A rate cut doesn't guarantee savings. When the RBA cuts the cash rate, lenders are not required to pass it on, and many delay or reduce the cut. Acting early could save you hundreds.
Don't wait for your bank's email. Banks move on their terms. While they're deciding, you could already have a sharper rate through a broker who compares the market.
One bank = one deal. Your lender's "loyalty discount" might still be far from the most competitive offer. An Aussie Broker can check 4,000+ loan options from 25+ lenders to find you a better fit.
Waiting on your bank can cost you. Even a few weeks at a higher rate can cost you more than you think. Securing a lower rate now means locking in savings sooner.
One call, big difference. With Aussie, one conversation gives you market-wide options, negotiation power, and an easier path to switching, so you keep more money in your pocket.
If you've got a home loan, you've probably lived through this before. The Reserve Bank cuts the cash rate, the headlines promise good news for borrowers, and you start looking forward to a lighter repayment. But when your next statement arrives, nothing has changed.
When the Reserve Bank of Australia (RBA) cuts the cash rate, you might expect your repayments to drop straight away. However, here's the reality: banks aren't obligated to pass on the full cut, most won't apply it automatically, and many only make the change if you request it, sometimes weeks or even months later. That delay can cost you hundreds in missed savings.
And even if you do call, you're still only getting your bank's one offer, which might not be the most competitive deal in the market.
The good news? There are simple steps you can take to check if you're getting the full benefit of an RBA cut and to make sure you're not missing out on the savings you deserve.
How do RBA cash rate cuts affect your mortgage?
When the RBA cuts the cash rate, banks aren’t obligated to pass on the full amount, and most won’t apply it automatically. Many only make the change if you call, which can mean weeks or months of missed savings.
The cash rate is the interest rate the RBA charges banks for overnight loans to each other. While a cut should, in theory, make borrowing cheaper, each lender decides on how much of the cut to pass on, when to apply it (often 2–4 weeks later, sometimes longer), and whether to act at all.
Delaying or reducing the cut boosts lender profit margins but costs you money. Even if your lender applies the cut, it’s still just one offer from one bank, which may not be the most competitive deal available.
The bottom line: An RBA rate cut is your cue to review your home loan, not wait for your bank. One call to an Aussie Broker gets you access to 25+ lenders and over 4,000 loan options so you can lock in savings sooner.
You might also be interested in: What experts predict will happen with interest rates in August 2025
Why banks don't always pass on the full RBA cash rate cut
When the RBA cuts the cash rate, it's easy to assume your lender will match it. However, many borrowers spend weeks (or even months) paying more than necessary because their bank delays, trims, or ignores the cut altogether. Why do banks not always pass on the full rate cut?
They're not legally required to. Banks can choose to pass on all, part, or none of the cut and decide when they'll do it. That means they can keep a slice of the savings to protect their margins.
They move faster when interest rates rise. Rate rises often hit your loan within days. Cuts? They can take weeks to filter through, and every extra week you're at the higher rate is money you'll never get back.
Funding costs aren't just about the cash rate. Banks also draw on overseas markets and fixed deposits. These costs don't always align with the RBA, and lenders sometimes use this as justification for holding back, even when their overall costs have fallen.
Competitive positioning matters. If other banks delay, your lender may feel no pressure to act quickly. Some pass on only part of the cut to appear "competitive" while keeping more for themselves.
A cash rate cut is your green light to take action. Waiting could leave you paying more than you need to for weeks or even months.
Why you shouldn't wait for your bank to pass on the rate cut
When the RBA cuts, weeks of savings can slip away.
It sounds simple: rates drop, you pay less. But in reality, many lenders delay passing on the cut, or don't pass it on in full. Every week you wait could mean hundreds in missed savings. So, it is essential to keep these realities in mind.
No obligation to pass it on. Lenders can share all, part, or none of the cut. It's their call.
Delays cost you. Some take weeks or months to apply changes, keeping the savings in their pocket, not yours.
One lender, one deal. Even if they do pass it on, you're still only seeing one option, not the sharpest in the market.
A Sydney family learned this the hard way when their bank passed on just 0.05% of the rate cut nearly a month late. One call to an Aussie Broker secured a loan with a full 0.25% cut in days, saving over $2,000 in the first year**.
As one Aussie Broker says, "My client thought their rate had dropped. They were still paying 0.6% more than needed. One call and we saved them over $100,000*."
The takeaway? Don't wait for your lender's update. One call to an Aussie Broker could mean weeks or even months of extra savings in your pocket.
You might also be interested in: Which banks have passed on the RBA's latest interest rate cut?
How to make sure you don’t miss out on an RBA rate cut
When the RBA cuts the cash rate, it's your chance to get ahead. The faster you move, the sooner you can lock in a lower rate and avoid paying more than necessary for weeks (or even months).
Here's how to take control.
Know your current rate. Check your latest home loan statement or log in to your online banking. Make a note of your rate to the decimal point. If it's been a while since you looked, you might be surprised at how far it's crept from the most competitive deals in the market.
Compare with what new customers get. Lenders often reserve sharper rates for new borrowers. Jump on your lender's website and check the advertised rate for your type of loan. If it's lower than what you're currently paying, that's a sign you can do better.
Don't just wait for the email. Your bank doesn't have to pass on the full cut, and they can take their time making a decision. By the time they tell you, you might have already missed out on hundreds in savings.
