RBA Cash Rate Announcement

May 2025

What It Means For You

In our latest update, we break down the Reserve Bank of Australia’s latest cash rate announcement and what it means for homeowners, first-time buyers, and the broader property market. With interest rates dropping and inflation showing signs of easing, there’s plenty to consider — from refinancing opportunities to new government schemes helping more Australians into their first home. Read on for a full snapshot of where things stand and what you can do next.

RBA Cuts the Cash Rate to 3.85%

It’s the news homeowners love to hear — the Reserve Bank has cut the cash rate by 0.25 percentage points, bringing it down to 3.85%. This decision comes on the back of a continued drop in inflation, with the March quarter numbers offering fresh optimism.

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

Economic and Inflation Insights

• CPI rose 2.4% over the 12 months to March.
• Underlying inflation dropped to 2.9% — the lowest since December 2021.
• While some economists tipped a 50-point cut, the RBA opted for 25 points.
• RBA Governor Michele Bullock noted the strong progress in reducing inflation while maintaining low unemployment.

Time to Review Your Home Loan

Now could be the perfect time to review your home loan. Lenders may start passing on the rate cut — so it’s worth checking if you’re getting the best deal available. We can help assess your options.

First Home Buyers: New Opportunities

The federal government is expanding its support for first-home buyers, including:

• Help to Buy Scheme: Eligible buyers can purchase with a 2% deposit and no LMI, with the government contributing up to 40% in equity.
• First Home Guarantee: From 2026, first-home buyers may purchase with a 5% deposit and avoid LMI.

Property Market Snapshot

Final Thoughts

This rate cut could signal the beginning of more interest rate relief ahead — and possibly more buying power for those ready to enter the market. Whether you’re reviewing your home loan, exploring your eligibility for first-home schemes, or simply curious about what this means for you, we’re here to help.

Contact us today to discuss your situation and next steps.