Welcome to our
October Newsletter

Entering the property market can feel like a big step, but for many Australians, the current environment could be opening the door to new possibilities.

With more choice available in many areas and less urgency than we’ve seen in recent years, buyers are taking the time to explore their options, compare properties and make more informed decisions before making a move.

If purchasing a property is on your radar this year, getting pre-approved on your finance could help to put you in a strong position when the right opportunity comes along. Whether you’re making an offer or bidding at auction, having a pre-approval can help you feel ready to move forward with confidence.

Interest rate news

In September, the Reserve Bank of Australia (RBA) raised the cash rate to a 15-year high with the fourth increase of the year.

The official cash rate is now sitting at 4.6%, its highest level since 2011.

“Since the previous meeting, some of the upside risks to inflation are materialising,” the RBA said in a statement, following the decision.

“There have been further disruptions to global oil supply and recent data suggest that growth and inflation in Australia have been higher than expected.

“The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed.”

Many lenders were quick to update this variable home loan rates following the 0.25% increase.

For borrowers with a $700,000 loan on an average variable rate, the latest increase is estimated to add around $107 to monthly repayments. As a result, many households are taking the opportunity to reassess their budgets, explore refinancing options and ensure their home loan remains competitive.

Recent research from Roy Morgan found that 32.3% of mortgage holders were at risk of mortgage stress in the three months to August 2026, highlighting the importance of understanding how changes in interest rates could affect individual circumstances.

Meanwhile, research suggests many Australian households are feeling less confident about the economic outlook, going down to about 20% following the latest interest rate increase.

Periods like these can be a valuable opportunity to review your home loan and ensure it still aligns with your needs and goals. Whether you’re looking to reduce your repayments, access different loan features or simply better understand your options, a home loan health check can provide greater clarity.

If you’d like to explore what’s available, we’re here to help.

The next cash rate decision will be announced on 3 November.

At this stage, economists are divided as to whether the RBA will raise the cash rate again, or leave it on hold for the remainder of 2026. Although, many unfortunately believe that rate relief could be more than a year away.

Home Value Movements

Housing values continued to soften in September, with national home values declining 1.1%, according to Cotality.

The largest falls were recorded in Brisbane (-1.5%) and Sydney (-1.4%), while Melbourne experienced a more modest decline of 0.7%. Darwin was the only capital city to record growth during the month, with values rising 0.4%.

Cotality research director Tim Lawless expects housing values to continue falling into 2027 because of higher rates.

While higher interest rates and ongoing cost-of-living pressures have contributed to softer demand, the changing market is also creating new opportunities for buyers. More properties are taking longer to sell, giving buyers additional time to compare options, complete their due diligence and negotiate on price.

Stock levels are also increasing across many markets. Although fewer new listings are coming to market than a year ago, the total number of properties available for sale remains significantly higher, providing buyers with greater choice.

Regional markets continue to show resilience, with values up 5.6% over the past year compared to a 1.8% annual decline across the combined capital cities.

Home Value Index

Ready to Buy?

With listings accumulating and prices dropping, there could be plenty of opportunities for buyers looking to make the most of the changing property landscape. To chat through your finance options, get in touch today and we’ll find you a competitive home loan that works for you.

Additional sources:

Cotality Daily Home Value Index: Monthly Values
https://www.corelogic.com.au/our-data/auction-results
https://www.realestate.com.au/auction-results

Could a slower market work in your favour?

Buying your first home can sometimes feel like a race against the market. For years, many buyers faced rising prices, fierce competition and the pressure to act quickly when the right property became available.

Today’s market is looking a little different.

With more properties available in many areas and less competition than we’ve seen in recent years, first-home buyers could have more time to explore their options, compare properties and make informed decisions before making an offer.

While affordability remains a challenge for many Australians, changing market conditions could create opportunities for buyers who are prepared and have their finance in order.

If you’re hoping to purchase your first home, here’s what you need to know about the current lending and housing market.

First-home buyers are taking a more cautious approach

Many aspiring homeowners are still keen to enter the property market, but higher borrowing costs and affordability challenges are encouraging buyers to take more time before making a move.

Recent data showed mortgage demand from first-home buyers fell 20.1% nationally compared to a year earlier, while the average first-home buyer loan size remains at a record high of $740,000.

Meanwhile, the Reserve Bank of Australia (RBA) raised the cash rate again in September for the fourth time this year in response to persistent inflation. It’s now sitting at 4.6% and many lenders were quick to update their variable home loan rates following the 0.25% increase.

Although that might sound discouraging, a slowdown in buyer activity can have a silver lining. With fewer buyers actively competing for properties in some markets, those who are financially prepared could find that they have more time to research, negotiate and make confident purchasing decisions.

