RBA Rates on Hold: What This Means for Your Home Loan
November 2025 Interest Rate Decision
The Reserve Bank of Australia (RBA) kept the cash rate unchanged at 3.60% following its November monetary policy meeting.
The RBA interest rate decision reflects the Board’s view that monetary policy remains restrictive enough to guide inflation (currently 3.2%) back to the target range (2-3%), while allowing the economy to stay on a soft-landing path.
In a recent speech, RBA assistant governor Christopher Kent noted that “financial conditions were restrictive and restraining demand” but that there are now early signs of easing as mortgage payments fall and housing credit increases in response to earlier rate cuts.
What Does the RBA Rate Hold Mean for You?
Even though the Reserve Bank kept interest rates on hold this month, this doesn’t mean you’re stuck with your current home loan rate. Many Australian homeowners can still reduce their mortgage payments right now.
Understanding the Cash Rate vs Your Home Loan Rate
The RBA cash rate is 3.60%, but your actual home loan rate is probably much higher. Most Australians are paying between 5.5% and 7% on their mortgages. This gap between the cash rate and your interest rate is where you might be able to save money.
Why the difference?
- The cash rate is what banks charge each other
- Your home loan rate includes the cash rate plus the lender’s margin
- Different lenders have different margins (their profit)
- Some lenders offer better rates to attract new customers
How to Get a Lower Rate When Rates Are on Hold
Just because the RBA didn’t lower rates doesn’t mean you can’t lower yours! Here are your options:
Option 1: We Negotiate a Lower Rate for You
At Awesome Lending Solutions, we can contact your current lender on your behalf and negotiate a better interest rate. We know:
- What rates lenders are offering to new customers
- How to ask for rate reductions professionally
- Which arguments work best with each lender
- When to mention switching to a competitor
How much could you save? Even a 0.25% rate reduction on a $500,000 loan saves you about $80 per month ($960 per year). A 0.50% reduction saves around $160 per month ($1,920 per year).
Option 2: Use Our Rate Reduction Request Letter
If you prefer to speak to your lender yourself, we provide a free Rate Reduction Request Letter. This letter includes:
- Professional wording that gets results
- Current market rate comparisons
- The right questions to ask your lender
- Tips for the conversation
Contact us to get your free Rate Reduction Request Letter.
Option 3: Refinance to a Better Home Loan
Sometimes negotiating with your current lender isn’t enough. Refinancing to a new lender with a lower rate could save you thousands of dollars per year.
When should you consider refinancing?
- Your current rate is 0.5% or more above market rates
- You’ve been with the same lender for over 2 years
- Your lender won’t negotiate a better rate
- You want better loan features (offset account, redraw facility)
The refinancing process: We compare rates from over 60 lenders to find you the best deal. We handle all the paperwork and make the switch as smooth as possible.
What’s Happening with Interest Rates in Australia?
The Current Rate Environment
The RBA has kept the cash rate steady at 3.60% for several months now. This pause in rate changes comes after:
- A series of rate increases in 2022-2023 to control inflation
- Inflation falling from highs above 7% to the current 3.2%
- Signs that the economy is slowing but not collapsing
When Might Rates Change Next?
While the RBA kept rates on hold in November, financial experts are watching several factors that could influence future rate decisions:
Signs rates might fall:
- Inflation continuing to decline toward the 2-3% target
- Unemployment rising
- Consumer spending slowing too much
- Housing market weakness
Signs rates might stay on hold:
- Inflation remaining above 3%
- Strong employment numbers
- Wage growth staying high
- Housing prices rising again
What Should You Do While Rates Are on Hold?
This rate hold period is actually a great time to take action on your home loan.
1. Review Your Current Home Loan Rate
Check your latest loan statement. What interest rate are you paying? Compare it to current market rates:
- Variable rates: Currently ranging from 5.89% to 6.80%
- Fixed rates (3 years): Currently ranging from 5.69% to 6.40%
If your rate is higher than these ranges, you’re likely paying too much.
2. Check When Your Fixed Rate Expires
If you’re on a fixed rate loan, find out when it expires. Many Australians who fixed their rates at low rates during 2020-2021 are now facing rate increases of 2-3% when their fixed period ends.
What to do before your fixed rate expires:
- Contact us 3-6 months before expiry
- We’ll find you the best rate to switch to
- You might negotiate a better rate with your current lender
- Or refinance to a new lender with better rates
3. Consider Your Loan Features
Even if your interest rate is competitive, your loan might be missing important features:
- Offset account: Reduces interest on your loan
- Redraw facility: Access to extra repayments
- Split loan: Part fixed, part variable
- Extra repayments: Ability to pay off your loan faster
These features can save you thousands over the life of your loan, even if the base rate is similar.
4. Look at Your Repayment Amount
Are your mortgage repayments comfortable, or are they stretching your budget? With rates on hold, now is the time to:
- Build an emergency savings buffer
- Make extra repayments to reduce your loan faster
- Restructure your loan to reduce monthly payments if needed
Common Questions About the RBA Rate Hold
Q: Does the RBA rate hold mean my rate won’t change?
No. Your lender can change your rate at any time, independent of RBA decisions. Some lenders increase rates even when the RBA doesn’t. This is why it’s important to review your rate regularly.
Q: Should I fix my home loan rate now?
It depends on your situation. Fixed rates offer:
- Certainty: Your repayments won’t change
- Protection: If variable rates increase, you’re protected
But fixed rates also mean:
- You can’t take advantage if rates fall
- Often fewer features (no offset account)
- Break fees if you want to exit early
We can help you decide what’s best for your situation.
Q: How often should I review my home loan?
At least once per year. Market conditions change, new loan products become available, and your personal situation may change. An annual review ensures you’re always getting a good deal.
Why Work with Awesome Lending Solutions?
We make it easy to save money on your home loan, whether rates go up, down, or stay on hold.
What we do for you:
- ✅ Compare rates from over 60 lenders
- ✅ Negotiate better rates with your current lender
- ✅ Handle all refinancing paperwork
- ✅ Find loans with the features you need
- ✅ Provide free rate reduction letters
- ✅ Keep you updated on RBA rate decisions
- ✅ Act in your best interests (required by law)
Our service is free for most home loan customers. We’re paid by the lenders, not by you, so there’s no cost to get expert help.
Take Action Today
Don’t wait for the RBA to cut rates. You can potentially lower your home loan rate right now.
Three easy steps:
- Contact us for a free home loan review
- We’ll check if you can get a better rate
- Save money on your mortgage repayments
Sign up to our Newsletter HERE for instant RBA updates and home loan tips.
Contact Awesome Lending Solutions
Ready to see if you can get a better home loan rate?
Get your free Rate Reduction Request Letter or speak with us about your options:
Remember: Even when the RBA keeps rates on hold, you can still take control of your home loan and potentially save thousands of dollars per year.