The cash rate is the Reserve Bank’s policy rate. It is not the rate you pay.
The RBA cash rate sets the direction of variable home loan rates. When the Reserve Bank moves the cash rate, lenders usually change their variable rates by a similar amount within weeks, though not always in full; fixed rates follow the market’s expectations instead.
A 0.25 per cent move on a $600,000 loan changes the repayment by roughly $95 a month.
Part of the refinancing guide.
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What moves the number
Choose any that apply. Each shows roughly how much it changes the figure, the way a lender’s assessment would.
is an indicative borrowing figure at today’s typical rates. Lenders typically count around 80% of rental income, which is why an investment purchase can lift your number, your real figure comes from a proper assessment.
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Charles and the team recently assisted me with the refinance of my investment property.
Charles at Links Property Finance made buying our first home so much easier than we expected. As first home buyers, we had a lot of questions around borrowing capacity, our deposit and the different government schemes available to us. Charles explained everything clearly, compared different lenders and kept us updated throughout the whole process. He was always easy to reach and made sure we understood what was happening from pre approval right through to getting our home loan approved. We would definitely recommend Links Property Finance to anyone looking for a mortgage broker, especially first home buyers who want someone to guide them through the process.
Paperwork and finances were never my strong suit. He has made this process as simple and dummy proof for me as humanly possible. This is not the first time I use a mortgage broker, however it was the easiest and most pleasant.
The Reserve Bank publishes the cash rate target and its meeting schedule on its own site, updated the moment a decision is made. That is the authoritative source, so this page sends you there rather than keeping a second copy that could fall behind it.
What the number means for your own loan depends on your balance and remaining term, not on the rate alone. The repayments calculator gives you your figure rather than an average.
Charles Touma, Mortgage Broker.
The effect depends on your balance and remaining term, not on the size of the move alone. The same change in percentage terms costs far more on a large balance with twenty five years left than on a small one nearly paid off.
Rather than reproduce a table that would go stale, put your own balance and rate into the repayments calculator and change the rate figure. That gives you your number instead of an average.
The Reserve Bank keeps the full record of past decisions, with the date and the resulting rate for every meeting.
Rather than maintain a second copy here that could drift out of step with it, this page points at the original: the RBA cash rate table is the authority, and it is always current.
If it rises, check what your repayment becomes before it lands, and check whether your current rate is still competitive rather than assuming it is.
If it falls, ask your lender to pass it on; that request costs nothing and is more often successful than people expect. Either way the useful question is not what the RBA did, it is what your lender is now charging you compared with what you could get.
Not usually. Lenders set their own effective date, commonly a few weeks after a decision, and they notify you separately. If you are on a fixed rate, nothing changes until the fixed period ends.
No. Each lender decides how much of a change to pass through and when. Partial pass-through is common, and the treatment of existing borrowers often differs from the rates advertised to new ones.
Only if you want certainty: fixing is a decision about certainty, not a bet on rates, because nobody can reliably predict the next decision and fixed rates already reflect the market’s expectation. The fixed versus variable guide sets out what fixing commits you to.
Indirectly, yes. Lenders assess your ability to repay at a rate above the one you would pay, so when rates move the assessment moves with them. That is why borrowing capacity can change without your income changing at all.
Eight times a year, on dates the Reserve Bank publishes in advance on its website; the next scheduled date is shown at the top of this page.
General information only, and not a forecast. Figures on this page are maintained manually and may lag a decision; the Reserve Bank of Australia is the authority on the cash rate and its meeting schedule.
