RBA Rate Cut: What It Means for Homebuyers, Investors & the Property Market

By Subhash Godara

RBA Cuts Interest Rates: What It Means for the Australian Property Market

The Reserve Bank of Australia (RBA) has officially cut the cash rate for the first time since November 2023, reducing it by 0.25 percentage points to 4.10%. This marks the first change in interest rates in over a year and is expected to have a major impact on homebuyers, property investors, and the real estate market.

Mortgage Repayment Relief for Homeowners

According to Canstar, borrowers will see significant savings on home loan repayments:

A $600,000 mortgage will see repayments drop by $92 per month
A $750,000 loan will decrease by $115 per month
A $1,000,000 mortgage will fall by $154 per month

With lower borrowing costs, many first-home buyers, upgraders, and property investors are expected to re-enter the market, boosting buyer demand and fuelling real estate activity.

Economists & Banks Predicted the Cut

The rate cut was widely expected, with all of Australia’s Big Four banks—ANZ, Commonwealth Bank, NAB, and Westpac—predicting the move. Additionally, Finder’s latest RBA Cash Rate Survey found that 73% of experts correctly forecasted the February rate cut, while 64% believe another reduction will come in May 2025.

What This Means for Housing Affordability & Buyer Confidence

Graham Cooke, Finder’s Head of Consumer Research, emphasized that the rate cut is “welcome news” for many Australians struggling with housing affordability.

“Many prospective homebuyers were sidelined as interest rates soared, delaying their homeownership dreams. With rates now falling, we can expect renewed confidence in the property market,” Cooke stated.

Similarly, Leanne Pilkington, CEO of Laing+Simmons and President of the Real Estate Institute of Australia (REIA), noted that this move will help ease affordability challenges for buyers.

“While the job market remains strong, the cost of living—especially housing costs—has been a major concern. This rate cut offers some relief to mortgage holders,” she said.

Property Prices & Market Trends: What’s Next?

REA Group Senior Economist Eleanor Creagh highlighted that Australia’s inflation rate is now below the RBA’s forecast of 3.4%, paving the way for the interest rate cutting cycle to begin.

“With borrowing power increasing, buyer confidence will improve, and the recent price declines in the market could reverse,” Creagh said.

However, she noted that housing affordability is at its worst level in three decades, which may moderate property price growth compared to past rate-cutting cycles.

Will More Interest Rate Cuts Boost the Housing Market?

Goldfish Real Estate's Head of Research Team expects the RBA to make three more rate cuts by the end of 2025, although global economic factors could influence the pace.

“While banks may take time to pass on the rate cut, we’re expecting an increase in buyer activity, mortgage refinancing, and pre-approvals,” Tiller explained.

Looking at current real estate market trends, Tiller added that sales activity has remained strong, and this announcement could lead to stabilized property prices and an earlier-than-expected market recovery.

“With wage growth outpacing inflation, more households will have additional disposable income, making it easier to save for a home deposit. The lower end of the market should see an uptick in first-home buyers and property investors taking advantage of the rate cut,” he concluded.

Key Takeaways for Homebuyers & Investors

Lower interest rates mean reduced mortgage repayments, easing financial pressure on homeowners.
Increased buyer confidence could drive property price stability and market activity.
Housing affordability challenges persist, but falling rates could encourage first-home buyers to enter the market.
More rate cuts are expected, with experts forecasting further reductions in May 2025 and beyond.

As the Australian property market adjusts to this monetary policy shift, homebuyers, sellers, and investors should closely watch how banks respond and how market conditions evolve.

Disclaimer: Research is based on Goldfish Real Estate's general information and do not constitute any representation. Similarity with any other online resources available is not our responsibility and do held any liability.

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Minimum Standards for Residential Rental Properties

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As per the Residential Tenancies Act, part of the 2021 amendments, rental properties must be kept in good repair and reasonably fit for occupation. Rental providers must ensure that the property is in a suitable condition for occupation regardless of the amount of rent paid, or the property’s age/character.

Rental provider's minimum standards

Rental providers must ensure that the premises meet the required rental minimum standards (see page 179 of the regulations). Should the premises not meet these standards, a renter now has the right to terminate the agreement before they move in, or alternatively can request an urgent repair to the property, after moving in.

