RBA CASH RATE ANNOUNCEMENT

RBA Cash Rate Announcement

February 2025

Good news for Homeowners!

The Reserve Bank of Australia (RBA) has kicked off 2025 with some great news for homeowners. The cash rate has been slashed 0.25 percentage points to 4.10%.

This announcement comes after better-than-expected inflation data showed that inflation is heading towards the RBA’s targets.

A blue infographic displaying the latest cash rate change. It shows an arrow pointing downward, indicating a decrease in the cash rate to 4.10%, with a note stating it has dropped by 25 basis points.

What does this mean for you?

For homebuyers, today’s announcement may improve your borrowing capacity. If you’re considering purchasing a property, this could be the right time to explore your options.

For existing mortgage holders, this change might impact your loan repayments. If you’re unsure how this affects your home loan, reach out to us—we can help you review your current rate and refinancing options.

📌 Read the full statement on the RBA’s website.

A line and bar graph showing Australia's Consumer Price Index (CPI) changes from December 2014 to December 2024. The chart tracks both quarterly percentage changes and annual inflation trends, highlighting significant spikes around 2021-2022 before a downward trend.

How much could you save?

All of the Big Four banks had anticipated today’s decision, and now borrowers will be closely watching lenders to see whether they pass on the cash rate cut.

If the full 0.25% decrease is passed on:

Homeowners with a $600,000 loan could save $92 per month.
Those with a $750,000 loan could save $115 per month.
A $1 million mortgage could see savings of $153 per month.

While banks generally follow cash rate movements, it’s not guaranteed. Make sure to check if your lender is passing on the cut, and if not, it may be time to consider switching lenders.

📌 Check out your savings potential here.

Keeping an Eye on the Market

While the rate cut provides some relief, it’s important to stay updated on economic trends, inflation figures, and lender responses. Not all lenders will pass on the rate cut in full, and some may adjust other fees and charges. Keeping track of these changes ensures you’re making the most of potential savings.

If you’re unsure how this announcement impacts your financial situation, we’re here to help. Reach out today to discuss your loan options and take advantage of this shift in the market.

Property Market Snapshot

A table displaying property market data for various Australian states, including auction clearance rates, private sales, and monthly home value changes. States such as Victoria (VIC), New South Wales (NSW), and Queensland (QLD) are listed, with arrows indicating whether property values have increased or decreased.

Lets Start with a Chat

If you have an existing home loan, review your mortgage to see how it stacks up against the competition. Banks may not always pass on rate cuts in full, so it’s important to keep an eye on their next move.

💬 Need help understanding how this impacts your loan? Contact us today