Julian Finch: Loan Inquiries Explode Overnight – Rate Cut Triggers Market Lift-off

RBA rate cut will ignite the property market and push affordability further out of reach

The Reserve Bank of Australia’s recent rate cut has injected fresh energy into the property market, but Julian Finch, leading money expert, mortgage broker and founder and CEO of Finch Financial, has warned the combination of improved sentiment, government incentives and tight supply is already setting the scene for a major affordability squeeze and the RBA’s latest rate cut is only going to supercharge it.

“We can probably expect to see one more rate cut before the end of the year,” Finch said. 

“But any further easing beyond that is far from guaranteed. What we already have is a market that’s responding aggressively to even small signs of relief.”

He warned that the return of buyer confidence, coupled with government deposit schemes and a lack of new housing stock, is already driving demand particularly among investors and pushing prices higher.

“People think rate cuts will make housing more affordable, but they rarely do. They drive demand, increase borrowing power and send prices up. That’s what we’re seeing now and it’s only going to intensify if the RBA cuts again.”

With decades of mortgage brokerage experience, Finch has helped thousands of Australians successfully navigate the lending process. Finch Financial has one of the highest loan approval rates in the country, often securing approvals within minutes.

Affordability under siege

Finch said the growing gap between income growth and housing prices means affordability is already at crisis levels for many Australians. A second rate cut this year could tip the balance further out of reach for first home buyers.

“With rising cost of living pressures and wage stagnation, most buyers are already at their borrowing limits,” he said. 

“Another rate cut won’t suddenly make property accessible. It will make people feel like they have more buying power but that illusion evaporates the moment price competition increases.”

Investors will move first

Finch expects investors to dominate the next phase of growth, taking advantage of lower rates and high rental yields while first home buyers continue to navigate tighter credit conditions.

“Investors are in a stronger position to move quickly; they understand the game. A rate cut opens the door for them to re-enter, refinance and scale,” he said.

“Meanwhile, first home buyers are trying to keep up while facing rising prices and intense competition for limited stock.”

Time for strategic thinking

Finch urged borrowers to avoid emotional decisions based on rate movement hype and instead focus on long-term strategy and sustainability.

“If you’re buying, don’t just ask how much you can borrow, ask how much you can comfortably repay if rates shift back up in the next two or three years,” he said.

“If you already have a mortgage, now is the time to renegotiate, refinance or explore fixing part of your loan. Don’t wait for the next rate change to act.”

A fragile balance ahead

Finch said the RBA’s next move will have a significant psychological effect on the market, but the bigger issue is the structural imbalance between supply, demand and access.

“We may get one more rate cut, but that won’t fix affordability. What’s needed is smarter housing policy, increased supply and lending practices that prioritise long-term stability over short-term boosts,” he said.

“Another cut might keep the economy moving but if it fuels another property price surge, we risk leaving more Australians behind.”

Finch said investors and cashed up buyers are laughing. The latest RBA move has already kick-started the market and another rate cut is going to strap a rocket to it. Affordability is going to get worse, not better.