More importantly, support remains available for eligible buyers. The Australian Government 5% Deposit Scheme allows eligible first-home buyers to enter the market with a deposit as low as 5%, without paying Lenders Mortgage Insurance (LMI).

The next cash rate decision will be announced on 3 November. At this stage, economists are divided as to whether the RBA will raise the cash rate again or leave it on hold for the remainder of 2026. However, many unfortunately believe that rate relief could be more than a year away.

For buyers who have been waiting for conditions to become a little less competitive, today’s market could potentially present an opportunity worth exploring.

Less investor competition

One of the biggest challenges first-home buyers have faced in recent years has been competing with investors. However, recent market changes appear to be reshaping that dynamic.

Following the Federal Government’s changes to negative gearing and capital gains tax settings, investor activity has slowed considerably. New investor loan commitments fell 8.6% in the June quarter, marking the steepest quarterly decline in almost four years.

While first-home buyer lending has also softened, the decline has been less pronounced, with approved first-home buyer loans falling 2.9% over the same period.

A reduction in investor demand could help ease competition in some parts of the market. For first-home buyers, that could mean more choice, more time to consider a purchase and, in some cases, greater negotiating power than during the highly competitive conditions seen in recent years.

A slower market is creating more choice

Property prices have continued to ease in many parts of Australia, with national housing values declining 1.1% in September. Brisbane recorded the largest monthly decline (-1.5%), while Darwin was the only capital city to see values rise.

At the same time, housing turnover has slowed and properties are generally taking longer to sell. While fewer homes are being listed for sale, the increase in selling times has led to a build-up of available stock across many markets.

For first-home buyers, this could create a more favourable buying environment than we’ve seen in recent years. More available properties can mean greater choice, less pressure to make rushed decisions and more opportunity to negotiate before making a purchase.

Of course, every market is different, but buyers who have their finance organised could find they’re in a stronger position to take advantage of opportunities as they arise.

What this means for first-home buyers

There’s no denying that higher interest rates have made an impact for many first-home buyers. Borrowing power has reduced, repayment costs have increased and affordability remains a key consideration when planning a purchase.

As a rough guide, a one percentage point increase in mortgage rates can reduce maximum borrowing capacity by around 10%, although the impact varies depending on a buyer’s income, expenses, existing debts and the lender’s assessment criteria.

However, borrowing capacity is only one part of the equation.

While higher rates have made it more challenging for some buyers to enter the market, they have also contributed to less competition, softer prices in many areas and a more balanced market overall. Buyers who have their finance organised could find that they have more choice and more scope to negotiate than they would have during the highly competitive conditions of recent years.

For many first-home buyers, success in today’s market isn’t just about how much they can borrow. It’s about being prepared to take advantage of opportunities when they arise.

Like to discuss your finance options?

The Australian property market has shifted throughout the year, but successful purchasing comes down to preparation, understanding your borrowing options, and having a clear plan.

As your finance broker, we can give you a solid understanding of your borrowing capacity, as well as give you more information on any first-home buyer government incentives that could help you get a foot on the property ladder.

Get in touch today.

Buying with confidence: How to spot common red flags

Purchasing, selling or renting a property involves sharing personal information, signing important documents and transferring large sums of money. While these processes are generally safe, it pays to understand some of the common warning signs that can arise throughout a property transaction.

According to the National Anti-Scam Centre, Australians reported losing more than $2 billion in scam-related losses in 2025. As technology continues to evolve, so too do the methods used by scammers, making awareness and verification more important than ever.

The good news? A few simple checks can go a long way towards helping protect your finances and giving you greater confidence throughout your property journey.

Rental listings that deserve a second look

With this type of scam, the scammers create fake private rental property listings, usually on a consumer trading website.

When searching for a rental property, it’s worth taking the time to verify information before making any payments.

Some fraudulent listings may advertise unusually low rental prices, encourage renters to secure the property quickly, or avoid arranging an in-person inspection.

A good rule of thumb is to take extra care if you’re asked to pay a bond, rent or holding deposit before inspecting a property or completing the appropriate paperwork.

Payment redirection scams

One area receiving increasing attention is payment redirection.

This can occur when a buyer receives an email that appears legitimate and contains updated payment instructions. As these messages can closely resemble genuine email communications, it can sometimes be difficult to identify them at first glance.

In fact, a PEXA survey found many Australians had difficulty identifying fraudulent email addresses in test emails, highlighting how realistic some communications can appear.

For this reason, it’s always a good idea to independently confirm bank account details before transferring significant funds, particularly during a property transaction.

A few signs to look out for

While every situation is different, it could be worth taking extra care if you notice:

Pressure to make a payment immediately
Requests for money before inspecting a property
Changes to payment instructions or bank account details
Difficulty verifying the identity of the other party
Email addresses that look unusual or contain small spelling changes
Communication that feels inconsistent with previous interactions

These signs don’t automatically indicate a scam, but they might warrant a closer look before proceeding.

