Hold Steady

The Reserve Bank of Australia (RBA) has announced it will keep the cash rate unchanged at 3.85%. For many homeowners doing it tough with higher repayments, this decision may come as a letdown.

After several months of easing inflation, some were hoping July would bring a long-awaited rate cut. But the RBA has decided to wait for “a little more information” before making a move. So, what does this mean for you?

Inflation Is Improving — But Not Enough Yet

According to the RBA, inflation has moderated significantly since its peak in 2022. Key indicators are showing promise: trimmed mean inflation sits at 2.9%, and headline inflation is near the target range.

Still, the Board isn't convinced just yet. Their cautious stance reflects ongoing concerns about domestic spending, wages, and uncertainty in the global economy — especially with factors like trade tariffs and labour shortages still playing out.

What This Means for Mortgage Holders

The decision to hold rates steady means variable-rate borrowers will continue paying elevated repayments for a bit longer. For many, that means tighter budgets and more pressure to cut back.

If you're on a fixed rate that’s due to expire soon, the transition to higher repayments could feel like a shock. And if you're already on a variable rate, the chance to lower your loan costs will need to wait — at least for now.

But here’s the good news: there are still things you can do to stay proactive and potentially save money.

3 Moves to Make Right Now

1. Review Your Current Loan
2. Lenders aren’t always transparent about passing on rate benefits to existing customers. If you haven’t reviewed your home loan in the past 6–12 months, now’s the time.
3. Explore Refinance Opportunities
4. Even with rates steady, refinancing to a sharper deal could put hundreds of dollars a month back in your pocket. There are still competitive offers out there, especially for borrowers with good equity.
5. Get a Finance Health Check
6. Whether you’re planning to buy, invest, or simply want peace of mind, a personalised finance review can help you stay ahead — especially while the market remains uncertain.

Planning Ahead Is More Important Than Ever

The RBA has made it clear: they’re watching the data and are prepared to act decisively if conditions shift. That means today’s rate pause isn’t the end of the story — it’s a signal to stay informed and ready.

Waiting for rates to drop might not be the most effective strategy. Taking control of your lending now could unlock better outcomes, even before the next RBA meeting.

Need help navigating your next move?

Message us today to schedule your personalised loan review. We’ll help you make sense of your current position and plan the smartest path forward — whatever the market does next.