As we head into Summer, the Reserve Bank has delivered some hot news – cutting the Official Cash Rate (OCR) by 0.50% to 2.5%, with another cut of 0.25% anticipated in November.
This is one of the largest cuts we’ve seen in some time, making now the perfect time to review your lending and set yourself up for the months ahead.
Rates Are Moving – Fast
In the lead up to the announcement, many lenders had already pre-empted the cut by reducing fixed rates. Since the cut, we’ve started to see floating rates drop, and we expect to see more movement in fixed rates over the coming weeks as the dust settles.
👉If you’re currently on a floating rate or have a refix coming up soon, now is the moment to get strategic – the next few weeks could deliver opportunities you don’t want to miss, and we all know how busy banks get in the lead up to Christmas.
Borrowing Power Is Lifting
We’ve already seen one bank lower its test rate – the internal rate banks use to assess how much you can borrow.
Lower test rates can significantly increase your borrowing power, making it easier to buy, renovate, or restructure. This is a game changer for anyone planning their next move, or who may have been held back previously!
Your Opportunity:
✅ Lock in better rates or restructure smartly to suit your plans for the year ahead.
✅ Explore refinance options to maximise cashback incentives, increase cashflow or start paying your lending off faster.
✅ Position yourself strategically for 2026 with a pre-approval or better loan structures that will help you meet for your goals.
Take Action Before Summer
These shifts don’t happen often – and the next few weeks could be pivotal for homeowners and buyers.
My phone hasn’t stopped ringing since the announcement – If you’re looking to review your lending, make a move, or get ahead financially this summer, give me a call or reply to this email and we’ll talk through the best approach for your situation and goals.
