After a period of rapid rate increases and stability since the last hike in November 2023, we may finally be approaching much-anticipated rate reductions.

There is growing speculation among major lenders and economists that this could happen as early as next week’s RBA board meeting. While nothing is certain, optimism is building around the factors influencing the board’s decision. So, what does this mean for you?

Lower Repayments & Increased Borrowing Power

A drop in interest rates means lower repayments for variable-rate borrowers, putting more money back in your pocket each month. If you are looking to buy a home or invest, lower rates could also boost your borrowing power, making it easier to secure finance.

A Great Time to Refinance

With interest rates potentially decreasing, now is the perfect time to review your loan. If you have explored refinancing in the past without success, now could be your opportunity. Refinancing can help you secure a better rate, reduce monthly repayments, or even access equity for renovations, investments, or other financial goals. If you are on a fixed rate, checking when your term expires and planning ahead is essential.

Opportunities for First Home Buyers

For those looking to enter the market, reduced rates could mean more affordable repayments and increased eligibility for home loans. When combined with government incentives, buying a home may become more achievable than before.

Considerations for Investors

Lower rates can improve cash flow for property investors, making it easier to hold onto assets or expand a portfolio. If you have been thinking about leveraging equity for another purchase, now could be the right time to explore your options.

Potential Property Price Increases

Rate reductions will improve affordability in the marketplace, potentially driving house prices higher as more buyers enter the market. With increased demand comes increased property prices, so it is important to act early and not delay your next purchase following any rate cuts.

The first-home buyer market remains highly active for properties up to $800,000, while the investor space is strong up to $1,000,000. Staying ahead of these trends can give you an advantage in securing your next property.

Is Your Lender Passing on Rate Cuts?

While rate cuts bring opportunities, not all banks may pass on the full benefit. History shows that major lenders will make headline announcements, but other lenders may pass on greater reductions sooner.

We will be closely monitoring lenders to identify those offering the best rates and help you secure finance with a competitive lender that truly benefits you.

What Should You Do Next?

Now is the perfect time to review your loan position and ensure you are getting the best deal. Whether you are purchasing, refinancing, restructuring, or securing a better rate, we can help you take advantage of these changes and keep your lender honest.

Get In Touch

Feel free to reach out to us directly below for an obligation-free discussion about how we can assist you.

* Some of this is opinion/forecast based and is not financial advice.