RBA Lowers Cash Rate to 3.60%: What It Means for You

The Reserve Bank of Australia (RBA) met today and announced a 0.25% cut to the official cash rate, bringing it down to 3.60%. This decision follows encouraging data showing inflation continues to ease toward the RBA’s target range. The third rate cut of the year, this see's a decrease from the high on 4.35% in November 2023.

Here’s how this change could impact your finances:

Lower Mortgage Repayments
Australia’s major banks have confirmed they’ll pass on the rate cut to customers. If you have a variable home loan, expect lower monthly repayments soon. For example: A $500,000 loan could save an additional ~$75/month. Over your loan’s lifetime, this adds up to significant savings.

Boosted Borrowing Power
Lower rates mean banks may lend more generously. Your borrowing capacity could increase, potentially widening your property search. Whether you’re eyeing a larger home, a better location, or entering the market for the first time, opportunities are expanding.

More Competition in the Market
Rate cuts often attract buyers back into the market. With demand likely rising, you should act fast if you’re serious about buying as popular properties may see increased interest. Ensure you have pre-approval ready to compete confidently.

Today’s cut offers relief to borrowers and may reinvigorate the property market. If you’re considering a move, now’s the time to strategise with your broker.

Disclaimer: This blog provides general information only. Consult a financial advisor for personalised advice.