On August 12, 2025, the Reserve Bank of Australia (RBA) lowered the official cash rate by 0.25%, reducing it from 3.85% to 3.60%, the third cut of the year, following earlier reductions in February and May.
Major lenders including Commonwealth Bank, Westpac, ANZ, NAB and Macquarie have announced they will fully pass on the cut to variable home loan customers.
What This Means for Your Wallet
Borrowers with a $700,000 mortgage could save approximately $1,104 per year in repayments if fully passed on.
Those with lower loan amounts also benefit, e.g. a $600k loan could mean around $100–$150 monthly savings depending on provider.
With lower repayments, your borrowing capacity increases, enabling eligibility for slightly higher loan amounts—though you may need to confirm with lenders.
What’s Happening in the Property Market
Across Australia, house prices are rising again, with national property values climbing around 1.4% in the June quarter, outpacing wage growth nearly twofold.
In Sydney, heightened demand has spurred a “buying frenzy” prior to the latest cut, especially among first-home buyers scrambling to lock in before prices climb further.
Loan sizes are trending upward: average new owner-occupier loans in NSW sit at around $816,000, up $18,000 over the past three months, reflecting growing purchasing power.
What This Means for Central Coast Buyers
Benefits
Lower mortgage repayments = improved cash flow, giving room to consider higher-value homes or better terms.
Enhanced borrowing power may open doors to more desirable locations or better quality properties along the Coast.
With margins tightening in mortgages, this could be the moment to secure a good deal before demand inflates prices further.
Challenges
Rate cuts often boost competition, even in regional markets, Central Coast included, making offers more competitive.
Buyers may feel pressured to stretch budgets, potentially increasing mortgage stress in future, especially if living costs remain high.
Smart Steps for Central Coast Buyers Right Now
Get pre‑approval early: Lock in your borrowing limit ahead of price and buyer demand surges.
Act decisively but within budget: Lower rates ease affordability, but rising interest and competition can narrow your window.
Explore refinancing or broker options: You may secure even better rates or terms than your current lender offers.
Seek local market insights: Demand varies. Know whether you’re targeting an area heating up or still offering opportunities.
Watch for further cuts (or not): Economists anticipate another cut before year’s end, depending on inflation and jobs data.
The RBA’s August 2025 rate cut offers a tangible boost in affordability for Central Coast property buyers. Lower repayments, more borrowing power and renewed buyer confidence. But as history shows, rate cuts also ignite competition and rising prices, especially where supply is stretched.
If you’re serious about buying and you’re already pre-approved this may be the moment to move. But above all, stay strategic, stick to your budget, rely on trusted local advice and move with purpose, not pressure.
If you’d like insights on specific suburbs or mortgage brokers and market data sources that are Central Coast specific, get in touch with our team today.
Want to learn more about what $800k–$1.5m buys you on the Central Coast vs Sydney in 2025? Read more on our recent blog here.