Mortgage holders are widely predicted to get more relief tomorrow, as the RBA makes its latest interest rate decision.

Westpac, Commonwealth Bank and NAB are all predicting an interest rate cut after July’s meeting, while ANZ is holding on to its forecast for a cut in August.

If the central bank moves to slash tomorrow, it will likely bring the cash rate down 25 basis points to 3.60 per cent.

Such a cut will be welcomed by home owners who have been squeezed by the continuing hikes.

Money.com.au has crunched the numbers to reveal how much Aussies could save on their monthly mortgage repayments.

If the 0.25 per cent July cut goes ahead as forecast, a borrower with a $600,000 mortgage could save an additional $90 a month, bringing their total monthly savings to $273 since the RBA began cutting rates.

Owners with a $700,000 mortgage would save $106, while an extra $120 would be left in the bank for families with an $800,000 loan.

A borrower with a $1 million mortgage would save $150 a month from the July cut alone, bringing their total monthly savings to $456.

The savings are based on a starting home loan interest rate of 6.24 per cent, the average in February 2025, and a 25-year loan term.

Money.com.au’s Mortgage Expert, Debbie Hays, says a July rate cut would shift the dial for borrowers.

“Based on conversations we’ve had with borrowers, it’s this third rate cut — the rule of three in action — that they believe will finally bring meaningful relief to their household budgets,” Hays said

“After rate hikes in 2022 and 2023, and a sustained period of higher repayments, many are now watching closely to see if and when their lender passes on the cut in full,” she says.

“It’s an additional welcome boost at a time when people are receiving their tax returns — any extra breathing room in the budget is being gratefully received right now.”

“For those still waiting to enter the property market, a third rate cut could boost their borrowing capacity by up to $50,000 — depending on the lender.

“While that might open the door to an extra bedroom or a more desirable suburb, it’s also a double-edged sword, as it will fuel higher property prices and increased competition from other buyers with the same boost in borrowing power.”