Recent Interest Rate Adjustments in Car Finance and Personal Loans: Opportunities for Borrowers in Perth's Northern Suburbs

As we head into the latter part of 2025, the Australian financial landscape has seen significant shifts, particularly in interest rates. The Reserve Bank of Australia (RBA) has been actively adjusting the cash rate in response to cooling inflation and economic pressures. Multiple cuts throughout the year have created more favourable conditions for those seeking car finance or personal loans. At MB Perth, your local family-owned broker in Kinross, we're here to help individuals and small businesses navigate these opportunities across our panel of over 30 lenders.

Understanding the RBA's Recent Moves

The RBA started 2025 with the cash rate at 4.35%. By August, it had implemented three cuts, bringing it down to 3.60%—the lowest in two years. The most recent adjustment came in August, with a 0.25% reduction. This followed pauses and earlier cuts in February and May. This downward trend aims to ease financial pressures on households and stimulate borrowing.

With the next RBA meeting scheduled for 29–30 September, experts from major banks like CommBank and ANZ are forecasting potential further cuts by November. They predict the rate could drop to 3.35% or lower by year's end. These adjustments directly influence lending rates. Banks and non-banks typically pass on reductions to variable rate products, though the extent and speed can vary.

Impact on Car Finance Rates

Car loans have benefited from these rate cuts. Both secured and unsecured options are seeing downward pressure on interest rates. As of September 2025:

• Bank Lenders: Major banks like CommBank are offering competitive rates starting from 5.99% p.a. for eligible electric vehicles (EVs) and plug-in hybrids. Standard new car loans range from 6.29% to 10.29% p.a. Bank Australia and others have announced decreases of 0.25% on variable loans in line with the August RBA cut. Green car loans are particularly attractive, with rates as low as 5.09% p.a. from lenders like RACV.

  
  

• Non-Bank Lenders: Non-banks, which often cater to a wider range of credit profiles, have also adjusted rates downward. For instance, unsecured car loans can start as low as 4.50% p.a. with providers like Rapid Finance. These lenders are known for flexibility, sometimes offering quicker approvals but potentially higher rates for riskier borrowers. Overall, non-bank car finance rates have trended lower in response to the RBA's actions, making it a good time for upgrades or new purchases.

  
  

These reductions mean lower monthly repayments for borrowers. For example, on a $30,000 car loan over five years, a 1% rate drop could save hundreds in interest.

Adjustments in Personal Loan Rates

Personal loans, often used for debt consolidation, home improvements, or unexpected expenses, are also feeling the effects of the RBA's cuts. These loans can be fixed or variable, with rates adjusting more variably across lenders.

• Bank Lenders: CommBank's fixed-rate personal loans now range from 7.00% to 22.00% p.a., with a representative rate of 16.00% p.a. Banks like Macquarie have quickly passed on savings, reducing rates within days of RBA announcements. Variable personal loans from institutions like Bank Australia have seen direct 0.25% cuts.

  
  

• Non-Bank Lenders: Non-banks continue to offer competitive options, with green personal loans from Community First Bank starting at 6.54% p.a. These lenders often provide tailored solutions for those who might not qualify for bank rates, though averages can be higher. The overall market has seen rates ease, with comparisons showing starting points from 5.09% for select products.

  
  

With inflation stabilising and labour markets remaining tight, these lower rates are encouraging more borrowing for personal needs.

Bank vs. Non-Bank Lenders: Key Differences in a Falling Rate Environment

Banks typically offer lower base rates but stricter eligibility. They pass on RBA cuts more predictably to variable products. Non-banks, on the other hand, provide more accessible options for diverse credit histories. They may adjust rates faster or offer unique incentives, though they might not always match the lowest bank rates.

In Perth's Northern Suburbs, where economic conditions can vary, accessing a broad panel of lenders is crucial to finding the best fit.

What This Means for You and How MB Perth Can Help

These interest rate adjustments signal a borrower-friendly market. They could potentially save you money on car finance or personal loans. Whether you're upgrading your vehicle or needing quick funds, now could be an ideal time to act—especially with another possible RBA cut on the horizon.

As a family-run broker operating from 8am to 9pm, online or face-to-face, MB Perth compares options from over 30 lenders. We aim to secure the most competitive rates tailored to your needs. Contact us today at MBPerth.com.au to discuss how these changes can work in your favour and get a free quote. Let's drive your financial goals forward!

Additional Insights on Interest Rates and Borrowing

The Importance of Staying Informed

Staying informed about interest rates is essential for making smart financial decisions. The RBA's moves can impact your borrowing costs significantly. Understanding these changes can empower you to take advantage of lower rates.

Strategies for Securing the Best Rates

When seeking car finance or personal loans, consider the following strategies:

1. Compare Lenders: Don't settle for the first offer. Compare rates from various lenders to find the best deal.

   
   

2. Check Your Credit Score: A good credit score can help you secure lower rates. Ensure your credit report is accurate and up-to-date.

   
   

3. Consider Loan Terms: Different lenders offer varying terms. Choose a loan term that fits your financial situation.

   
   

The Role of a Finance Broker

Working with a finance broker like MB Perth can simplify the process. We have access to a wide range of lenders and can help you navigate the complexities of borrowing. Our expertise can save you time and money.

Conclusion: Take Action Now

In conclusion, the recent interest rate adjustments present a unique opportunity for borrowers. Whether you're looking for car finance or personal loans, now is the time to explore your options. With the right guidance, you can secure a loan that meets your needs and fits your budget. Reach out to us today, and let's make your financial goals a reality!