Find out which lenders are offering lower rates
Some smaller lenders have reduced mortgage rates despite the Reserve Bank of Australia’s (RBA) decision to leave the cash rate unchanged at 3.85% in its July meeting, surprising many in the market who had anticipated a further cut.
The RBA had already delivered two 25-basis-point cuts earlier in 2025 – one in February and another in May. Financial markets and major banks such as ANZ, Commonwealth Bank, Westpac, and NAB had largely priced in another 25bps cut this month. The decision to hold steady was likely influenced by persistent inflation concerns and rising living costs, which continue to strain household budgets.
While most lenders remained quiet following the RBA announcement, a few smaller institutions have moved ahead with rate reductions, positioning themselves ahead of a widely expected cut in August.
QBank, a member-owned lender serving essential service workers such as police, firefighters, and public servants, cut its fixed mortgage rates by up to 30bps on Wednesday.
The bank’s updated offerings include a two-year fixed rate for owner-occupiers at 5.19% p.a. (comparison rate 7.12% p.a.) and a three-year fixed rate at 5.09% p.a. (comparison rate 6.89% p.a.), both available for loans with loan-to-value ratios up to 95%.
While interest rates remain unchanged at Greater Bank, the regional lender has revised its cashback promotion for refinance customers. Borrowers switching online can receive $2,500 for loans between $250,000 and $499,999, or $3,000 for loans above $500,000.
The Capricornian, another customer-owned bank, also moved independently of the RBA decision, reducing fixed rates by as much as 35bps.
Following the rate hold, industry groups are turning their focus to the RBA's next meeting. The Real Estate Institute of Australia (REIA) has urged the central bank to consider a cut in August, citing declining first-home buyer participation and ongoing affordability issues.
REIA president Leanne Pilkington said a modest reduction could help ease household pressures without disrupting the RBA’s inflation management.
“If first-home buyer activity continues to weaken, a rate cut at the RBA’s next meeting would provide much-needed relief for households and help restore confidence in the housing market,” Pilkington said.
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