The Reserve Bank of Australia (RBA) has reduced the official cash rate by 25 basis points to 3.85% following its most recent board meeting on 20 May 2025.<\/p>\n
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This is the second rate cut this year. Since 2020 rates had only increased or held steady.<\/p>\n
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If banks and other lenders choose to pass on the rate cut in full, people with a $650,000 mortgage could save around $1000 a year on their repayments.<\/p>\n
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As of 4 March 2025, Canstar<\/a> listed the average basic variable rate mortgage at 6.41% and the average 1 year fixed rate mortgage at 6.15%.<\/p>\n <\/p>\n \u00a0<\/p>\n <\/p>\n Will banks pass on the full rate cut?<\/strong><\/p>\n <\/p>\n Following the February 25 basis point cut, lenders, including the Big Four banks, passed on the full cash rate reduction to borrowers.<\/p>\n <\/p>\n Have a mortgage? Contact your lender or visit their website to see if the RBA decision has affected your repayments.<\/p>\n <\/p>\n \u00a0<\/p>\n <\/p>\n ALP housing policies expected following election win<\/strong><\/p>\n <\/p>\n Central to the incoming Albanese Government\u2019s agenda is an expansion of the “Help to Buy” scheme, a shared equity program designed to assist first-home buyers.<\/p>\n <\/p>\n Eligible homebuyers could purchase a home using only 5% of the price as a deposit, with the government contributing up to 40% equity for new homes and 30% for existing properties.<\/p>\n <\/p>\n Another election policy announced was the investment of $10 billion to construct 100,000 homes exclusively for first-home buyers.<\/p>\n <\/p>\n \u00a0<\/p>\n <\/p>\n What this could mean for homebuyers<\/strong><\/p>\n <\/p>\n Lower interest rates and government policies that support first homebuyers or people on low incomes could make the housing market more accessible.<\/p>\n <\/p>\n However, with more potential buyers looking there could be more competition to secure properties on the market.<\/p>\n <\/p>\n \u00a0<\/p>\n <\/p>\n Learn more about support available for homebuyers in Australia and Victoria<\/strong><\/p>\n <\/p>\n \u00a0<\/p>\n <\/p>\n Australian Government<\/strong><\/p>\n <\/p>\n Housing Australia \u2013 Home Guarantee Scheme<\/a><\/p>\n <\/p>\n Housing Australia \u2013 Regional First Home Buyer Guarantee<\/a><\/p>\n <\/p>\n Housing Australia \u2013 Help to Buy scheme<\/a><\/p>\n <\/p>\n Housing Australia \u2013 Family Home Guarantee (single parents)<\/a><\/p>\n <\/p>\n Housing Australia \u2013 Tools and resources<\/a><\/p>\n <\/p>\n Treasury \u2013 Supporting people into home ownership<\/a><\/p>\n <\/p>\n Australian Taxation Office \u2013 First home super saver scheme<\/a><\/p>\n <\/p>\n \u00a0<\/p>\n <\/p>\n Victorian Government<\/strong><\/p>\n <\/p>\n Housing Victoria \u2013 Home Ownership<\/a><\/p>\n <\/p>\n Housing Victoria \u2013 Help to buy a home<\/a><\/p>\n <\/p>\n State Revenue Office \u2013 Buying a property<\/a><\/p>\n <\/p>\n State Revenue Office \u2013 Homebuyer Fund<\/a><\/p>\n <\/p>\n State Revenue Office \u2013 First Home Owner<\/a><\/p>\n <\/p>\n