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Property prices in Melbourne and Sydney moved upwards for the first time since 2017, a move attributed by analysts to lower mortgage rates and improved sentiment in the market.

Melbourne and Sydney prices were up 0.2% and 0.1% respectively.

“These are the 2 cities where economic conditions are the strongest, where unemployment is the lowest, where jobs growth has been the highest”-Tim Lawless – Head of Research CoreLogic

These 2 cities led the market in the downturn and are now the first 2 to see a return to increases.  CoreLogic said it was an early sign that lower mortgage rates and improved sentiment were beginning to see a flow-on effect.

The rate of decline in prices in Melbourne and Sydney had been reducing in recent months. What this means is house price in Melbourne and Sydney are down 9.2% and 9.9% annually.

The improvement in the market since the start of the year has been largely organic. Since May however, we have seen a raft of events and announcements (For full analysis of changes check out our library of articles) .

  • The Liberal victory, which removed the uncertainty over changes to proposed changes to negative gearing and capital gains tax by the Labour party, has brought increased certainty and boosted confidence in the housing market.
  • APRA has moved to remove lending restrictions that limit borrower’s borrowing capacity. This change has not come into effect yet, but some estimates expect borrowing capacity to increase by as much as 8%. The proposal is still under review so watch this space.
  • The RBA just announced a second consecutive rate cut on Tuesday, bringing the cash rate down to just 1%.
Here is a table showing how Australia’s average mortgage sizes may be affected:



Loan amount examples Likely decrease in repayments
$150,000 $21.45 per month
$250,000 $35.75 per month
$350,000 $50.05 per month
$450,000 $64.35 per month
$550,000 $78.65 per month
$650,000 $92.95 per month


NAB, CBA and Westpac have all decided not to pass along all of the rate cut to customers. ANZ is passing along the full rate cut, which is unsurprising given its’ decision not to pass along the full cut last month drew criticism from Treasurer Josh Frydenberg.

By choosing not to pass on the Reserve Bank interest cut in full the Big 4 are set to earn an additional $354 million over the next year collectively according to comparison website Mozo. Taking into account last month’s cut as well the Big 4 are set to take an extra $547.6million over the next year by not passing along the cut to customers.

If you have a loan and aren’t seeing the full interest rate cuts passed on there is a compelling case for you to review your lending options now.

At Dollars With Sense we’re here to work through the different rates available from our wide panel of lenders with you and we’re always available to ensure you have the right financial solution for your current and future circumstances.

Enter your details below and we will do all the heavy lifting to get you a rate that could save you big!


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One of the things I appreciate the most about the Dollars with Sense team is how they are so honest about financial matters. They are not after promoting a certain kind of investment, but rather, they always emphasise what an average person should consider before jumping into a financial commitment. Dollars with Sense truly opened my eyes towards property investment, and I am so grateful that I get no-nonsense tips from these experts. I hope that Dallas and the team will continue to guide us in all money matters!