20/05/2025
Interest Rate Cut: What It Means for You
The RBA has just cut the cash rate by 0.25% — a welcome relief for borrowers in today’s high cost-of-living environment.
Here’s what that means in real terms:
• If you have a $1,000,000 mortgage, this cut could save you around $2,500 in interest per year (depending on your lender passing on the full cut).
• For new buyers, the rate drop may increase your borrowing capacity by roughly 5%, potentially allowing you to borrow $40,000–$50,000 more.
Whether you already own a home or are looking to enter the market, this rate cut could make a real difference.
Feel free to reach out if you’d like to explore how this impacts your situation.
