RBA Rate Cut Lowers Home Loan Repayments Nationwide

The Reserve Bank of Australia has cut the cash rate by 25 basis points to 3.85%, resulting in average monthly mortgage repayment reductions of about $91–$100 for homeowners, depending on loan size. Major banks including NAB, ANZ, Commonwealth Bank, and Westpac have committed to passing the rate cut on to variable home loan customers, though some will delay implementation until late May or early June. The rate cut is anticipated to stimulate homebuyer activity and increase borrowing power, which could drive up property prices, especially in high-demand areas with limited supply. Suburb-level analysis shows higher-priced areas benefit most from monthly repayment reductions. Experts warn that these dynamics may exacerbate housing affordability challenges, particularly for first-time buyers. Additional regional cost-of-living relief measures, such as free public transport for under-18s in Victoria, are also being introduced to support households.