RBA Interest Rate Update: What Does It Mean for Your Home Loan?
The RBA has today unanimously held the cash rate at 4.35%.
For homeowners and our team, the hold provides some welcome stability — but the RBA has made it clear that inflation remains too high and further rate increases are still possible if inflationary pressures persist.
The RBA also noted signs that higher interest rates are having an impact. Consumer spending growth is slowing, housing prices are falling in some capital cities, new housing loans have declined noticeably and labour market conditions have eased. Read the Full Release here.
So, what does all this mean for you?
Already Have a Home Loan? Now Is a Good Time to Review
A rate hold doesn’t necessarily mean your home loan should stay exactly where it is.
With mortgage repayments and everyday household costs continuing to put pressure on family budgets, it can be worth checking whether your current loan and interest rate are still competitive.
A home loan refinance or review could look at whether you can:
- negotiate a better interest rate with your existing lender
- refinance your home loan to another lender
- consolidate higher-interest debts into your home loan
- reduce multiple financial commitments into a more manageable repayment.
Sometimes refinancing can provide meaningful savings. Sometimes staying with your existing lender is the better option.
The important thing is knowing what’s possible. Learn more in our Blog Should You Refinance Your Home Loan
Renovate Rather Than Move?
With the uncertainty surrounding property prices and the significant costs involved in selling and buying again, some homeowners may decide that improving their existing home makes more sense. No stamp duty, no selling costs and no stress about timing the sale of your current home with the purchase of another.
If you have built equity in your property, a home loan increase or refinance for home improvements may be one option worth exploring.
Before starting a renovation, understanding what you can comfortably afford and how the additional borrowing will affect your repayments is important.
First Home Buyer? Don’t Let Property Predictions Make the Decision for You
There is plenty of discussion about property prices falling, and today’s RBA statement confirms that prices are already declining in some capital cities.
For a first home buyer, it can be tempting to wait and try to pick the bottom of the market.
But property markets aren’t all the same.
Affordable homes in popular locations can behave very differently from the broader market, particularly where the number of suitable properties available remains limited.
Rather than trying to predict exactly what property prices will do next, first home buyers should focus on something they can control:
Borrow within your means.
Understand what you can comfortably afford, allow some room in your budget for changing interest rates and household costs, and don’t feel pressured to borrow the maximum simply because it is available.
Rates Are on Hold – But Stay on the Front Foot
Today’s decision doesn’t mean the interest rate story is over.
The RBA says inflation remains too high and has specifically stated that it is prepared to increase rates again if necessary.
At the same time, households are dealing with higher mortgage repayments, fuel, groceries, insurance, utilities and other everyday expenses.
You can’t control the RBA, inflation or property prices.
But you can understand your own position and your options.
Whether you’re considering a home loan refinance, debt consolidation, home improvements or buying your first home, being on the front foot can make a real difference.
Our job is to show you what’s possible. Your job is to decide what’s right for you.
Talk to WhiteStar Finance & Conveyancing to understand your options, improve your finances, and plan your next steps with confidence.
Frequently Asked Questions
Unlike going directly to a bank, we compare multiple lenders and tailor a solution to suit you.
With over 30 years’ experience, we specialise in both straightforward and more complex scenarios — often finding solutions where others can’t.
As mortgage brokers, we’re also bound by Best Interests Duty, meaning we’re legally required to act in your best interests — not the lender’s.
We can review your options (including your credit file) without leaving multiple enquiry marks that may impact your score, so you can explore what’s possible with confidence.
With strong reviews, real client results, and conveyancing support in Victoria, we’re here to guide you from start to finish.
Read our Reviews and Case Studies to know more
Poor credit generally refers to your overall credit history, including missed repayments, defaults or high levels of debt.
Your credit score is a number that reflects this history at a point in time. While your credit score is important, lenders also look at the bigger picture — including your income, expenses and ability to repay.
This means some borrowers may still be eligible for home loan if their credit score is lower. Lenders have different criteria, it about knowing who will help with a bad credit score and also who will help with bad credit like defaults and arrears.
Yes, a home loan is often still possible after missed repayments. Some lenders offering bad credit home loan solutions or poor credit options will look at your current position and ability to meet repayments moving forward. Also the story and events behind these arrears are also important for finding what options are available. Our Home Loan Brokers often look deeper and try to get an everyday home loan solution if we can. Its important to understand your options before the arrears grow. We always recommend in times of financial pressure to pay the mortgage first. Ideally come to an experienced broker to not end up Trapped with finances you cannot manage as soon as possible.
Great Case Study
Yes — using equity to pay off debts is one of the most common reasons people refinance.
By rolling personal loans, credit cards, and other debts into your home loan, you can often simplify multiple repayments into one and improve your overall cashflow.
In many cases, we’ve helped clients significantly reduce their monthly commitments — giving them some much-needed breathing room.
Using this approach to manage cost of living and lifestyle pressures can be helpful, especially as a reset.
However, it’s important to be mindful of relying on this too often, as it can increase interest over time by spreading short-term debts over a longer loan term.
Yes — refinancing can reduce repayments by securing a lower rate, restructuring your loan, or consolidating debts.
We help clients with this every day and have many case studies where repayments have reduced significantly.
Where possible, we aim to maintain your loan term, but sometimes extending it forms part of the solution. The key is ensuring the refinance genuinely improves your position.
Read a Case Study Here
Yes in many cases you can get a home loan with Bad Credit. Options are very much dependent on the situation and financials.
You Might Have More Options Than You Think
Many people come to WhiteStar thinking they need a bad credit home loan and that their options are limited.
In many cases, once we understand the full background, we’re able to help secure a standard home loan — simply by matching the right lender and approach to the situation.
Just because your credit score is low doesn’t always mean you’re out of options.
See some of Our Case Studies
This could be for one or more reasons. It could be income and servicing criteria not being met, credit conduct or credit score, lending policy or even security criteria not being met. Using a broker is a great way to avoid another decline or to learn more about why.
There isn’t always a perfect time to refinance — but it’s smart to keep an eye on your options.
What you see in the media or online doesn’t always reflect what’s actually possible for your situation.
In most cases, it’s better to review your options before financial pressure builds. Acting early can give you more flexibility, improve your chances of approval, and reduce stress if things become tighter down the track.
