The RBA cut the cash rate today by 25 basis points. So, what does that mean for owners and investors?
On a 30-year loan of 6 percent with the borrower paying principal and interest, a 25-basis point cut equates to repayment savings of*:
- $600,000 – $96 per month
- $700,000 – $112 per month
- $800,000 – $128 per month
- $900,000 – $144 per month
- $1,000,000 – $160 per month
The cut – which has brought down the cash rate by 50 basis points so far in 2025 – offers slight relief for borrowers. But after a period of some of the highest interest rates on record, any downward movement will be welcomed.
Borrowers will be watching to see if all lenders pass on the 25-basis point cut in full.
What the RBA cut does deliver is increased confidence in the market. It will offer improved borrowing capacity for purchasers and encourage more activity in residential and commercial property markets.
If you’re a seller who’s thinking about capitalising on increased completion, reach out to the team at Bromley Real Estate today to understand how your property is placed in your local market.
Head over to Commercial Real Estate Australia and read Bromley Managing Director Ben Armstrong’s further insights on this RBA cut and the commercial property sector.
*Estimate only. Consult your broker or lender to determine your own individual savings.