How to use the rate cut to slice nearly $100,000 off your mortgage

The Reserve Bank of Australia has cut interest rates for the first time since November 2020. Here’s how to make the most of it.

Lucy DeanWealth reporter

Updated Feb 19, 2025 – 8.07am, first published at Feb 18, 2025 – 6.38pm

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Clever borrowers could slice up to two years and nearly $100,000 from a $1 million mortgage by continuing to make repayments at the same level as before the Reserve Bank cut official rates on Tuesday.

Owner-occupiers with a $1 million loan will see their variable rate of 6.33 per cent fall to 6.08 per cent if their banks opt to pass on the RBA cut in full.

Lucy Dean writes about wealth management, personal finance, lifestyle and leisure, based in The Australian Financial Review's Sydney newsroom.