55% (Comparison rate of 6.05%). Comparison Rate is based on a loan amount of $600,000 over a 25 year term. The Comparison Rate is only true for the example given and may not include all fees and charges. Different fees, terms, or other loan amounts may result in a different Comparison Rate. In some situations, customers may not be able to access the interest rate quoted above. The actual interest rate offered to you will be dependent on a review of your circumstances, as well as the panel of lender accreditations available to the Broker you are referred to. Rates and fees will vary from one lender to another, dependent on your individual circumstances, and are subject to individual lender policy, assessment and approval. Speak to a Home Loan Adviser to find out your eligible rates, fees and lender products. Interest Rates are correct as at 21/01/2025. Different terms, fees or other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply and your full financial situation would need to be reviewed prior to acceptance of any offer or product. Rate Comparison is a business name of Beat My Loan Pty Ltd ABN 85 613 044 581. Beat My Loan Pty Ltd is an Authorised Credit Representative (Credit Rep Number 489939) of Alternative Media Pty Ltd ABN 17 149 089 716 (Australian Credit Licence Number 486326).
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