Although the RBA kept interest rates on hold in the latest meeting, the impact of the last three rate cuts — totalling 0.75% — is already being felt across the housing and lending market.
From monthly repayments to borrowing capacity, these changes are giving homeowners and buyers some welcome breathing room.
💵 What These Rate Cuts Mean for Borrowers
1️⃣ Lower Monthly Repayments
If you have a $600,000 home loan, a 0.75% drop (for example, from 6.00% to 5.25%) can lead to meaningful savings.
Your repayments could fall from around $3,597 to $3,310 per month — a saving of approximately $287 per month, or over $3,400 a year.
That’s extra money you can use to reduce your loan faster, invest elsewhere, or simply take some pressure off your budget.
2️⃣ Higher Borrowing Power
The good news doesn’t stop there.
According to lending advisors, the combined 0.75% rate cuts have boosted borrowing capacity by around 7%.
That means if you were previously approved for $700,000, you may now qualify for approximately $749,000, even with the same income and expenses.
This increase could make the difference between settling for a property and securing the one you really want.
🏡 What’s Happening in the Property Market
The flow-on effects of these cuts are already visible:
- More buyers are re-entering the market.
- Investor activity is starting to lift.
- Confidence in property values has strengthened, particularly in sought-after suburbs.
While the RBA is keeping a close eye on inflation, the recent easing in rates has already provided much-needed support to housing affordability and sentiment.
💬 Want to Know How This Affects You?
Every borrower’s situation is different — and the best way to understand the impact is to run the numbers based on your own lender, loan type, and interest rate.
📲 I’m happy to calculate your updated repayments or borrowing capacity and help you make sure you’re getting the full benefit of the recent cuts.
Let’s have a chat today!