For conveyancers and property lawyers, the Reserve Bank of Australia’s (RBA) cash rate isn’t just an economic headline; it is the most volatile element to account for. Over the last year the RBA rates have significantly impacted the market, reaching the lowest level since April 2023 at just 3.6%. From a conveyancing firm perspective, the cash rates continue affect client decision-making and transaction stability. Managing this shifting landscape is strategically imperative for advising your clients and managing your firm’s workload.
RBA policy creates two distinct environments, each requiring tailored client counsel. When the RBA is easing (as it has been throughout 2025), clients are often driven by urgency and competition. They rush to secure lower mortgage rates, leading to emotional bidding and potential oversight. In fact, data from respondents in InfoTrack’s 2025 State of Real Estate Report showed that 59% of buyers and sellers completed their property journey in under 3 months. The conveyancer’s role of enforcing due diligence can be particularly challenging during this period as settlement timelines are exacerbated. Ensuring the best outcome for your clients while also conceding to the timely pressures of the market requires agility and adequate resourcing.
Conversely, rate tightening creates an environment of caution and instability. This increases the risk of finance falling through. Sales cycles are slower, with more renegotiations. In this environment, sellers face the challenge of potential delays and demand for longer settlement periods while buyers, often must compromise on location or size as the affordability gap increases. First home buyers are also one of the largest groups to be impacted during hikes. In 2024, InfoTrack’s State of Real Estate Report cited that 40% of first home buyers from the pool of respondents were negatively impacted by interest rates. Over the course of this year, the cash rate sat consistently around 4.35% which was the highest since the mid-2000s. For conveyancers, this market cycle creates a unique challenge, in which additional time must be spent on counselling clients to ensure they have a robust, updated pre-approval, that is stress-tested against potential future rate rises.
Both rate cycles directly influence your firm’s volume and ability to service clients. Whether it’s higher volumes through cuts or increased complexity through hikes, your firm’s strategy will set you apart. A successful approach might be two-pronged, such as outsourcing settlement procedures and utilising technology for operational efficiencies. Both solutions can support your firm to absorb sudden volumes or allow space for complex matters without sacrificing on thorough due diligence.
Establishing a comprehensive strategy for your firm will provide stronger assurances through cash rate fluctuations. By leaning on external support and the right technology, you can move beyond merely reacting to events and adopt a proactive, strategic posture that ensures both client stability and operational efficiency.
