Rate Cuts Are Here! How to Seize the Opportunity and Save Thousands — Sydney Auction Clearance Rate at 65%

Week’s Key Focus

Following the Reserve Bank of Australia’s first interest rate cut in four and a half years and growing global economic uncertainty, expectations for further and faster rate cuts are heating up in the Australian market. Major bank ANZ has brought forward its forecast for the first rate cut to next month and has not ruled out the possibility of a “double cut.” All major banks now expect at least three rate cuts this year, with some predicting as many as four or five. This presents a prime opportunity for savvy mortgage holders to refinance and significantly reduce their repayment burden. A survey by Canstar shows that after the February rate cut, more than half of borrowers on variable rates were considering refinancing, while data from settlement platform PEXA indicates an 8.4% year-on-year surge in refinancing activity.

Rate cuts not only ease current repayment pressure but also improve borrowing capacity, giving those previously constrained by strict serviceability tests a renewed opportunity to secure better loan deals. Non-bank lenders, which are not regulated by APRA, offer more flexible approval processes—though borrowers should be cautious, as some products may lack genuine offset accounts or not be protected by the government deposit guarantee scheme.

For example, with a $500,000 mortgage and an LVR below 80%, smaller lenders such as Bank of China are offering rates as low as 5.68%, compared to an average of 6.7% at the big four banks. That equates to the benefit of four RBA cuts in advance, saving borrowers up to $315 per month. As the official easing cycle begins, this kind of “instant refinancing dividend” can become a powerful tool for households looking to relieve financial stress.

However, while chasing lower rates, borrowers must also consider other features—such as the need for an offset account or potential tax implications for investment properties. Financial experts advise seeking tailored advice based on individual circumstances to ensure refinancing not only reduces interest but also aligns with long-term financial goals without introducing new risks.

Roseville

Auction Results Last Week

Sydney: 1304 properties were scheduled for auction, with 820 results reported and 535 sold, resulting in a clearance rate of 65%. The total auction value reached AUD 631,331,787, with a median house price of AUD 1,560,000.
Melbourne: 1191 properties were scheduled for auction, with 864 results reported and 580 sold, resulting in a clearance rate of 67%. The total auction value reached AUD 464,567,364, with a median house price of AUD 1,000,000.