How Borrowers Are Reacting To RBA Cuts

If you’ve been tracking the cash rate closely, you probably noticed something odd earlier this year: the Reserve Bank of Australia made two rate cuts in a matter of months—but only one of them really made headlines with borrowers.

At Home Loan Experts, we saw it firsthand.

Our Customer Relationship Manager, Sagar Gauchan, noted that the May rate cut failed to generate the same buzz, citing callback requests down 77% from February and that drop continued the following week, down another 67%.

‘A Bit of a Pickup’ But Not From New Customers

Senior Mortgage Broker Jonathan Preston noted that while there was “a bit of pickup,” most of it came from returning customers rather than new enquiries.

That’s telling.

It suggests that many borrowers had already made their moves—or at least laid out their plans—after February’s rate change.

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Why Didn’t Borrowers React The Same Way In May?

There are three reasons why.

1. The First Rate Cut Was A Shock

February’s rate cut was the first in over four years. It marked a major shift in monetary policy, and for many borrowers, it was the signal they’d been waiting for.

2. Borrowers Anticipated The May Cut

There was already strong speculation that a second cut would follow. For proactive borrowers, that meant taking action early, adjusting their strategy, refinancing, or locking in a deal before the next announcement.

3. A More Strategic Mindset

It’s clear many borrowers are no longer reacting impulsively to rate changes. Instead, they’re thinking longer term. The slower May response could reflect a more measured, forward-looking approach to lending decisions.

What This Means for You

The cooling of interest after the May rate cut doesn’t mean opportunity is gone.

Quite the opposite.

If you’ve been waiting, there may be less competition and a chance to get ahead.

And with the RBA holding the cash rate in July, many homeowners and buyers are once again wondering: Is another cut coming or is this the new normal?

Either way, it pays to have a plan in place.

Find Certainty In Uncertain Times

If you’re not sure how the next RBA decision will affect your home loan plans, we’re here to help. Whether you’re buying, refinancing or simply weighing your options, our mortgage experts will walk you through it all, no pressure, no guesswork.

Please call us on 1300 889 743 or fill in our free assessment form, and we will assign you one of our specialist mortgage brokers to discuss your situation in detail with you.