📉 RBA Cuts Cash Rate to 3.85%: What It Means for Buyers, Sellers & Investors

By Najeeb Olomi – Licensed Real Estate Agent

In a move that’s making waves across the property market, the Reserve Bank of Australia (RBA) has officially reduced the cash rate from 4.10% to 3.85% —

So, what does this mean for you?

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💡 Why This Matters

The cash rate determines how much interest banks charge each other — and it directly affects home loan rates. A drop in the rate generally means cheaper borrowing costs, which can inject more life into the housing market.

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🏡 For Home Buyers

• Lower mortgage repayments: A 0.25% drop can save borrowers hundreds per year.

• Improved borrowing capacity: Lower rates can mean you qualify to borrow more.

• Increased competition: Expect more buyers entering the market soon.

Pro Tip: If you’re on a variable loan, now is the time to talk to your broker. And if you’re buying, get pre-approval updated.

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💰 For Sellers

• More buyers in the market means higher demand and stronger sale prices.

• The psychological impact of a rate cut often boosts buyer confidence.

• Now is a smart time to list—while the momentum is fresh.

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🏘️ For Investors

• Rental demand remains high across Victoria’s growth corridors.

• Cheaper finance makes expanding portfolios more attractive.

• Yields stay strong, while borrowing gets easier.

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📊 Market Outlook

Economists believe this rate cut could be the start of a new cycle—one that favors homeownership, market confidence, and growth. As more buyers gain access to affordable lending, property activity in Victoria is expected to pick up in the coming months.

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Final Thoughts

The RBA’s decision to cut the cash rate to 3.85% marks a turning point for Australia’s housing market. Whether you’re buying, selling, or investing, this could be your moment to act.

📞 Ready to take the next step in Victoria’s changing market?

Let’s talk. Najeeb Olomi – Your trusted real estate expert.