Tips to help protect yourself

Protecting yourself doesn’t have to be complicated. A few sensible precautions can make a big difference:

Follow Scamwatch’s “Stop. Check. Protect.” approach.
Take your time and avoid making financial decisions under pressure.
Independently verify payment details using a trusted phone number.
Pay attention to Confirmation of Payee notifications from your bank.
Be cautious when clicking links in unexpected emails or text messages.
Use trusted and secure payment platforms where available.
Research rental listings carefully before transferring funds.
If you believe something isn’t right, contact your bank as soon as possible.

How we can help

Buying a property involves many moving parts, from finance applications through to settlement.

Working with a broker gives you an experienced professional who can help guide you through the process, explain what to expect and provide an additional layer of support whenever questions arise.

If you’re planning to buy, refinance or invest, get in touch to discuss your goals and the next steps in your property journey.

How you can use 'Rentvesting' as a path to property ownership

For many Australians, the path to property ownership looks different to what it did a decade ago.

With property prices remaining high in many popular suburbs, buyers are increasingly exploring alternative ways to enter the market without putting their lifestyle on hold.

One strategy that continues to gain attention is rentvesting. While market conditions have changed, it remains a practical option for Australians who want to start building wealth through property while maintaining the flexibility to live where they choose.

What is rentvesting?

Rentvesting is when you rent where you want to live and buy where you can afford.

Instead of purchasing a home to live in, you buy an investment property in a location that fits your budget and financial goals, while continuing to rent in an area that suits your lifestyle, work or family needs.

For many Australians, rentvesting provides an opportunity to enter the property market sooner without needing to compromise on location or lifestyle.

Why rentvesting continues to appeal

Although market conditions continue to evolve, rentvesting remains an attractive option for many buyers looking for a different path into property ownership.

1. It could help you enter the market sooner

Saving a deposit to purchase a home in a highly sought-after suburb can take years.

By purchasing in a more affordable location, some buyers may be able to enter the market sooner and begin building equity while continuing to save for future goals.

2. It allows you to prioritise lifestyle and flexibility

Many Australians value being close to work, family, schools, public transport or lifestyle amenities.

Rentvesting can allow you to enjoy the benefits of living in your preferred area without needing to buy there immediately.

3. It creates opportunities beyond your local market

One of the advantages of rentvesting is the ability to consider opportunities in different locations rather than being limited to where you currently live.

This may give buyers access to more affordable properties, stronger rental demand or markets that align with their long-term investment objectives.

4. It can support long-term wealth building

Like any property investment, rentvesting can provide the potential for rental income and long-term capital growth.

While property values can rise and fall and returns are never guaranteed, some buyers view rentvesting as a way to begin building a property portfolio while maintaining lifestyle flexibility.

How has the market changed?

Rentvesting first gained popularity during a period of low interest rates and strong property growth.

Today’s market is different, but that doesn’t necessarily mean the strategy no longer works.

Property prices in many desirable suburbs remain out of reach for some buyers, which is one reason rentvesting continues to be part of the conversation. At the same time, investors are becoming more selective and focusing on factors such as location, rental demand, cash flow and long-term growth potential.

In other words, successful rentvesting is less about chasing short-term gains and more about having a clear strategy.

Things to consider before rentvesting

1. Understand the full cost picture

Rentvesting means managing both your rental expenses and the costs associated with owning an investment property.

Mortgage repayments, council rates, insurance, maintenance and property management fees should all form part of your budgeting process. This means that understanding your cash flow position is essential before proceeding.

2. Lending requirements may differ

Investment loans can have different lending criteria and could attract different interest rates compared to owner-occupier loans.

Speaking with a broker can help you understand your borrowing capacity and the options available to you.

3. First-home buyer incentives may vary

Depending on the property you purchase and how it is used, your eligibility for certain grants or concessions might be affected.

As these rules differ between states and territories, it is important to understand how they apply to your situation.

4. Consider the tax implications

Investment properties come with various tax considerations, including rental income, deductions and potential capital gains tax obligations.

Seeking advice from a qualified accountant can help you understand the implications before making a decision.

Is rentvesting still worth considering?

The biggest challenge isn’t necessarily deciding whether you want to own property. It’s finding a realistic pathway into the market.

While rentvesting might not be the right fit for everyone, it remains a strategy worth exploring for buyers who want greater flexibility, are priced out of their preferred location, or are looking for alternative ways to start building wealth through property.

The key is choosing a strategy that aligns with your circumstances, goals and budget.

Ready to explore your options?

Whether you’re looking to buy your first property, invest, or understand whether rentvesting could work for you, we can help you explore the options available.

Get in touch today to discuss your goals and take the next step with confidence.

Welcome to our October Newsletter