Aussie Homeowners Set to Save if Rates Drop in July

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Good news could be on the horizon for Aussie mortgage holders, with the RBA expected to cut interest rates in its latest decision tomorrow — and many homeowners are holding their breath.

Three of the big four banks — Westpac, CBA and NAB — are tipping a rate cut in July, while ANZ is still betting on August. But if the cut comes through tomorrow, it’s likely to be a 25 basis point drop, bringing the cash rate down to 3.60%.

For homeowners who've been feeling the squeeze from back-to-back rate hikes over the past two years, this would be a very welcome relief.

According to Money.com.au, a 0.25% cut could mean:

• $90 in monthly savings for someone with a $600,000 loan,

• $106 saved on a $700,000 mortgage,

• $120 back in the pocket for those with an $800,000 loan, and

• A solid $150 a month saved if you’ve got a $1 million mortgage.

All of that adds up — especially considering this would be the third cut since the RBA started easing the cash rate. For many borrowers, that’s the magic number.

“It’s this third rate cut — the rule of three in action — that people believe will finally bring meaningful relief to their household budgets,” said Money.com.au’s mortgage expert, Debbie Hays.

Hays also pointed out that the timing couldn’t be better — with tax return season in full swing, any extra room in the budget is being gratefully received by families doing it tough.

But the impact doesn’t stop with current mortgage holders.For those still waiting to enter the market, a third rate cut could boost borrowing capacity by up to $50,000, depending on the lender.

“That might open the door to an extra bedroom or a better suburb,” Hays said. “But it’s a double-edged sword — more borrowing power means more competition and likely higher property prices.”

So whether you're already paying off a home or saving for one, tomorrow's RBA decision is one to watch closely. A rate cut could bring much-needed relief — or make the property market even hotter.

More updates to come on AusNewsLanka.