Welcome to our September Newsletter

Spring is here, and with it comes one of the busiest times in the property market. Longer days, blooming gardens and renewed buyer confidence make this season a prime time for selling – and competition is already heating up among buyers eager to secure their next home.

The latest cash rate cut has only added fuel to the market. In August, Australia’s median property price rose by 0.7% – the strongest monthly growth since May last year. With more interest rate cuts expected, this year’s spring selling season is shaping up to be one of opportunity for both buyers and sellers.

If you’re thinking about buying, now’s the time to get your finance pre-approved so you can move with confidence when the right property comes up.

Interest Rate News

The monthly Consumer Price Index indicator rose 2.8% in the 12 months to July, a larger-than-expected increase from the 1.9% rise in June.

The Reserve Bank of Australia (RBA) responded by cutting the cash rate in August to 3.6 per cent in a unanimous decision by the Board, while also flagging the potential for two or three more rate cuts to come.

All four major banks passed on the cash rate cut to customers by the end of August, providing mortgage relief to millions of borrowers. For example, those with a $500,000 home loan, that equates to roughly $74 in savings a month.

RBA governor Michele Bullock said the RBA was increasingly confident that unemployment would not rise and inflation would stay near the target level.

“That’s our best guess, and we’re looking to see that we continue on that path and, as we do, we can continue to lower interest rates,” she said.

What does this mean for you? Even a small reduction in your interest rate can help you reduce costs over the life of your loan. It’s a good time to book a home loan health check and see how your current loan compares.

The next RBA cash rate decision will be announced on 30 September.

Home Value Movements

National property values rose by 0.7% in August, taking the median home value to $848,858.

Brisbane led with a 1.2% jump, followed by Perth (1.1%) and Darwin (1%). Adelaide (0.9%) and Sydney (0.8%) also saw solid growth, while Melbourne (0.3%) and Canberra (0.4%) crept higher. Hobart was the only capital to record a decline, down 0.2%.

Cotality head of research Eliza Owen said the drivers of rising home values were straightforward.

“You’ve got more demand in the housing market, with real wages growth up to its highest level in five years, lower interest rates and more consumer confidence aiding housing purchases,” Ms Owen said.

“You’ve got about 120,000 properties on the market for sale right now, whereas usually this time of year, the five-year average would be 150,000. “So rising demand against tight supply is continuing to see a rise in home values.”

Ready to buy?

With fewer listings than normal for this time of year and strong competition among buyers for properties, this spring is shaping up to be a seller’s market.

That makes it crucial to have your finance sorted before you start making offers.

Pre-approval gives you the confidence to act and shows sellers you’re serious. If you’d like to be ready to move when the right property appears, get in touch today and we’ll help you line up the right finance.

Additional sources:

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

Big changes to the First Home Buyers 5% Deposit Scheme

From 1 October 2025, the government’s First Home Guarantee scheme will expand, making it possible for more Australians to buy a home with a deposit as low as 5%.

Whether you’re preparing to buy your first property or simply watching how the market shifts, these updates could play a big role in shaping your plans this spring.

What is the First Home Guarantee Scheme?

The First Home Guarantee is part of the Home Guarantee Scheme, an Australian Government initiative designed to help home buyers with a small deposit to purchase a property.

Under the scheme, eligible home buyers with a minimum 5% deposit can purchase a home without having to pay costly lender’s mortgage insurance. Housing Australia provides a guarantee of up to 15% of the property’s value to participating lenders, allowing purchasers to borrow up to 95% of the property’s value.

To be eligible, you must be a first-home buyer or not have owned a property in Australia in the last 10 years (applies to both in a joint application).

Previously, there were income caps applied ($125,000 for individuals or $200,000 combined for couples), along with property price caps and place limits.

What are the changes?

From 1 October 2025, the scheme will be expanded to help more Australians buy their first home. Labor originally planned to introduce these changes in 2026, but they are being brought forward.

These changes include:

No place limits: any Australian first home buyer who has saved a 5% deposit can apply.
No income caps: first home buyers with higher incomes can access the scheme.
Higher property price caps: for example, Sydney’s cap will increase from $900,000 to $1,500,000, and in Brisbane, it will rise from $700,000 to $1,000,000.
Simpler access in regional areas: Regional First Home Buyer Guarantee will be replaced by the expanded scheme.

So, should I refinance now or wait it out?

It’s hard to know exactly how soon the RBA will cut the cash rate again. While refinancing will depend largely on your individual situation and goals, there are mounting reasons why refinancing should be on your radar. At the very least, now is a good time to review your home loan to make sure it still measures up, particularly if you fall under any of the following categories.

You’ve been with the same lender for a long time If your current home loan was locked in at the cycle’s peak, you may be paying more than is necessary on your mortgage. If you’ve had the same home loan for several years, chances are you could be getting a more suitable offer with another lender, so it’s worth exploring your options and shopping around.

Your situation has changed Have your financial circumstances changed since you took out your original home loan? If so, all the more reason to consider refinancing to a home loan that marries with your current financial situation and long-term objectives.

Your debt is feeling overwhelming If you’re juggling multiple debts at once, such as a personal loan and credit card debt, it may be worthwhile considering debt consolidation. With debt consolidation, you essentially roll all your debts into your home loan. It means you only have to make one repayment, making it easier to manage your debt. It’s important to remember that you may end up paying more interest over the life of the loan if you go down this road, so speak to us and we’ll crunch the numbers for you.

You want to access your equity . Want to make a big-ticket purchase, like buying an investment property or doing a home renovation? Refinancing to access your equity could help you achieve these kinds of goals.

What does this mean for buyers?

