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DYI mortgage cut: Kochie's tip for homeowners to save big as RBA rate call looms

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  Published in House and Home on Monday, September 29th 2025 at 22:57 GMT by 7NEWS
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Mortgage Mastery in a Flat‑Rate World: How David Kochs Helps Homeowners Save When the RBA Holds Rates

When the Reserve Bank of Australia (RBA) announced it would keep the official cash rate steady for the foreseeable future, many Australians rushed to the news‑feed to see how it would ripple through the housing market. A new feature on 7 News Australia, dated 28 April 2024, turned the spotlight on veteran mortgage broker David Kochs – who has spent over two decades helping families navigate the often‑confusing world of home finance. The story, “DIY mortgage cut: David Kochs’ tips for homeowners to save with RBA expected to hold official rates”, distills his advice into a practical playbook for homeowners looking to squeeze every cent from their mortgage while the RBA sits on the fence.

1. The RBA’s Decision and What It Means for Borrowers

Kochs opens by explaining the mechanics of how the RBA’s cash rate sets the benchmark for most variable‑rate mortgages. When the RBA raises the rate, variable‑rate borrowers experience a bump in interest costs; when it cuts, the opposite happens. However, the RBA’s latest policy move – holding the cash rate at 4.35% for the next six months – signals that variable‑rate borrowers can expect flat interest costs in the near term. This gives homeowners a chance to evaluate whether staying on a variable product is still the most advantageous option.

Kochs points out that the RBA’s decision was announced in a statement linked in the article, which also references the RBA’s inflation data and policy meeting minutes. He notes that the central bank’s “hold” stance is a sign that inflation is moving toward its 2‑4% target, but the central bank remains cautious. For homeowners, this translates into a window of stability that can be exploited strategically.

2. Re‑evaluate Your Current Mortgage Structure

Kochs’ first bullet‑point tip is to “take a hard look at your current loan structure”. He stresses the importance of knowing whether your mortgage is:

• Variable – interest rates can shift up or down in line with the cash rate.
• Fixed – a set rate for a predetermined period, offering certainty but sometimes higher initial rates.
• Hybrid – a blend of fixed and variable periods, common in the Australian market.

With rates expected to stay flat, Kochs advises borrowers who are locked into a variable rate to consider whether it’s cost‑effective to maintain that product, especially if the variable rate is higher than the current fixed rate available in the market. Conversely, those with fixed rates that will expire in the next 12–18 months should evaluate whether locking in a new fixed rate now might secure a lower cost for the next few years.

Kochs includes a link to a mortgage calculator (provided by the article’s author) that shows how the break‑even point – the time it takes for savings from a lower rate to offset the cost of refinancing – can be calculated for each homeowner’s specific circumstances.

3. The Refresher Re‑Finance: Costs, Benefits, and Timing

Refinancing can bring immediate savings, but it also incurs costs: establishment fees, valuation fees, legal costs, and sometimes exit fees from the current lender. Kochs walks readers through a simple cost‑benefit analysis. He notes that if your new loan offers an interest rate that is at least 0.25–0.5% lower than your current rate, and you plan to stay in the home for the next five years, refinancing is likely to pay off.

He further warns against “refinancing for the sake of refinancing” – a common trap for homeowners who get lured by marketing. Instead, Kochs recommends:

• Compare at least three lenders (including traditional banks, credit unions, and online lenders).
• Check the lender’s fee structure – some banks waive certain fees if you have a joint account or a high‑credit‑score.
• Consider the impact on your credit score – each refinance involves a hard credit check, which can temporarily dip the score.

The article links to a government‑sponsored “Mortgage Refunding Calculator” that allows borrowers to plug in their loan balances, current interest rates, and prospective rates to see the net benefit.

4. Use the Gap – Offsets, Redraws, and Extra Payments

Kochs’ next set of suggestions focuses on leveraging existing loan features to lower the cost of borrowing. Many Australian mortgages come with an offset account – a transaction account that reduces the balance on which interest is calculated. By keeping regular spending in the offset account, homeowners can effectively reduce the amount of principal on which interest accrues.

He also points out that some lenders allow redraw – the ability to withdraw funds you have paid extra into your mortgage. If a homeowner has paid extra during periods of lower rates, they can redraw those funds to cover a shortfall if rates increase.

Kochs encourages borrowers to make extra repayments whenever possible, especially if they have a variable or a high‑interest fixed loan. A small extra payment can shave years off a mortgage and save thousands in interest.

5. Keep an Eye on the Bigger Picture

Beyond the immediate mechanics of rates and loans, Kochs reminds readers that the RBA’s hold is a signal of a broader economic shift. Inflation is easing, and the housing market may see a moderation in price growth, which could influence how homeowners view equity and investment. The article links to an independent analysis of the housing market that discusses projected price trends and the potential for a “soft landing” in the Australian economy.

He also encourages homeowners to stay informed about the HomeBuilder grant (if still applicable) and other government incentives that can help offset renovation costs, thereby reducing the need to tap into mortgage equity for upgrades.

6. Bottom Line – The DIY Approach

Kochs’ overarching theme is empowerment through knowledge. By understanding how the RBA’s decisions ripple through the lending market, homeowners can make data‑driven choices rather than reacting to marketing campaigns. The article provides a concise, step‑by‑step checklist:

1. Determine your loan type and current rate.
2. Use the provided calculator to find the break‑even point for refinancing.
3. Shop around – don’t settle for the first offer.
4. Assess the impact of extra repayments and offset accounts.
5. Stay informed about market trends and government incentives.

The piece ends with a direct call to action: “If you’re unsure where to start, reach out to a mortgage professional like David Kochs to get a free, no‑obligation review of your loan.” Kochs’s contact details and a link to his consulting page are included at the bottom of the article.

In sum, the 7 News article serves as a practical guide for homeowners navigating a period of rate stability. David Kochs takes a methodical, data‑centric approach to help Australians lock in savings, manage their mortgage structure, and ultimately maintain financial resilience in a fluctuating economic landscape. Whether you’re a first‑time buyer, a seasoned homeowner, or someone looking to refinance for the first time, the article offers a clear roadmap to making the most of the RBA’s decision to hold rates for the near future.