RBA cuts interest rates – What it means for house prices

The Reserve Bank has just cut the cash rate to 3.60% – the third cut this year. So what does this mean for the property market? Let’s break it down:

1. Borrowing power goes up
Lower interest rates mean banks assess buyers with slightly lower repayment costs. Translation: buyers can now borrow more money than they could last month. For some, this could mean an extra $10K–$20K in borrowing capacity.

2. Mortgage repayments drop
The RBA cut the cash rate 0.25% → if banks pass it on in full, here’s the math:

• $380,000 loan, 30 years

• Interest rate drops by 0.25%

• Monthly saving = about $60–65 per month

• Annual saving = around $720–780

For someone with a $380K mortgage, this latest RBA cut could shave around $65 a month off repayments – that’s nearly $800 a year back in your pocket (if your lender passes it on).”

3. Demand pushes prices higher
Cheaper money = more buyers in the market. Combine that with low housing supply in Brisbane and across Australia, and you get upward pressure on house prices. That’s why CoreLogic has already reported house prices rising nearly 5% year-on-year.

4. Investors back in the game
With cheaper finance, investors start sniffing around again—especially with rental demand still sky-high. This competition with first-home buyers adds fuel to the market.

5. The catch
Yes, you can borrow more. But sellers know this too. When buyers have more money, sellers lift their expectations- so the extra borrowing power can get eaten up quickly by higher asking prices.

The RBA cut makes borrowing cheaper, which increases demand. In a market like Brisbane where supply is tight and population growth is strong- this almost always pushes prices higher. If you’re thinking of buying, waiting may actually cost you more down the track.