Australians are becoming increasingly optimistic and motivated to refinance as home loan interest rates ease further, following the Reserve Bank of Australia’s (RBA) latest 0.25% official cash rate cut on 20th May—just months after the February reduction.
According to an industry report for the March 2025 quarter, 33% of respondents say they now feel more confident to purchase property thanks to falling home loan rates. This is up from 23% last quarter and more than double the sentiment recorded a year ago. The combination of lower rates, easing inflation, and increased market confidence is breathing new life into Australia’s property market.
Refinancing activity is surging, with the report showing a 30% year-on-year increase in the value of refinance loans—especially strong in South Australia and the Northern Territory, where volumes soared 44.3%. With back-to-back rate cuts from the RBA, Mates Rates expects this refinancing momentum to accelerate as more borrowers look to take advantage of improved deals.
Today’s borrowers are more proactive than ever, with 74% now reviewing their home loan at least once a year. This is a powerful shift from the old “set and forget” mindset. Mates Rates Mortgage Brokers are helping clients benchmark their current rates and, where beneficial, refinance to unlock exclusive Mates Rates Monthly Cash-back offers.
Investor activity remains strong, with investor loans up 18.5% year-on-year—driven by notable gains in NSW/ACT and Queensland. First-home buyers are also making moves: loan numbers are up 5.6%, and total loan values have jumped 12.3% year-on-year. Notably, about 20% of Gen Z buyers are receiving parental gifts toward their deposits, with contributions ranging from $10,000 to $500,000—a sign of how important family support has become in Sydney’s market.
Nationally, the average loan size rose 8.1% to $628,684, unlocking up to $1,570+ in cash-back based on Mates Rates’ exclusive offers from major lenders. WA posted the strongest loan growth at 12.3% despite having the lowest average loan value, highlighting broad-based buyer confidence.
With rates softening and new cash-back incentives available, Mates Rates stands ready to help more Australians save thousands over the life of their loan—while guiding both new and existing borrowers on their property journey.
