What the Latest Rate Cut Means for You... Especially If You’re Thinking About Buying

The Reserve Bank has officially cut the cash rate by 0.25%, taking it to 3.85%. This move, while anticipated by many economists, signals a clear shift in the market, and one that could make a big difference for both current homeowners and those hoping to step onto the property ladder.

For Current Homeowners

If you’re on a variable rate loan, your repayments could decrease in the weeks ahead. This might mean more room in your budget or the chance to pay down your home loan faster. But beyond that, rate drops tend to stir competition between lenders, which means now is a smart time to review your setup, even if you’re happy with your current rate.

If you're on a fixed term, now’s a great moment to plan ahead. When your rate ends, you may be able to refix or refinance at a more favourable level and possibly access features that better suit your lifestyle or future plans.

For Prospective Buyers

This is where things get interesting.

Lower rates often increase borrowing power, which could boost your chances of getting into the market sooner or securing a property you didn’t think was within reach. Even if you’ve had a borrowing estimate before, it’s worth updating it, because your capacity may have changed.

Keep in mind: rate cuts can also reignite buyer competition. So if you've been sitting on the fence, getting clear on your numbers now could help you move quickly when the right property appears.

The Bigger Picture

Two rate cuts in a row suggest the RBA is actively working to stimulate economic confidence and in turn, the property market. Whether you're already in the game or still planning your move, it's a good time to tune in, run the numbers, and make sure you're in the best position to benefit.

And stay tuned! We’ve got some exciting collaborations and community projects in the works we can't wait to share.

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