Big news is brewing for mortgage holders and property investors across Australia. With global markets rattled by Trump’s new tariffs, the Reserve Bank of Australia (RBA) could soon step in with multiple interest rate cuts—and it could happen as soon as this May.
💡 What’s happening?
Market analysts are now expecting:
Up to 4 interest rate cuts this year.
A possible supersized cut of 0.50% at the RBA's next meeting.
A shift that could save Aussie homeowners up to $4,308 a year on a typical $600,000 mortgage.
Why?
Recent global uncertainty triggered by the US tariff shock has sparked volatility in financial markets. Economists are urging the RBA to move quickly, much like it did during the pandemic and the GFC, to stabilise the economy.
🔍 What does this mean for property investors?
If rate cuts go ahead as forecasted, you could benefit from:
Lower borrowing costs, meaning increased cash flow on investment properties
Higher serviceability, giving you access to more borrowing power
A potential boost to property demand and prices as affordability improves
The Big Four banks are all predicting rate cuts, with cash rate targets heading towards 3.1%–3.35% by early 2026. This environment could open doors for investors to get in ahead of the curve.
✅ Identify high-performing property opportunities
✅ Secure finance solutions that maximise your position
✅ Build a resilient, income-producing portfolio even during uncertain times
🏙 Why Melbourne Should Be on Your Radar Before the Rate Cuts Hit
Melbourne is shaping up as one of Australia’s most compelling investment markets in 2025, and here’s why savvy investors are getting in ahead of the RBA’s expected rate cuts.
📉 Interest Rate Cuts = Better Buying Power
With market analysts forecasting up to four rate cuts this year, Melbourne property investors could soon enjoy:
Lower repayments on new investment loans
Greater serviceability for higher borrowing capacity
Improved cash flow on rental properties
But those who move before the cuts are best positioned to capture capital growth as buyer demand accelerates with cheaper finance.
🏗 Melbourne: Under supplied & Undervalued
According to the Urban Development Institute of Australia (UDIA), Australia will be short 400,000 homes by 2029, and Melbourne is one of the hardest-hit markets.
Here’s what’s happening on the ground:
🏚️ Melbourne is currently 45,000 dwellings short of demand
📉 Building approvals are down 17% YoY, reducing future supply
🧑💼 Strong population growth and migration are pushing rental demand up
💰 Median house price sits at $937,000, still well below Sydney’s $1.3M—making Melbourne comparatively undervalued
This chronic supply gap is driving rental vacancy rates below 1.8%, creating the perfect storm for yield-conscious investors.
💡 Why Invest in Melbourne Right Now?
With the RBA expected to lower the cash rate towards 3.1%–3.35% by early 2026, those entering the Melbourne market now could benefit from:
🔺 Capital growth as buyer demand rebounds
🔑 Entry before the inevitable price surge caused by increased affordability
📈 Solid long-term fundamentals backed by strong population and infrastructure growth
🚀 Investor Insight
While Sydney remains Australia's prestige market, Melbourne offers better rental yields, lower entry prices, and stronger mid-term growth potential—especially in outer growth corridors where land supply is tightening and infrastructure investment is flowing.
👣 Next Steps?
Get ahead of the curve. Let’s explore high-performing Melbourne suburbs that combine:
Strong cash flow
Tight vacancy rates
Infrastructure-driven capital growth potential
Now might be the perfect time to review your borrowing position, update your strategy, or secure a high-yield investment property while rates are falling.
Contact us today so we can start Building Your Dreams.