When Will Your Bank Change Your Home Loan Interest Rate? August 2025 Update
The Reserve Bank of Australia (RBA) cut the cash rate to 3.60% on 12 August 2025. Many banks are now rolling out lower rates for their variable home loan customers — but not all at the same speed. In this guide, Mortgage Matrix explains what the change means for your repayments, how to check your lender’s timeline, and what you can do if your rate isn’t reduced quickly.
Article written by
Jasmine Miller
RBA Cuts Cash Rate to 3.60% on 12 August 2025
The RBA reduced the official cash rate by 0.25% in August, marking the third cut in 2025. This move is designed to ease cost-of-living pressures and boost household spending.
For mortgage holders, the key question is when your lender will apply this change. That’s where Mortgage Matrix comes in — we track lender announcements and help clients understand exactly when their repayments will drop.
How Banks Pass on the Rate Cut
At Mortgage Matrix, we’ve seen that:
Some lenders apply the full cut within a few days.
Others take up to two weeks to update repayment schedules.
A few may only pass on part of the cut — meaning you might miss out on potential savings.
How Much Could You Save?
If your lender passes on the August 0.25% cut in full:
A $500,000 loan could save you around $79 per month ($950 per year).
A $1 million loan could save you around $158 per month ($1,900 per year).
Mortgage Matrix can provide a personalised calculation for your exact loan amount — and compare if other lenders could save you even more.
Why Lenders Delay
Banks often cite administrative processing times for delays — but in reality, it can also be about maintaining profit margins.
Our brokers regularly see competitive lenders pass on cuts faster, especially smaller banks and credit unions.
Your Action Plan
To make the most of the August 2025 rate cut:
Check your lender’s announcement — Mortgage Matrix clients receive this via email.
Book a time with Mortgage Matrix — We'll conduct an audit on your current home loan to ensure you're still on the best home loan product.
Keep repayments the same — Even after a cut, maintaining your old repayment amount can pay down your loan faster.
FAQs
Q: How do I know when my rate will change?
A: Mortgage Matrix tracks all lender announcements and can confirm the exact date your new rate will take effect.
Q: Will my fixed-rate home loan change?
A: No — fixed rates remain the same until your fixed term ends. However, we can help you plan ahead for when your fixed term expires.
Q: Can I change lenders before the cut takes effect?
A: Yes. If your current lender is slow to pass on the savings, refinancing could mean you benefit sooner — and potentially get a lower overall rate.
9. Lender Rate Change Dates
Below is the latest update from our Mortgage Matrix Lender Rate Change Tracker:
Lender | Rate Cut Amount | Effective Date |
|---|---|---|
ANZ | 0.25% | 22 August 2025 |
CBA | 0.25% | 22 August 2025 |
NAB | 0.25% | 25 August 2025 |
Westpac | 0.25% | 26 August 2025 |
Macquarie Bank | 0.25% | 15 August 2025 |
ING | 0.25% | 23 August 2025 |
Bendigo Bank | 0.25% | 27 August 2025 |
Suncorp | 0.25% | 27 August 2025 |
*This list will be updated as more lenders announce their changes. If your bank is not listed above book in with us direct for a personalised home loan review.
Closing Summary
The RBA’s August 2025 rate cut means potential savings for many Australian mortgage holders — but when those savings arrive depends on your lender.
Mortgage Matrix makes the process simple:
We monitor rate changes for you.
We negotiate with lenders to secure faster, bigger savings.
We provide refinancing options if your bank isn’t competitive.
💬 Ready to find out when your rate will drop?
Book your free appointment today and let us do the legwork.
Tools & Resources: Borrowing Power, Repayments & Home Loan Tips
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Article written by
Jasmine Miller
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