The RBA Cuts Cash Rate to 3.60%—What It Means for Your Loans

The Reserve Bank of Australia has just cut the cash rate by 0.25 percentage points, bringing it down to 3.60%, The third cut in 2025, as inflation has cooled to 2.1% and the labor market shows signs of softening.

Why This Matters for Asset & Personal Borrowers

• Cheaper Car & Asset Loans
  Lenders typically pass rate cuts along, and even a 0.25% reduction can yield meaningful savings. On a $40,000 car loan over five years, borrowers could save around $500 in interest—and that’s before accounting for improved borrowing capacity or promotional offers from dealerships.

• Refinancing Opportunities
  If you’re sitting on good equity in a vehicle or another financed asset, now’s the moment to refinance. Lower borrowing rates not only reduce repayments but can also free up cash flow for business or personal use.

• Debt Consolidation via Personal Loans
  For those juggling higher-cost credit (like credit cards or expensive hire-purchase agreements), locking in a lower-rate personal loan could slash interest expenses and simplify monthly payments.

• Small Business & Cash Flow Boost
  Business owners can benefit from reduced finance costs: refinancing existing loans or securing working capital at cheaper rates helps bolster liquidity—especially critical when consumer demand remains subdued despite rising nominal consumption.

How does this affect homeowners?

• Home Loan Interest Rate Savings: Homeowners with a $500,000 mortgage can expect around $74 less per month, or $888 annually, if lenders fully pass on the cut. Meanwhile, other estimates show potential yearly savings of up to $2,884 on a $500,000 loan.

• Why That Matters: Whether you're cutting expenses or padding your savings, this is meaningful relief.

• Redirect That Cash: Many households are now freeing up that mortgage savings to afford purchases they’ve delayed—like a new car.

How Ausloans can help you take advantage of this cut...

• Refinance Asset Loans: We’ll help you shift your car, marine, or equipment loan to more competitive rates—lowering repayments or terms.

• Debt Consolidation: If you're juggling high-interest credit or hire purchase debts, we can streamline those into a lower-rate personal loan.

• Boost Business Liquidity: Access cheaper finance for your business to smooth operations or move ahead on opportunities.

• Homeowner Advantage: If you’re saving on your mortgage, talk to us about leveraging that freed-up equity—for a car, assets, or smarter financial planning.

The Bottom Line

The RBA’s rate cut today is more than just good news for mortgage holders—it opens genuine savings for asset lending customers too. If you're financing anything but a home, now's your chance to negotiate smarter deals, free up capital, and reclaim control over your finances.

Ready to capitalize on this rate cut? Let’s make it happen.