The RBA has now raised the cash rate twice this year and I’ve been fielding a lot of questions from clients. Is now is a good time to refinance? Fix a rate? Or simply reassess borrowing strategy?
What I’m seeing is that informed borrowers are taking action sooner rather than later, reviewing their loans, comparing offers, and seeking out competitive options. Banks are definitely reacting to the market, but it’s the borrowers who are proactive that are winning in this environment.
Here are answers to some of the questions I’ve been asked by clients this month.
What’s happened since the RBA’s February rate rise?
The Reserve Bank of Australia (RBA) lifted the official cash rate by 0.25% – twice – in February and March, taking it to 4.10%. These moves marked the first increases in more than two years. As expected, these decisions have prompted movement across the lending market and plenty of questions from homeowners and buyers about what it all means.
Have the banks passed on the increase?
Yes, most major lenders have moved their variable rates in line with the RBA’s decision. While each bank sets its own pricing, it’s common for variable rates to adjust shortly after a cash rate rise.
That said, not every lender moves at the same speed, and not every product is treated equally. Fixed rates, for example, are influenced more heavily by wholesale funding markets and future rate expectations rather than just the cash rate itself.
Are banks being competitive?
Even though rates have edged higher, lenders are still competing strongly for new business and to retain existing clients. Some major banks are advertising discounted variable rates and refinance-specific offers below their standard pricing, a clear sign that competition remains active in the market.
Behind the scenes, we’re also seeing discretionary pricing and tailored discounts being offered in certain scenarios when lenders want to secure or retain quality borrowers.
From my perspective, speaking daily with lenders, competition hasn’t disappeared. If anything, borrowers who are proactive and willing to review their loan are often finding there is still room to negotiate or improve their position.
What have homeowners been doing?
Some borrowers are refinancing to take advantage of sharper pricing or to restructure their loan in a way that suits their long-term plans. Others are choosing to make additional repayments while they can, reducing their principal in anticipation of possible future rises.
What I’m seeing is that clients aren’t panicking, but they are becoming more engaged. They’re asking questions, reviewing their options and wanting to understand where they stand.
What about the Perth property market?
Despite the rate increase, the Perth and broader WA property market has continued to show resilience. Tight housing supply and strong demand have kept prices moving upward, making it increasingly competitive, particularly for first home buyers trying to enter the market.
For buyers, this means preparation is critical. Pre-approvals, realistic budgeting and clear strategy matter more than ever in a competitive environment.
For existing homeowners, rising property values can present opportunities, whether that’s refinancing, accessing equity or upgrading. But it’s important those decisions are made carefully and strategically.
The bottom line
While the recent rate rise has shifted the conversation, it hasn’t stopped competition between lenders, nor has it slowed buyer demand in WA in any dramatic way.
The key takeaway? This is a market that rewards informed decisions.
If you’d like to review your current loan, explore refinance options, or understand how these changes affect your buying power, I’m always happy to have a conversation.