How interest rate cuts can boost your borrowing power and save you thousands!

If you’ve been waiting for the right time to restructure your loan or enter the property market, the Reserve Bank of Australia (RBA) may have just handed you the perfect opportunity.

What’s changed?

Over the past six months, the RBA has reduced the cash rate three times by 0.25%—a total drop of 0.75%. These cuts have a direct impact on your borrowing capacity and monthly repayments.

Borrowing power boost

This means you could now afford a property priced $93,750-$187,500 higher than before, assuming an 80% loan-to-value ratio.

Monthly repayment relief

For an $800,000 loan over 30 years:

• A 0.25% cut saves approx. $127/month
   
• A 0.75% total cut saves approx. $381/month

That’s thousands saved annually—money that can go toward renovations, savings, or simply breathing room in your budget.

How to make rate cuts work for you

You can:

• Use the savings to ease cash flow pressures, especially with rising living costs.
   
• Reinvest the savings into your mortgage to reduce interest and shorten your loan term.

Even modest extra repayments can shave years off your loan and save tens of thousands in interest.

Strategy in action

• A single applicant earning $90,000 who previously qualified for a $550,000 loan may now qualify for up to $625,000—opening up access to better-located or larger properties.
   
• A couple with a combined income of $180,000 could now stretch their borrowing capacity from $850,000 to $1 million, allowing them to consider homes that were previously out of reach.
   

Ready to make the most of these rate cuts?

Don’t let this opportunity pass you by. Whether you're buying your first home or restructuring your loan, now is the time to act.

Book your free strategy session today and discover how much more you could afford or save.

Disclaimer:The figures provided are for illustration purposes only and based on standard assumptions. Actual savings and borrowing capacity will vary depending on your loan structure, interest rate, and personal financial circumstances. We recommend seeking personalised advice.