In this episode of the Australian Property Investment Podcast, host Aaron Christie-David and guest Damien Walker break down the surprise August 2025 RBA rate cut and its implications for mortgage holders, investors, and the broader housing market.
With the RBA dropping the cash rate by 0.25%, this move signals a shift many have been anticipating and it’s already shaking up buyer sentiment, borrowing power, and lender competition. Here’s everything you need to know.
Rate Cut Confirmed: What Happened?
After months of speculation, the Reserve Bank of Australia made its move on Tuesday, announcing a 25 basis point rate cut. This marks the first cut in over a year, and it’s been met with enthusiasm from borrowers across the country.
As Aaron puts it, “Awesome news for people with mortgages – it’s even better news to people trying to get into the market.”
The cut wasn’t just a symbolic move, it’s already having a tangible impact.
One of the most significant developments was Macquarie Bank’s swift response. By Wednesday morning, they had already passed on the full 0.25% rate cut, effective from Friday.
This immediate action puts pressure on the Big Four banks to follow suit. Damien and Aaron discuss how this competitive move can force a ripple effect across the lending market, ultimately benefiting borrowers.
“Macquarie has passed on the full rate cut… as of Friday. That’s a major move in the market,” Aaron said.
With Macquarie’s rate drop already in play, other lenders are now in the spotlight – especially as the spring property season kicks off.
What It Means for Mortgage Holders
For existing borrowers, this rate cut can have a few direct effects:
- Lower repayments: A 0.25% cut could mean thousands in annual savings for variable-rate mortgage holders.
- Increased cash flow: For investors, the boost in cash flow helps offset rising living costs and may allow for reinvestment or portfolio expansion.
- Confidence: The psychological boost that comes with a rate cut can increase borrower sentiment and reduce financial stress.
As Damien puts it, “This is not just a rate cut, it’s a mindset shift.”
How It Affects Borrowing Power
The biggest winners in the short term? Aspiring homebuyers and refinancers.
With lower rates, borrowing power goes up. This is especially crucial in a market where serviceability buffers and cost-of-living pressures have reduced what many buyers can access.
- A rate cut typically increases maximum borrowing capacity by 5–10%
- Lower serviceability assessments mean more buyers can qualify for loans
- Paired with lender cashbacks and incentives, it makes entering the market more viable
Aaron and Damien both note this is a timely advantage as we head into the spring selling season.
The Spring Surge: Timing Couldn’t Be Better
The timing of this rate cut couldn’t be more strategic.
- Listings usually increase in September and October
- Buyers and sellers are more motivated after winter
- Confidence in the market is higher with lower rates
“This is the catalyst a lot of people were waiting for,” says Damien. “It’s a signal from the RBA that they’re willing to support the economy and the property market.”
The guys predict a lift in buyer demand and renewed interest from investors, especially those who’ve been sitting on the sidelines due to high rates or uncertain conditions.
While a single rate cut doesn’t mean we’re back to ultra low rates, it does create a window of opportunity for savvy investors. Here’s what Aaron and Damien recommend:
- Review your lending – Check with your broker if your current rate is still competitive.
- Run the numbers again – Increased borrowing capacity might open doors to opportunities you ruled out months ago.
- Act quickly – Early movers tend to benefit most, before the market adjusts to the new conditions.
They also caution that while this move is positive, it’s essential to remain financially disciplined and ensure your buffers are in place.
One of the biggest takeaways from this episode is the importance of moving from hesitation to action. Many buyers and investors have been “waiting for the bottom” or for more favourable lending conditions.
Well, this is the moment.
A rate cut means:
- More affordable debt
- Greater buying power
- Increased market confidence
Aaron encourages listeners not to delay: “If you were waiting for a sign… this is it.”
Next Steps
Whether you’re a homeowner looking to reduce repayments, or an investor waiting for the right conditions to expand, this rate cut changes the game.
Book a free 15 minute strategy session with our team to understand how the rate cut can impact your property plans and what moves you can make today.
👉 Click here to book your strategy call
Or catch the full episode of the Australian Property Investment Podcast to hear the full breakdown from Aaron and Damien.
A single rate cut could be your best opportunity all year – don’t miss it.
