The RBA Just Cut Rates—Here’s Why Smart Investors Are Looking Beyond the Banks

For the first time in four years, the Reserve Bank of Australia (RBA) has cut the official cash rate, a decision that is set to have wide-reaching implications for the property and finance sectors. While much of the focus will be on how major banks adjust their lending rates, non-bank lenders like Holden Capital Partners (HCP) offer a different perspective, providing more flexible solutions tailored to the unique needs of borrowers and investors.

“As a non-bank lender, HCP operates outside the traditional banking system, structuring deals based on the risk appetite of all participants involved,” said Steve Wiltshire,  Non-Exec Chairman at HCP. “This allows us to continue delivering innovative funding solutions, regardless of short-term fluctuations in the official cash rate.”

Anticipating a Shift in Market Dynamics

While the immediate impact of the rate cut on deal flow may be minimal, HCP expects demand for development funding to progressively grow. With both major political parties prioritising housing supply in the lead-up to the next election, this announcement could serve as a catalyst for increased development activity.

“Developers, suppliers, and buyers will need time to adjust their expectations, but we anticipate a steady rise in demand for well-structured funding solutions,” Dan Holden, Founder, added. “We’re actively seeking well-considered opportunities from experienced developers to match with our growing investor base.”

Non-Bank Lenders: A Flexible Alternative

Unlike major banks, non-bank lenders operate in a more fluid market environment, often anticipating and adapting to economic shifts ahead of time. This latest rate cut had already been factored into many non-bank lending strategies, reinforcing the sector’s ability to offer competitive and flexible funding solutions.

“In many cases, our funding structures already reflect the direction the market is heading,” Dan Holden explained. “This enables us to provide greater flexibility in loan conditions, supporting developers through changing market conditions.”

Expanding Opportunities Across Sectors

Beyond residential property development, the rate cut is likely to positively impact other key sectors, particularly distribution and showroom developments. HCP is closely monitoring applications from these sectors as the broader economy adjusts to the RBA’s latest decision.

A Positive Signal for the Housing Market

While it remains uncertain whether this rate cut signals the start of a broader downward trend, the move sends a clear message: the housing sector is open for business. HCP remains committed to helping developers and investors navigate this evolving landscape with tailored funding solutions that align with their long-term goals.