Australians have been feeling the pressure from high interest rates and the rising cost of living — but finally, there’s a light at the end of the tunnel with a rate cut expected next month and some experts predicting another 3 rate cuts by the end of the year.
New inflation data released in April 2025 shows that the Reserve Bank of Australia’s (RBA) preferred measure of underlying inflation has fallen to 2.9%, back within its target range of 2–3% for the first time in over three years. This marks a major milestone in the fight against inflation, which peaked at 8% in 2022.
Why does this matter? Because it increases the likelihood of a cash rate cut at the RBA’s next meeting on May 19–20 — just two weeks after the federal election. Economists are now predicting a potential reduction in the official cash rate from 4.1% to 3.85%, with markets also pricing in the chance of up to four more cuts over the next year.
This could mean big savings for homeowners and borrowers.
What’s behind the shift in inflation?
While we’ve still seen price rises in essential areas like housing, education, and food, those increases have been balanced out by falls in household items, recreation, and furniture costs. The trimmed mean inflation — which strips out volatile price movements — came in at 0.7% for the quarter, and 2.9% for the year.
It’s not just economists paying attention. Treasurer Jim Chalmers said this result is a clear sign of “substantial economic progress.” And with inflation back within target, the Reserve Bank now has more room to reduce rates and help ease financial pressure on Aussie households.
What does this mean for your mortgage?
Lower interest rates mean lower repayments — and for homeowners, this is a golden opportunity to review your home loan, refinance, or negotiate a better deal.
Spiro Kolokithas, Managing Director and award-winning mortgage broker at What If We Finance, says now is the ideal time to take action.
“With inflation finally easing, the RBA has a clear path to start reducing rates — and that’s welcome news for anyone paying off a mortgage,” Spiro says.
“At What If We Finance, we’ve helped hundreds of clients save money by reviewing their home loans at the right time. Whether you’re coming off a fixed rate, looking to renovate, or just want peace of mind, a quick home loan health check could save you thousands. We’re here to make sure you don’t pay more than you should.”
What happens next?
The RBA will meet on May 19–20, and most experts agree that a rate cut is likely — though they also caution the central bank will watch global conditions and economic growth before making further moves.
Even if rates don’t move immediately, getting your home loan reviewed now means you’ll be ready to take advantage of market changes. Lenders are already adjusting rates and cash-back offers to stay competitive, and you don’t want to miss out.
Here’s how What If We Finance can help:
-Free home loan reviews – no cost, no obligation
– Access to over 40 lenders to find the most competitive rate
– Expert advice tailored to your financial goals
– Fast turnaround – so you don’t miss time-sensitive opportunities
– Award-winning service – recognised for Best Customer Service Victoria by MFAA in 2024.
Don’t wait – now is the time to act
As inflation cools and rates start to fall, homeowners who act early will be in the best position to benefit. Whether you’re a first home buyer, investor, or simply want a better deal, we’re here to help you make it happen.
Book your free home loan review today with Spiro and the team at What If We Finance. Let’s make sure your loan is working as hard as you are.
