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‘Stretch Themselves to the Max’: The Risky Property Trend that’s Back

  • On May 21, 2025, the Reserve Bank of Australia reduced the benchmark interest rate by 0.25%, lowering it to 3.85%, marking the second rate reduction this year.
  • This rate cut follows a previous 25-point reduction in February and responds to inflation now within the 2-3% target amid a tight labour market.
  • The cut aims to lower mortgage repayments, with owner-occupier variable rates expected to fall to 5.81%, reducing monthly costs by about $81 on a $750,000 loan.
  • Anthony Landahl said clients shifted their borrowing mindset from fearing rises to maximizing loans as rates fall, while economist Adelaide Timbrell expects only marginal increases in higher borrowing.
  • Lower rates and improved consumer sentiment should support more housing activity but ongoing affordability challenges and cautious lending may limit price gains.
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cootamundraherald.com.aucootamundraherald.com.au
+5 Reposted by 5 other sources
Lean Left

RBA cuts cash rate: what it means for property prices

The cut is the second this year and gives hope to home buyers.

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Bias Distribution

  • 100% of the sources lean Left
100% Left
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The Canberra Times broke the news in Canberra, Australia on Tuesday, May 20, 2025.
Sources are mostly out of (0)