What the next RBA cash rate decision means for you: our guide for property owners, buyers & sellers

As the Reserve Bank of Australia (RBA) prepares for its next cash rate announcement on July 8, 2025, speculation is mounting across the financial and property sectors. With the cash rate currently sitting at 3.85%, all signs are pointing to the possibility of another drop. 

The cash rate, set by the RBA, is a key factor that influences interest rates, mortgage repayments, and overall housing market activity. Whether it drops or stays the same, the cash rate can significantly impact property owners, buyers, and sellers. For property owners and those considering transacting in the property market, what can you expect next week? 

To help you stay one step ahead, here’s what the upcoming decision could mean for you, depending on which way it goes. 

If the cash rate drops 

A rate cut typically leads to lower interest rates on home loans, and that can have a ripple effect across the property market. 

For homeowners: 

A drop in rates could ease the pressure on your mortgage. 

“Lower repayments mean more money back in your pocket or a chance to pay down your loan faster or refinance to a better deal,” says Travis Coleman, Acton | Belle Property and Hockingstuart Head of Western Australia.  

For buyers: 

Cheaper borrowing costs can boost your budget and make home ownership more accessible. But increased competition could also drive up prices, especially in high-demand suburbs. It’s a classic trade-off: easier access to credit, but potentially higher property prices. 

For sellers: 

More active buyers mean faster sales and stronger offers. A rate cut tends to spark market movement, which could push values higher, particularly in areas with tight supply. If you’ve been waiting for the right moment to list, this could be it. 

If the cash rate stays the same 

Should the RBA decide to hold steady at 3.85%, it sends a clear signal: a balanced, cautious approach to inflation and economic recovery. 

For the market overall: 

Stability is no bad thing. We’ve already seen signs of steady recovery in major cities, and a consistent rate gives buyers and sellers the confidence to plan, act and negotiate without the pressure of sudden changes. 

For homeowners: 

No change means predictable repayments, which is great for budgeting and longer-term planning. You’ll know where you stand, and that certainty counts. 

For buyers: 

A steady rate provides clarity around borrowing costs, helping with loan planning. If rates remain on the higher side, however, your borrowing capacity might still be limited, particularly for those stretching to enter some of the more competitive markets. 

For sellers: 

It all comes down to buyer sentiment. If confidence holds, demand should remain steady. But if concerns about the cost of living or economic uncertainty creep in, we may see a more cautious market with longer selling times. 

The bottom line 

Whether the cash rate drops or holds next week, the RBA decision will impact affordability, buyer activity, and confidence across the property market, giving way for greater opportunity. 

Here’s what to consider: 

• Homeowners: It could be a great time to explore refinancing or review your loan strategy.  

• Buyers: A steady or falling rate can boost clarity around repayments, reassessing your budget now could help you move sooner. 

• Sellers: Stable conditions often support strong buyer confidence, especially in well- positioned markets. 

While we can’t predict every move, staying informed means you’re well-placed to make smart, timely property decisions.