If you’re a first home buyer in Western Australia, this is the news you’ve been waiting for! After a series of rate hikes and holds, the Reserve Bank of Australia (RBA) has officially dropped the cash rate to 4.10% from 4.35%. So, what does this mean for your home buying journey? Let’s break it down.
What does the cash rate drop mean?
The cash rate, set by the RBA, directly impacts rates for various financial products, from loans to savings accounts. With this latest cut, borrowing could become more affordable, potentially lowering mortgage repayments for first home buyers.
Will home loan interest rates drop?
A lower cash rate means lenders may reduce their home loan rates. This could make it cheaper to borrow money, helping you get into your first home with more manageable repayments. However, the exact drop depends on individual lenders.
How this impacts first home buyers
A lower cash rate could mean:
✅ Lower repayments – Pay less interest, making home ownership more affordable.
✅ Higher borrowing power – Secure a bigger loan, giving you more home options.
✅ Increased market activity – More buyers may enter the market, increasing competition.
And here’s the exciting part—economists are predicting future rate cuts, which means your borrowing capacity could increase by $40,000–$60,000 by the end of the year! This could open up even more possibilities for the type of home you can afford.
Should you wait for rates to drop further?
While waiting for further cuts may seem tempting, there’s a risk—property prices could rise due to increased demand, offsetting any savings. Plus, government incentives like the First Home Guarantee and Keystart loans are available right now to help first home buyers get into the market with low deposits.
The cash rate has dropped, making it a great time to secure your first home. At Easystart Homes, we specialise in making home ownership easy with low deposit home loan options and exclusive house and land packages.
All finance services provided by Westgate Financial Services, ACL. 410232.