For first-time buyers, the scheme could shorten the time it takes to save for a deposit. Let’s look at a few examples, courtesy of Cotality.

In Melbourne, the median home value is now $803,242. It would take the average first-time buyer nine years to save a 20% deposit of $160,685 (based on modelling income estimates from ANU Centre for Social Policy Research of median household income as at March 2025). However, under the scheme, they could save a 5% deposit of $40,171 in 2 years.

In Sydney, the median home value is $1,228,435. Saving a 20% deposit of $245,687 would take 13 years on average, but under the scheme, they could save a 5% deposit of $61,422 in 3 years.

What does this mean for property prices?

While the changes to the scheme are positive in the sense that more first-home buyers will be able to enter the market, some experts say the downside is that it may increase competition for housing stock and place upward pressure on property prices.

Treasury department modelling suggests the scheme will add 0.5% to home prices after six years. Other experts believe the scheme, combined with falling interest rates, will push prices higher than that and impact affordability.

Like to know more?

If you’d like to chat about your eligibility for the scheme, get in touch and we’ll run through the criteria. As your finance broker, we’ll explain your borrowing capacity, organise pre-approval with a participating lender and walk you through the home loan application process.

Get in touch today.

Refinancing is on the rise – what’s driving the trend?

With interest rates falling this year, more Australians are taking a fresh look at their home loans. In fact, close to 100,000 borrowers refinanced in the June quarter alone – that’s 21% higher than the same time last year. Put simply, more than 1,000 loans are being refinanced every day.

So, what’s driving this refinancing surge – and could it be worth considering for you too?

To reduce their interest rate or loan term

For many borrowers, the primary motivator to refinance is the potential to secure a lower interest rate with another lender.

With three cash rate cuts totalling 0.75% so far this year, there is fierce competition among home loan providers to lock in borrowers. Many lenders have reduced interest rates in the hope of getting more borrowers through the door, while holding onto existing ones.

Some borrowers are also choosing to refinance into shorter loan terms. If your income has grown or you’re in a position to pay off your loan sooner, this can reduce the overall interest paid across the life of the loan.

To access equity

Many borrowers choose to refinance in order to access the equity in their property. Equity is the difference between what you owe your lender and the current market value of your property.

With national home values on the rise for eight consecutive months and Australian house prices at a record national average, you may have more equity built up than you realise.

Refinancing allows you to tap into that equity, which can then be used for renovations, an investment property, or even helping your kids with education costs.

To access additional loan features

Some borrowers refinance to access loan features such as offset accounts or redraw facilities, which can help reduce interest while giving you flexibility with your repayments.

Others switch between fixed and variable rates, depending on what suits their situation. With recent rate cuts, some banks have lowered fixed rates, making them attractive to borrowers who want certainty over repayments.

To consolidate debt

For those with multiple different types of debt, such as a car loan, personal loan, home loan and credit card debt, refinancing to consolidate debt may be worthwhile.

Rolling all your debts into a loan with a lower interest rate and one repayment can be beneficial, but there are risks involved. It’s important to speak to a finance professional and weigh up your options before deciding whether debt consolidation is right for you.

Like to explore your refinancing options?

Experts expect refinancing activity to remain strong this year. If you’ve been with the same lender for a while, or if it’s been a few years since you reviewed your home loan, now could be the right time to see what’s available. Talk to us today and we’ll compare the market for you, step you through what potential options are available.

Should you buy new or established? Here’s what to consider

Buying a home comes with one of the biggest decisions you’ll face – do you go for a brand new build or choose an established property? Each option has its own advantages and trade-offs, and your choice often depends on your goals, lifestyle and budget.

Housing Industry Association (HIA) research found sales of new detached homes increased by 18.8% in the three months to June 2025 compared to the first quarter, representing a three-year high.

Here’s a closer look at the pros and cons to help you weigh up which could be the better fit for you.

The pros of buying new

Less repair and maintenance

Older properties can be costly to maintain, but with a brand new one, you’re unlikely to need to fork out much for repairs and maintenance, at least for the first few years. If there are issues with the building or appliances, they will likely be covered under warranty.

Energy efficiency

New homes have to meet certain energy efficiency standards, which can mean lower power bills and a more comfortable living environment. It also reduces your environmental footprint.

Room to customise

Depending on the new build, you may be able to customise the property as per your preferences, whether you want earthy colours and natural materials like wood and natural stone, or bold wall paper and art deco design vibes.

Renovating and transforming an established property, on the other hand, can be costly and time-consuming.

Depreciation opportunities

For investors, new homes can offer depreciation perks, which could improve tax savings. You may be able to claim wear and tear on a new property as a tax deduction and spread the costs over several years.

The potential downsides of buying new

Building can be stressful

Unlike with an established home, where you can usually move straight in after settlement, waiting for your property to be built can be stressful. Timelines and budgets can easily blow out, and there may be delays with council approvals or issues with the builder.

You may have to compromise on location

New builds in newer suburbs can sometimes lack the character of established suburbs, where the community and infrastructure has developed over time.

The capital growth potential could also be weaker in new developments, often due to large housing releases that saturate the market. It’s important to do your homework before deciding whether a location is right for you.

Other things to keep in mind

Government incentives can sometimes tip the scales. For example, the First Home Owner Grant may be available if you’re buying or building a new property, while some stamp duty exemptions or concessions apply to both new and established homes.

The rules around it being a new home or a substantially renovated one vary by state and territory, so look into what’s available in your area.

Like to chat further?

If you’d like advice about government incentives or stamp duty concessions, your buying capacity or pre-approval support with your finance, we can help. Get in touch today and we’ll walk you through the finance side of things and help you get into your own home sooner.