1 More Sleep Until the RBA Meeting, Plus 3 Mortgage Myths Debunked.
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🏡 Best Foot Forward Mortgage Solutions Newsletter
1 More Sleep Until the RBA Meeting… The Suspense Is Killing Me! 😆
We’re all holding our breath—will the Reserve Bank of Australia finally deliver that long-awaited rate cut?
Here’s what the big four banks are forecasting ahead of the May 20th meeting:
🔮 Lender Forecasts
CBA: Expects a 25 bps cut in May (to 3.85%), with further cuts in August and November—ending 2025 at 3.35%.
NAB: More aggressive—predicts a 50 bps cut in May, with more to follow, reaching 2.6% by early 2026.
ANZ: Forecasts three 25 bps cuts (May, July, August), with a 3.35% cash rate by August.
Westpac: Also sees a 25 bps May cut, with four in total through 2025, ending at 3.35%.
🗞 A Reuters poll echoes these forecasts—most economists are tipping a 25 bps cut on May 20, followed by more cuts later in the year.
📈 Despite stronger-than-expected inflation, wage growth, and 89,000 new jobs in April, CBA says we’ve “slayed the inflation dragon.” But some experts remain cautious—strong wages and a tight labour market could keep inflation sticky.
🎯 Stay tuned. The RBA decision is just around the corner—and it could be a game-changer.
💬 3 Australian Mortgage Myths Debunked
1️⃣ Myth: You need a 20% deposit to buy a home.
✅ Reality: While a 20% deposit helps avoid LMI, some lenders waive it with just 10% for eligible professionals. First Home Guarantee participants can even buy with just 5% and no LMI.
2️⃣ Myth: The lowest interest rate is always the best deal.
✅ Reality: Low rates can come with high fees and fewer features. Always compare the comparison rate—and make sure the loan fits your long-term strategy.
3️⃣ Myth: You can’t refinance if your property’s value has dropped.
✅ Reality: You may still be able to refinance—especially if you’ve paid down your loan or your lender offers flexible serviceability options. Let’s explore what’s possible.
📞 Want to discuss your options before the RBA announcement?
Book a complimentary strategy session and ensure your finances are ready —no matter how the rate goes.
