Welcomed Cozzie Livs Relief for Mortgage Holders

The Reserve Bank of Australia (RBA) has just (18/02/2025) handed down a 0.25 basis point cut to the official cash rate, bringing it down to 4.1% — a much welcome relief for mortgage holders who’ve been sweating bullets over their repayments. If you’ve been rationing your smashed avo toast to make ends meet, this might just be the breather you needed!

What This Means for Apartment Owners

If you’ve got a variable-rate mortgage, congratulations! You just scored a small win. The big banks — Westpac, Commonwealth Bank, NAB, and ANZ — are all passing the savings on. If you’ve got a $600,000 loan, you’ll save about $92 a month — enough to cover your coffee addiction (with maybe a cheeky muffin on the side). If your loan’s sitting at $750,000, that’s an extra $115 in your pocket, and for those juggling a $1 million mortgage, you’re looking at $153 in monthly savings. Not exactly a winning lotto ticket, but hey, every little bit counts!

If your loan’s sitting at $750,000, that’s an extra $115 in your pocket

What About Apartment Buyers?

If you’ve been eyeing off that dream apartment, this rate cut could mean you can borrow more. Canstar reckons an average-income earner might get around $12,000 extra in borrowing power, while couples could see a boost of about $23,000. But hold your horses, lower rates can also drive property prices up, so don’t go throwing your deposit at the first overpriced shoebox you find. Do your homework and make sure you’re not stretching yourself too thin! As some have learnt the hard way, interest rates can go up, and go up fast!

Thinking About Refinancing?

If your mortgage is feeling a little too spicy for your liking, now might be a great time to refinance. With rates dropping, lenders will be keen to win your business with more competitive offers. But before you go jumping ship, make sure to check for sneaky fees, break costs, and the fine print (nobody likes surprises, especially when they cost money). A chat with a mortgage broker might help you make the smartest move.

Bigger Picture Stuff

The RBA’s decision is all about keeping inflation under control while making sure people can still afford to, well… live. Inflation’s cooled off to 2.4% from its previous 7.8% peak (phew!), so the goal is to keep things stable without tanking the economy. The good news? Borrowers get a break. The bad news? Savers might see lower returns. Swings and roundabouts, as they say.

We've Got Your Back?

Whether you’re a proud apartment owner, a hopeful buyer, or just trying to make sense of it all, having the right team in your corner is key. That’s where Compass Strata comes in. As experienced strata managers, we know a thing or two about balancing the books and keeping owners corporations in check. Need help navigating budgets, levies, or financial planning for your building? Compass Strata has got you covered. Reach out today and let the experts take the stress out of strata management!