Summary of 14 Categories of the minimum standards:

Bathroom: A rental property’s bathroom must contain a washbasin, a shower, or bath and must be connected to a reasonable supply of hot and cold water with certain water star ratings to apply depending on the plumbing at the property.
Electrical Safety: All power outlets and lighting circuits are to be connected to a required switchboard depending on the property requirements (page 182).
Heating: A heater is required in at least the main living area of the rented property. There are certain classifications depending on what Class of building the property is. (page 184).
Kitchen facilities: Rented properties must have a dedicated area for cooking and food preparation. The area must have a sink that is in good working order and is connected to a reasonable supply of hot and cold water, and a cooktop that is in good working order with two or more burners. If there is an oven at the property, it must be in good working order.
Laundry: If laundry facilities are present, they must be connected to a reasonable supply of hot and cold water.
Lighting: Corridors, hallways, and interior rooms must have access to light (whether natural or artificial) that provides a level of illuminance appropriate to the use of the room. Each room needs to have access to natural light (including borrowed light from an adjoining room) during daylight hours, and artificial light during non-daylight hours.
Locks: All external entry doors to the property that are not able to be secured with a functioning deadlock, other than any screen door attached to an external door must be fitted with a locking device that is operated by a key from the outside and may be unlocked from the inside or without a key.
Mould and dampness: Each room in the property must be free from mould and damp caused by or related to the building structure.
Structural soundness: The property must be structurally sound and weatherproof.
Toilets: all rented premises must contain a toilet that is in good working order.
Ventilation: Each room of the bathroom, shower room, toilet, and laundry must meet certain ventilation requirements (page 184).
Vermin-proof bins: A rubbish bin and recycling bin are to be supplied to the renter, provided by the council or otherwise.
Window Coverings: each window in a room that is likely to be used as a bedroom or as a living area must be fitted with a curtain/blind that can be opened and closed, can block light, and can provide privacy.
Windows: all external windows that are capable of opening, must be able to be set in an open or closed position and have a functioning latch protecting against external entry.

To access the complete Residential Tenancies Regulations 2021, click here>>>>.

Are you thinking of changing your Property Manager to manage your investment property or property portfolio? It’s easy & hassle-free to switch. To experience the difference, call us today.

Can you change property manager or agency during mid of lease term or at the end or any time – with the right process I Agency Changeover Process

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Being an owner of investment property or portfolio either commercial or residential property, it is vital to appoint a pro-active & dynamic property manager who can work in your best interest to ensure you are getting an optimized level of return on your investment.

When you feel you aren’t getting the best service and the value you expect from your property manager whether you hold a single investment property or investment portfolio, switching to a new property manager is your best option.

There are many myths around property management – and with extensive experience helping Victorians with their investment properties, it feels like we’ve heard them all. One of the most common things we hear about is people feeling that they are stuck with a property manager that doesn’t suit their needs and the most common reasons are:

Lack of communication;
Missing periodic rent review;
Higher management fees,
Regular increase of fees like management, admin, statements, EOFY or banking etc;
Support to keep property in optimised YOY rental yield,
Missing and reporting periodic inspections;
Higher vacation rates.

Now, the most important question arises in mind, can you change property manager or agency during mid of lease term or at the end or any time – with the right process?

In simple words, yes you can change the property manager at any time if you don’t feel comfortable and not getting the service as expected.

Switching property managers may seem difficult, but as Consumer Affairs Victoria notes, the process is not strenuous.

“In most cases, you can terminate your estate agent’s management of your rental property, effective immediately, by written notice to the agent,” the authority notes.

In most of case, there is no fee unless it is clearly mentioned in the agency’s agreement signed by the Property Manager & you. You can give this notice at any time – even in a fixed-term contract. Best of all, you can have a professional do this for you.

How to change property manager quickly and efficiently? Are there any fees associated with the changeover?

If you’re thinking about switching property managers, the team at Goldfish will handle the entire process free of charge (excepting fees in your existing contract).

From organising agreements and records, regulatory compliance, and safety check, contacting tenants and agents to picking up the keys, notifying new tenants and organising inspections can be done simply, professionally, and efficiently once you appoint team Goldfish.

Most of the time, it pays to take a step back and evaluate the quality of the property management and return of your investment which you’re getting. Try our property appraisal service & proposal to compare whether your property management arrangement is paying the return on your investment as it should be.

If it isn’t, we’re here to offer you a proactive, innovative, technology-driven, compliant, and Guaranteed 100% better property management solution at your doorsteps…. Simply, it is 100% peace of mind and your satisfaction.

To experience the difference, contact the team at Goldfish on 03 5332 4444 or email for a confidential discussion.

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