Flemings Property Services welcomes the Reserve Bank of Australia’s (RBA) decision to reduce the cash rate by 25 basis points this February. This marks the first rate cut since November 2020 during the COVID-19 pandemic, when rates hit a historic low of 0.1 per cent.
Impact on the local property market
Since rates began increasing in May 2022—rising 13 times over 15 months—the cash rate has remained at 4.35 per cent for over a year. With this latest cut bringing the rate down to 4.1 per cent, the property market is set to benefit from increased buyer confidence and reduced borrowing costs.
Justin Fleming, managing director at Flemings, stated: “The RBA’s decision provides some relief for the property market. Lower interest rates improve affordability for buyers and renewed optimism for sellers. This is a turning point for the market, and we expect to see increased activity as a result.”
Financial savings for homeowners
Paul Goldsmith, Director at Highlands Funding, highlighted the financial impact for homeowners:
“A rate cut means real savings for mortgage holders—about $80 per month for every $500,000 borrowed,” he said.
“It’s a boost of course for first home buyers, and also transitioning buyers – those selling and buying a new home – as many previously purchased when borrowing was much easier. Higher borrowing capacity, especially if more cuts follow, should give all buyers a material kicker.
“Businesses will benefit too, both from lower interest costs and extra cash circulating in the economy. “For mortgage holders, real relief is likely a cut or two away. With two RBA meetings in the next three months, we’ll get a clearer picture soon, but any rise in inflation could slow things down,” said Mr Goldsmith.
If banks pass the rate cut on in full, here’s what it could mean for homeowners (based on an owner-occupier paying principal and interest on the average variable rate of 6.33% with 25 years remaining on the loan):
| Loan Size | Estimated Monthly Savings |
| $400,000.00 | $61.69 |
| $500,000.00 | $77.11 |
| $600,000.00 | $92.54 |
| $700,000.00 | $107.96 |
Opportunities in local markets
This rate cut presents an opportunity for buyers, investors, and sellers to make confident moves in the market. At Flemings, we’re committed to helping you navigate these changes, whether you’re looking to secure your next investment or achieve a successful sale.
For more information about the RBA’s interest rate cut, visit: https://www.rba.gov.au
For more information about your local property market, contact any of our local agents in Boorowa, Harden, Cootamundra, Young and Cowra.
General Financial Advice Disclaimer
The information provided in this communication is for general informational purposes only and does not constitute financial, legal, or investment advice. While we may discuss market trends, interest rate changes, and their potential impact on real estate, we do not provide personalised financial advice.
Before making any financial decisions, we recommend consulting with a qualified financial advisor, mortgage broker, or relevant professional to assess your individual circumstances. Flemings Property Services does not accept any liability for decisions made based on the information provided.