The majority of new home loans in Australia in 2024 are variable – estimated at 98 per cent – while only 2 per cent are fixed, so there are bound to be a lot of happy homeowners celebrating the RBA’s announcement. If you’re on a variable rate get in touch and we’ll check whether your lender has passed on the interest rate cut, and/or whether it might be worth refinancing to a more competitive home loan.
If you’re looking to buy a property, there’s good news for you too – the RBA’s announcement may improve your borrowing capacity. Talk to us and we’ll help you explore your finance options.
Property prices remained relatively flat across the nation’s capitals in January, but the RBA’s announcement may change that. Meanwhile, regional areas are seeing values reach record highs.
The RBA kicked off its first meeting for 2025 with a 0.25 percentage point reduction in the cash rate to 4.10 per cent.
The announcement comes after better-than-expected inflation data showed that inflation is heading towards the RBA’s targets.
All of the Big Four banks had anticipated the RBA’s decision, and now borrowers will be closely watching lenders to see whether they pass on the cash rate cut.
If passed on in full, it’s estimated borrowers with a $600,000 home loan will save $92 a month, while those with a $750,000 loan will pocket $115 a month.
For a borrower with a $1 million home loan, the cash rate cut is expected to save them around $153 per month.
To talk through your home loan and the benefits of refinancing, get in touch today. We can also explain your borrowing capacity in the current market, so please reach out.
Property values across the nation’s capitals held relatively steady in January.
Three of the eight capital cities recorded a decline in values in January. Melbourne saw the sharpest dip, with property prices dropping -0.6%, followed by the ACT (-0.5%) and Sydney (-0.3%).
Brisbane and Perth continued to perform stronger than other markets, but these cities are also losing steam in terms of price growth.
“Perth is now recording a slower rate of growth than Brisbane and Adelaide over the rolling quarter,” CoreLogic research director Tim Lawless said.
“In the June quarter of 2024, growth in Perth home values was 7.1%, easing back to just 1.0% growth in the three months to January.”
The rate of growth is also slowing in Adelaide, but the city has led the capitals over the past six months with a 4.8% increase.
Meanwhile, dwelling values across the combined regional areas of Australia rose a further 0.4% in January, reaching new record highs.
“Regional markets seem to be benefitting from a second wind of internal migration, along with an affordability advantage in some markets, and what looks to be some permanency in hybrid working arrangements across some occupations and industries,” Mr Lawless said.
All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
---|---|---|---|---|
VIC | 761 | 66% | 1124 | ▼ – 0.6% |
NSW | 924 | 62% | 1633 | ▼ – 0.3% |
ACT | 63 | 62% | 92 | ▼ – 0.5% |
QLD | 213 | 41% | 953 | ▲ 0.3% |
WA | 7 | 29% | 499 | ▲ 0.4% |
NT | 1 | 100% | 21 | ▲ 0.6% |
TAS | 2 | — % | 157 | 0% |
SA | 98 | 63% | 256 | ▲ 0.7% |
With interest rates coming down, now is the time to start putting any purchasing plans for 2025 into action. Whether you’re buying your first home, next home or an investment property, we’ll organise preapproval on your finance so that you’re ready to go.
If you’re considering refinancing after the cash rate cut, talk to us and we’ll run through your finance options.