After The Reserve Bank of Australia (RBA) delivered its second rate cut this year bringing the official cash rate to 3.85%, borrowers will be hoping for another rate cut tomorrow when the RBA have their next meeting. But, what are the experts forecasting? 

Another rate cut would be a big win for prospective home builders and buyers, as well as homeowners, particularly those with a variable rate home loan. It will also increase people’s borrowing capacity making this month a fantastic opportunity to take advantage of improved lending conditions.

Our Home Finance Manager, Michael Chadwick has pulled together expert predictions from Australia's big four banks and breaks down what factors they consider when making their predictions and what can shift to alter these predictions

Expert predictions: will rates be on hold, go up or go down?

We’ve pulled together expert predictions from Australia's big four banks:

• ANZ expects two cuts this year around August and later, taking the cash rate to approximately 3.35%.
• NAB forecasts a cut in July, followed by additional reductions in August and November, targeting a terminal rate of 3.10%.
• Commonwealth Bank (CBA) sees two cuts in August and September, bringing the rate to 3.35% (but notes July could happen if data weakens unexpectedly).
• Westpac expects the RBA to hold in July, then deliver cuts in August and November, with the cash rate easing to 3.35% by year-end, and further cuts into early 2026. Westpac emphasises the RBA’s preference for “cautious and predictable” moves.

What could shift to alter these predictions?

• A sudden increase in wage or energy inflation could prompt the RBA to hold. 
• Stronger employment data might delay cuts. 
• A global economic or geopolitical shock could accelerate rate reductions.

What a rate cut could mean for borrowers?

Another rate cut would be a big win for prospective home builders and buyers, as well as homeowners, particularly those with a variable rate home loan. It will also increase people’s borrowing capacity making this month a fantastic opportunity to take advantage of improved lending conditions.

• Now’s the time to check in on your home loan—especially if you haven’t reviewed your rate in the past 6–12 months.
• Fixed-rate loans are starting to offer some value again, depending on your goals and how long you plan to hold the property.
• If you're on a variable rate, it’s worth reviewing your options and negotiating with your lender (or better yet, let us do it for you).
• Planning to buy? Getting pre-approval and understanding your borrowing power is a smart move in today’s climate.

Working with a mortgage broker

Clarendon Homes’ Construction Finance team, backed by Loan Market Elevate, has one of the largest panels of lenders of any mortgage broker group in Australia, working with Australia’s biggest banks plus more than 60 specialist lenders.

 From assessing applicants’ borrowing potential to recommending loan options, the team guides customers through the whole process and ensures they move in on time – and what’s more, this service comes at no extra cost.

 “We have been able to help many customers save thousands of dollars on their home loans and helping put them in a much better financial position.” - Michael Chadwick, General Manager Home Finance for Clarendon Homes.

 For more information about Clarendon Homes’ Construction Loan Specialists, and for a quick estimate of how much you could borrow, talk to us today.