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If your lender hasn’t passed on the latest RBA rate cut, don’t worry. Here are three practical ways Australian homeowners can reduce their mortgage costs in 2025—even without a rate reduction.

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mortgage savings tips, refinance cashback 2025, RBA rate cut impact, how to reduce mortgage repayments, fixed vs variable rate, loyalty tax, home loan comparison Australia, mortgage broker advice

Didn’t Get a Rate Cut? 3 Smart Ways to Still Save on Your Mortgage

After the Reserve Bank of Australia (RBA) lowered the official cash rate to 3.85%, many borrowers expected immediate relief on their monthly mortgage payments. But if your loan repayments haven’t changed, you’re not alone.

Some lenders have delayed passing on the full cut—or have chosen not to pass it on at all—leaving many homeowners wondering what steps they can take. The good news? Even without a rate cut, there are still effective ways to reduce your mortgage costs.

1. Ask Your Current Lender for a Better Deal

Lenders often offer better rates to new customers than existing ones—a practice commonly referred to as the “loyalty tax.” If you’ve had your loan for several years, there’s a strong chance you’re paying more than necessary.

Call your lender and request a rate review. Point out advertised rates for new customers and ask them to match or beat it. Many lenders are willing to negotiate, especially if you mention that you’re considering refinancing.

Tip: Prepare by collecting a few comparison quotes from other banks or brokers. This strengthens your negotiating position and shows you’re serious.

2. Refinance and Take Advantage of Cashback Offers

If your lender won’t budge, refinancing could be the best move. Many banks are offering cashback deals of up to $4,000 for new customers in 2025—on top of potentially lower interest rates.

That extra cash can help pay down your loan, cover refinancing fees, or be used for home improvements. Even a small drop in your interest rate can result in thousands of dollars saved over the life of your loan.

Make sure to factor in all costs associated with refinancing—such as break fees or application costs—and compare options thoroughly to ensure it’s worth the switch.

3. Review and Adjust Your Loan Structure

Your current loan setup might not be the most cost-effective. While fixed rates offered security last year, expectations of further rate cuts in 2025 are making variable rates more attractive.

Alternatively, splitting your loan into part fixed and part variable can give you the best of both worlds—rate stability with flexibility. Talk to a mortgage broker or financial advisor to see what structure suits your financial goals and risk tolerance.

Final Thoughts

Just because your rate didn’t drop doesn’t mean your savings opportunity is gone. Whether you negotiate a better rate, refinance to a new lender, or adjust your loan structure, there are still ways to take control of your mortgage. Staying proactive and informed can help you save more, pay off your loan faster, and feel more secure in today’s evolving interest rate environment.