Interest Rate Cut Brings Good News for Homeowners and Buyers
There’s some welcome news for households around the country. The Reserve Bank of Australia (RBA) has cut the cash rate by 0.25%, bringing it down to 3.85%. This comes as inflation continues to fall.
The latest figures show the cost of living (measured by the Consumer Price Index) went up by 2.4% over the past year. Core inflation, which gives a clearer picture by leaving out some price changes, dropped to 2.9% – its lowest level since late 2021.
While some experts thought the RBA might cut rates by more, the bank chose a smaller step for now.
RBA Governor Michele Bullock said, “We’ve made good progress bringing inflation down and keeping jobs steady. We’ll keep watching how the economy goes.”
What This Means for Homeowners
If you have a home loan, now is a good time to check in. Has your lender passed on the rate cut? You might be able to lower your repayments or get a better deal.
Good News for First-Time Buyers
Falling interest rates can also make it easier to buy a home. Lower rates mean lower monthly repayments, which can help with budgeting and borrowing power.
The government has also announced new help for buyers:
- Help to Buy Scheme: Eligible buyers can buy a home with just a 2% deposit. The government will chip in up to 40% of the cost, and there’s no need to pay Lenders Mortgage Insurance (LMI).
- First Home Guarantee: From 2026, first-time buyers will be able to buy with a 5% deposit and no LMI.
Whether you’re paying off a loan or planning to buy your first home, now’s a great time to explore your options.
Contact Team OC if you would like to have chat about what these interest rate cuts means for you.