Proximity Capital

𝐆𝐨𝐨𝐝 𝐍𝐞𝐰𝐬 𝐟𝐨𝐫 𝐁𝐨𝐫𝐫𝐨𝐰𝐞𝐫𝐬: 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐃𝐫𝐨𝐩𝐬, 𝐑𝐚𝐢𝐬𝐢𝐧𝐠 𝐇𝐨𝐩𝐞𝐬 𝐟𝐨𝐫 𝐑𝐚𝐭𝐞 𝐂𝐮𝐭𝐬

Australia’s inflation is cooling, increasing the likelihood of interest rate cuts by the Reserve Bank of Australia (RBA).

The latest Consumer Price Index (CPI) report shows annual inflation dropping to 2.4%, while the key “trimmed mean” inflation measure fell to 3.2%—closer to the RBA’s target range.

With price pressures easing and economic momentum slowing, major banks—including ANZ, Westpac, and Commonwealth Bank—are predicting a potential rate cut as early as February.

If the RBA moves ahead, it would provide much-needed relief for mortgage holders and investors after more than a year of high interest rates.

Australian Broker - January 30 , 2025

𝐀𝐫𝐞 𝐲𝐨𝐮 𝐫𝐞𝐥𝐲𝐢𝐧𝐠 𝐨𝐧 𝐚 𝐫𝐚𝐭𝐞 𝐜𝐮𝐭?

With many Australians feeling the pressure of 13 consecutive interest rate hikes, 71% of mortgage holders are reportedly depending on a potential rate cut to help manage their repayments.

But relying on a decision that’s out of your hands can be risky.

Instead of waiting, there are proactive steps you can take to ease the financial strain.

Refinancing your mortgage or negotiating a better deal with your current lender could lead to immediate savings.

For example, reducing your interest rate by just 1% could save up to $230 per month on a $500,000 mortgage.

Even if the Reserve Bank announces a cut, the savings you generate now could help you get ahead, whether you choose to reinvest into your mortgage, pay down other debts, or boost your savings.

Don’t wait for change—take control of your finances today.

Source: Australian Broker, January 2025

As cost-of-living pressures rise, more homeowners are feeling the strain of managing mortgage repayments.

A recent survey by the Mortgage and Finance Association of Australia ( MFAA) highlights that while home loan serviceability remains a challenge, there are positive signs, including wage growth and tax cuts providing some relief.

Here are a few key takeaways from the report :

- Borrowers are facing new financial pressures, not just from mortgages but from everyday expenses like childcare and energy bills.

- The number of "mortgage prisoners" – those unable to refinance – has decreased, thanks to more flexible refinancing options.

- Brokers play a key role in helping borrowers find better deals or renegotiate with their current lender, potentially saving thousands over the life of the loan.

If rising costs are adding pressure to your budget, now might be a great time to explore refinancing options.

A conversation with a broker can help uncover opportunities to save on your home loan and improve your financial situation.