Call your lender. Ask if they'll match the lowest rate they're offering new customers. Sometimes, a single phone call can help you secure a better deal. But remember, you’re still only getting one offer from one lender. Talk to a broker to see the full market and know you’re locking in the most competitive deal, not just the one your bank puts on the table.
Speak to an Aussie Broker for real choice. One conversation with an Aussie Broker gives you access to more than 4,000 loan options from 25+ lenders. We'll find a sharp rate for your situation and handle the paperwork so you can get on with your day.
Keep your rate in check. Once you've made the move, keep an eye on it. The Aussie App's Live Rate and Live Equity tools make it easy to track your loan's performance, so you're ready to act next time the RBA makes a move.
You might also be interested in: The RBA interest rate decision for August 2025
Why choose Aussie when rates change and equity grows
When the RBA moves, you shouldn't have to wonder if your bank will pass on the savings to you. One call to an Aussie Broker can put you in control fast.
No chasing multiple banks or repeating paperwork. Aussie will compare over 4,000 loan options from 25+ lenders, negotiate on your behalf, and guide you through the switch from start to finish.
Many borrowers also don't realise how much equity they've built or how it could help them get ahead. The Live Equity tool in the Aussie App shows you exactly what's available so you can plan your next move with confidence.
Since the last RBA decision, Aussie Brokers have helped thousands of Australians save hundreds of dollars a month or shave years off their mortgage. That's real money staying in real households, not in a bank's bottom line.
Real stories: Aussies who didn't wait
Sometimes, the clearest way to see the value of acting quickly is through real-life examples. Here are two case studies that show the difference between waiting for your bank and taking control.
A Melbourne couple on a variable rate with a Big 4 lender saw the RBA cut the cash rate by 0.25%. Confident their bank would pass it on, they waited. Here's what happened in their situation:
Unfortunately, their lender eventually passed on just 0.10% of the cut and took five weeks to apply it. By then, they'd missed out on almost $400 in savings*. When they called, the bank stated that they were already at a "competitive rate" and refused to offer further discounts.
The takeaway? Waiting for the bank to act cost them both time and money.
Another customer took a different approach. After an RBA cut, a Perth homeowner rang their bank first. The bank offered a small 0.05% drop and nothing more. Instead of settling, they contacted an Aussie Broker the same day. Their broker compared over 4,000 loan options from 25+ lenders, found a sharper rate with the full 0.25% cut applied, and had approval within a week.
That switch saved them more than $1,800 in the first year*.
The bottom line? Even if you call your bank, you will still only receive one offer. Acting early with an Aussie Broker means seeing the entire market, not just what your lender decides to present.
On the other hand, a Brisbane family heard the same RBA cut and called their Aussie Broker within days. Fortunately, their broker compared over 4,000 loan options from more than 25 lenders. They found a loan with the full 0.25% cut applied and a sharper ongoing rate than their current lender's most competitive offer.
The switch saved them over $2,100 in the first year*, with no out-of-pocket costs.
The takeaway? Acting early with an Aussie Broker meant capturing the full benefit of the cut and improving their long-term position.
Don't let your bank decide your savings.
When the RBA cuts the cash rate, the headlines make it sound like money's about to land straight in your pocket. The truth? Those savings aren't guaranteed, and most lenders don’t pass on the full cut automatically. You still have to call to get it.
And even then, you’re only getting one offer from one bank.
Waiting costs more than you think. Banks move on their terms. Delays of weeks or months can mean hundreds in lost savings, and loyalty discounts are often far from the sharpest rates in the market.
If you’re making one call, make it to Aussie. One conversation opens the door to over 4,000 home loan options from 25+ lenders. We’ll compare, negotiate, and handle the paperwork so the switch is faster and easier for you and you can lock in your savings sooner.
FAQs about RBA rate cuts and your home loan
When the RBA cuts the cash rate, it can sound like your repayments will drop straight away. The truth is, it's not always that simple. Here are the answers to the questions we hear most frequently.
Does my bank have to pass on the cut?
No. Every lender decides for themselves if they'll pass on the cut and how much. Some pass on the full amount, others only part of it, and some not at all. Their decision often comes down to funding costs, profit margins, and what their competitors are doing.
The key thing to remember? It's your money, so don't just assume they're giving you the most competitive deal.
How quickly will my repayments change?
It could be almost immediate or take more than a month. Some smaller lenders act more quickly, while larger banks can take their time. Every week you wait is another week of paying the higher rate, so check your lender's announcement and confirm the date your new rate will take effect.
What if my lender delays or only passes on part of the cut?
Act quickly. Call your lender and ask them to match the rate they're offering new customers. If they can't (or won't), speak to an Aussie Broker. We'll compare over 4,000 loan options from 25+ lenders and find you a competitive option without you having to shop around yourself.
Should I stay variable or fix my rate after a cut?
It depends on your goals. A variable rate gives you flexibility if rates drop again, while fixing gives you certainty over your repayments for a set term. The right choice depends on your budget, plans, and your perspective on market changes.
An Aussie Broker can guide you through the pros and cons, enabling you to make an informed decision with confidence.
Will my repayments automatically go down?
Sometimes. Some lenders will lower your minimum repayment when they pass on a cut. Others will keep it the same, which means you'll pay off your loan faster without even noticing. Either way, check your statement and update any direct debits so you know exactly where your money's going.