RBA interest rates: Michele Bullock's 'mistake' as governor, Australia 'on cusp of genuine recession' after 'rotten' update

Mortgage holders could save themselves more than $9,000 of financial pain if they're proactive rather than wait for the Reserve Bank of Australia (RBA) to lower interest rates, which could come in November at the earliest.

New data has revealed mortgage holders could avoid paying a little more than $3,500 in repayments and a whopping $4,500 in interest if they shopped around for a new rate.

"If borrowers opt to wait for the Reserve Bank to cut the cash rate and lenders to follow suit, they could be facing thousands of dollars in additional repayments and interest," Steve Mickenbecker, Canstar's finance expert, said.

"However, seizing the opportunity to switch now could result in considerable savings, especially with the first forecasted rate cut in November. By refinancing now borrowers can lock away savings over the next six months or so if the cash rate cut comes in line with expectations of the big four banks in November, and then double dip when rates eventually fall. It’s hard to flaw this approach.”

Despite there being no cash rate increase in 2024, 33 lenders have increased their variable rates and 10 lenders have increased their fixed rates.