Following last month’s rate cut, find out, in this special announcement from Legal Home Loans, if the Reserve Bank of Australia has decided to raise, hold, or cut interest rates at its third meeting of the new financial year.
In its August meeting, the board of the Reserve Bank of Australia decided to cut the cash rate by 0.25 per cent, bringing it to 3.6 per cent. Today, it has held the cash rate at its current level.
In a statement, the board said: “There are uncertainties about the outlook for domestic economic activity and inflation stemming from both domestic and international developments. On the domestic side, stronger-than-expected data on growth and inflation may indicate that households have become more comfortable consuming as real incomes and wealth rise. If this continues, it may make it easier for businesses to pass on cost increases and lead to more demand for labour. Alternatively, the recent growth in consumption might not persist, particularly if households become more concerned about overseas developments.”
In conversation with Lawyers Weekly, Legal Home Loans director of sales Cullen Haynes said that today’s decision to hold the cash rate will provide continued stability for borrowers.
“The current average interest rate range is now 4.9 per cent to 5.6 per cent. If you didn’t receive a rate reduction from the August cash rate cut, make sure to get in contact with your lender or broker as soon as possible,” he said.
“If you’re considering purchasing a property, now is a good time to get your pre-approval in place. With three cash rate cuts in 2025, your borrowing power has likely improved, potentially expanding your options in the market. Having pre-approval ready ensures you can move quickly when you find the right property.
“Especially with the expansion of the Home Guarantee Scheme from 1 October, which will give first home buyers more opportunities to enter the market sooner.
“We expect the market to heat up this spring and are already seeing signs of it as buyers benefit from increased borrowing capacity and more competitive interest rates.
“Don’t forget, legal professionals can access certain market advantages, such as home loans with just a 10 per cent deposit and waived lender’s mortgage insurance.
“These benefits can make entering the property market more attainable and realistic for the cohort. It’s best to speak to a specialist broker for lawyers to gauge what’s best for you.”
Jerome Doraisamy is the managing editor of Lawyers Weekly and HR Leader. He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.
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