Homeowners have received much-overdue help with the Reserve Bank of Australia’s (RBA) decision to cut the official cash rate by 25 basis points to 4.1%, marking the first rate cut since November 2020. Already the four bank majors CBA[i], Westpac[ii], ANZ[iii] and NAB[iv] have all dropped variable home loan rates off the back of the reserve Bank's decision to cut the cash rate by 0.25%.

Leading Australasian property group Raine & Horne welcomes this move, confident that it will boost Australia’s real estate market and encourage more sellers to list their properties.

The Executive Chairman of Raine & Horne Angus Raine stated that the rate cut was exactly what the property market needed. 

“The pent-up demand we’ve been seeing since the end of 2024, combined with more affordable borrowing conditions provided by lower interest rates, will drive activity in the market this autumn,” Angus said. “We’ve been predicting a vibrant autumn property market, and now, with this rate cut, I’m confident the market bounce back will happen sooner rather than later.”

Angus added, “It’s surprising to hear some commentators claim this rate cut won’t immediately impact real estate activity. 

“In my view, that perspective doesn’t account for the substantial buyer demand that has been building, and with today’s move by the RBA, buyers will now be more motivated to act.”

Angus predicts that this rate cut “will also spur on sellers to list their property”. “Our January data recorded a significant rise in appraisals and listings, indicating that vendors are confident the market will respond positively to the rate cuts.

“A 30% year-on-year (YOY) increase in appraisal values and a 14% rise in listing values reflect a strong outlook as we enter a market cycle set to benefit from rate cuts,” Mr Raine said.

Chris Nicholl, CEO of Raine & Horne, echoed Mr Raine’s sentiments, stating, “We are thrilled with the RBA’s decision to reduce the cash rate. 

“This decision provides an excellent opportunity for Australians looking to enter the property market as first-time buyers as well as investors seeking to grow their wealth. 

“As inflation settles within the target range, this first interest rate cut ensures that the property market remains strong and a viable option for homeowners and buyers in the months ahead.”

Raine & Horne also reported a 19% increase in Open for Inspections (OFIs) attendance during the middle weekend of February 2025 compared to the same weekend in 2024, signalling that eager buyers are ready to capitalise on the improved borrowing capacity brought on by the rate cuts.

“Our OFI data clearly indicates buyers are ready to move,” Mr Nicholl added. “Furthermore, Raine & Horne is perfectly positioned to guide our clients through this exciting phase in the property cycle. 

“With more buyers benefiting from improved borrowing capacity, we anticipate a highly dynamic market as we move through the final two weekends of summer and into autumn.”

Graham Cooke, Head of Consumer Research at Finder, declared that now is the time to act and review your home loan. “After this rate cut, if your interest rate doesn’t start with a 5 – you’re paying too much,” he said. 

According to research from Finder, Aussies with an average home loan of $641,416 will save over $100 per month if their bank/lender passes on the full 25 basis points rate cut. These Australians would see their mortgage drop from $3,887 per month to $3,784 (a saving of $103).

Talk to your local Raine & Horne agent today and start kicking your 2025 property goals sooner. To get a health check for your mortgage, contact Our Broker on 1800 913 677.

 
[i] https://www.commbank.com.au/articles/newsroom/2025/02/interest-rates-february.html
[ii] https://www.westpac.com.au/about-westpac/media/media-releases/2025/18-february/
[iii] https://www.anz.com.au/newsroom/news/2025/february/ANZ-reduces-variable-home-lending-rates/
[iv] https://news.nab.com.au/news/nab-cuts-home-loan-rates-by-0-25/