With multiple rate cuts tipped to land in 2025, homeowners have a golden opportunity to reassess their home loan strategy—and a mortgage broker can be your best ally in making the most of it.

Why Now? Because the Tide Is Turning

Major banks and economists now expect up to four rate cuts from the Reserve Bank this year. While these cuts might look small individually, combined they can translate into serious savings on your mortgage—if you act quickly and smartly.

This is where a mortgage broker adds value.

1. Access to Cheaper Rates, Fast

One of the most immediate benefits of rate cuts is that lenders start trimming their rates—and competition heats up. Brokers have real-time access to these deals across dozens of lenders, including smaller players and non-bank institutions that often fly under the radar.

💡 In 2024, the difference between average big-bank rates and lower-tier lenders was up to 1%. On a $500,000 loan, that’s worth more than $3,700 in annual savings.

2. Helping You Break Out of “Home Loan Jail”

When rates were rising, many borrowers became stuck—unable to refinance due to tighter lending rules and reduced borrowing capacity. But as rates fall, that borrowing capacity opens back up.

A mortgage broker can:

  • Reassess your serviceability with the new, lower rates.
  • Help you qualify under more favourable lending criteria.
  • Navigate stress test reductions and lender policy shifts.

They can also point you to lenders who use more flexible assessment models—especially non-bank lenders that aren’t subject to APRA’s strict serviceability buffer.

3. Knowing the Traps

Many lenders will advertise eye catching special rates to get your attention. However, the devil can be in the detail and, if you are not careful, you may end up worse off. For instance, some non-bank lenders claim to offer offset accounts, but in practice, the account behaves more like a redraw facility—without the same tax or accessibility benefits.

A broker can:

  • Distinguish between real offset accounts and the misleading ones.
  • Ensure you’re choosing a lender that meets both your financial and lifestyle needs.
  • Explain how the structure of your loan could impact repayments and future tax benefits (especially if your home becomes an investment property).

4. Speed and Strategy in a Refinancing Boom

We’re already seeing signs of a refinancing frenzy building. PEXA data shows a growing number of Australians are jumping at the chance to lock in lower rates or switch lenders.

Brokers:

  • Help you move fast while lenders are still offering promotional deals.
  • Compare apples to apples across dozens of products (including cashbacks, offset features, and fixed vs variable options).
  • Handle all the paperwork and follow-up for you—saving you time and hassle.

5. Keeping You Ahead of the Curve

Even one rate cut can boost your refinancing power. But four? That’s a game changer.

By working with a broker now, you’ll be ready to strike as new rate changes roll out. They can advise whether it’s better to refinance immediately or wait for the next move, depending on your goals—whether that’s reducing repayments, releasing equity, or just getting a better deal.

Bottom Line: You Don’t Need to Wait to Save

Expected rate cuts are unlocking new opportunities. But you don’t need to wait for the Reserve Bank to act—many lenders are already pricing in future cuts, which means you can benefit now.

A mortgage broker can be your partner in navigating this fast-changing environment, saving you time, money, and stress.

So, call me today on (02) 6686 6678 to find out how you can save!

 

Deb Fredericks

Senior Mortgage Broker

Korff Wealth