As a mortgage broker, one of the most common questions I’m hearing right now is: “What’s happening with interest rates, and how will it affect me?”

The short answer?
We’re in a period of stability — but also uncertainty. The Reserve Bank of Australia (RBA) has kept the cash rate on hold, and while earlier optimism pointed to future cuts, that outlook has now softened. Lenders are responding accordingly, and borrowers should make sure they’re well-positioned.

Here’s what you need to know.

Interest Rates: Stable, But Not Falling Further… For Now

The RBA has held the cash rate steady, keeping borrowing conditions relatively stable. But lenders have started adjusting their fixed rates upward, signalling that expectations of further cuts may be fading.

In other words:
Rates aren’t rising sharply, but the window for cheaper fixed loans may be narrowing.

Why the RBA Is Playing It Safe

Inflation pressures remain the key driver. Rising housing costs, strong demand in some sectors, and slower declines in inflation mean the RBA is cautious about loosening monetary policy too quickly.

This caution flows into the mortgage market:

• Variable rates have come down earlier in the year, but further reductions are not guaranteed
• Fixed rates are beginning to edge upward with lender repricing
• Banks continue to compete, but they are more measured in their appetite

What This Means for Borrowers

If you have a variable loan:

Your rate may still be competitive, but don’t assume it will drop much further. Now is a great time to review your structure and make sure your budget is resilient.

If you’re thinking of fixing:

With many lenders raising fixed rates, the timing matters. Locking in could provide certainty, but weigh the pros and cons based on your financial goals.

If you’re considering refinancing:

There are still opportunities to improve your loan position, but a careful comparison matters more than ever — not just headline rates, but fees, features, and long-term flexibility.

Smart Mortgage Strategy in Today’s Climate

Here are three moves I’m recommending to clients:

1. Get a mortgage health check
   Even if you’re comfortable, it pays to know if there’s a better structure or rate available.
2. Stress-test your repayments
   Build a buffer. Even small changes in interest rates can affect your cash flow.
3. Consider a split-loan strategy
   Combining fixed and variable components can balance certainty with flexibility.

Where Could Rates Go Next?

The outlook is mixed.
Some economists now expect no further rate cuts this year, and possibly none until 2026. Much depends on inflation trends and economic stability.

This makes proactive planning more important than ever.

Ready to Strengthen Your Loan Position?

If you’re unsure whether your current loan is still competitive — or if you want clarity around fixing, refinancing, or structuring your mortgage — now is the time to act before more lenders adjust their rates.

📞 Book a free mortgage health check with me today.

No obligation, just honest guidance tailored to your goals.