RBA Rate Cut: A Positive Shift for Home Buyers
RBA Rate Cut: A Positive Shift for Home Buyers
It’s been a long time coming, but for the first time in four years, the Reserve Bank of Australia (RBA) has officially cut interest rates. Announced this afternoon, the 0.25% reduction brings the cash rate down to 4.1% a step forward that could positively impact home buyers across the country.
For those looking to build a new home, this change signals a shift in market sentiment as it has been one of the biggest barriers for buyers in recent years. With improved borrowing capacity and renewed confidence in the market, now is the time to take a fresh look at your home ownership opportunity.
Sales Director Paul Millson welcomed the news, saying: “Even a small reduction in rates can make a meaningful difference in affordability. We anticipate this will reignite interest from buyers who may have been hesitant and provide much-needed momentum for the housing market.”
Grant Arbuckle, Mortgage Broker at GA Finance, shared his financial perspective with us, stating "Homeowners have finally received some much-needed relief with this 0.25% rate cut, reducing interest by around $100 per month on a $700,000 loan. However, those with direct debit repayments should check that lenders have updated their payments accordingly. For buyers, this cut could increase borrowing capacity by around $20,000—helping more people secure their ideal home."
Now, the focus shifts to how banks respond. Will we see reductions passed on to borrowers? Will this be the start of a trend towards more accessible home loans? Time will tell. If you’ve been waiting for the right time to start your home building journey, this could be the moment you’ve been waiting for.
If you're considering building a new home, speak with our team at Orbit Homes to explore your options. With interest rates moving in a favourable direction, now could be the perfect time to secure your dream home.