Paramount Finance Australia 8/6/26 Paramount Finance Australia 8/6/26

Was your offset account flagged in the ASIC investigation?

So it turns out some mortgage offset accounts haven’t been working as intended, according to a recent investigation. Here’s how to check if your home loan offset account has actually been helping you save.

Offset accounts are popular among Australian borrowers, with more than one-in-two (55%) home loans now having an offset.

If that sounds like you, chances are you may be concerned about a recent investigation by the Australian Securities and Investments Commission (ASIC) that identified problems with some offset accounts.

To help relieve any worries you may have, we reveal the banks ASIC reviewed, the main problem areas, and what you can do to be sure your offset account is helping you save on loan interest.

How home loan offsets work

An offset account is an everyday transaction account linked to your home loan.

The offset account typically works like a normal account, letting you make deposits and withdrawals any time.

But instead of earning interest on the offset account, the balance of the account is deducted from – or ‘offset’ against – your mortgage when loan interest is calculated.

For example, if you have $600,000 remaining on your mortgage, and $50,000 sitting in the offset account, loan interest charges will be calculated on $550,000 rather than $600,000.

As your loan repayments stay the same, more of each repayment goes towards paying down the loan, rather than paying interest.

In this way, an offset account can help you clear the home loan slate sooner, and reduce the total interest you pay.

What ASIC found

As a mark of how popular offset home loans are, homeowners currently have around $349.1 billion sitting in offset accounts – a figure that’s risen 28% in the past two years.

This growth prompted ASIC to look at how offset accounts are managed across eight lenders – AMP Bank, ANZ, Commonwealth Bank, Westpac, Macquarie Bank, ING Bank, HSBC and Credit Union Australia (now Great Southern Bank).

Together, these lenders make up about 70% of the mortgage market.

ASIC’s review picked up several issues, but the majority (55%) of issues identified related to unlinked offset accounts.

This is where an offset account was opened, but never linked to the borrower’s home loan.

This means affected borrowers paid more in loan interest than they should have.

Meanwhile, a further 22% of issues identified related to offset accounts not being opened when they should have been.

What are banks doing to fix the problem?

Lenders have already paid over $55 million in customer compensation for offset account failures.

ASIC expects more compensation to be paid following its review.

In addition, ASIC has put all lenders on notice to sharpen their systems, and has warned it will continue to monitor offset accounts.

What can you do?

The ASIC report didn’t say exactly how many home loans were affected by offset account failures, nor did it say which of the eight lenders had the poorest track record.

However, the Australian Banking Association says problems were identified in “just hundreds” of the loans reviewed.

Still, that may be cold comfort if you’re affected.

The good news is that there are simple steps you can – and should – take to check if your offset account is working as it should.

A quick check is especially important if your loan has recently changed.

ASIC found problems with offset accounts were most likely to occur when a homeowner refinanced their loan or came off a fixed rate.

At this point, the link to an offset account can be broken, and you may need to contact your bank to re-set the link.

How to check if your offset account is working

To check if your offset account is linked to your loan, login to your banking app or online banking portal.

Click on your home loan account.

Then look for a section named ‘Manage’, ‘Offset Accounts’, or ‘Account Details’. This should show the account number of your linked account/s.

Or, take a look at your latest home loan statement.

It may display the account number of your linked offset account/s alongside the loan details, or in the section showing how loan interest was calculated.

If you are unsure, contact us and we’ll help you confirm.

How to avoid this common home buyer trap

Waiting for home prices to ‘bottom out’ before buying may seem like a smart strategy but it could work against you. Here are the risks of holding out and hoping for lower prices.

Waiting for home prices to ‘bottom out’ before buying may seem like a smart strategy but it could work against you. Here are the risks of holding out and hoping for lower prices.

It’s no secret that some of the heat is coming out of the property market.

Home buyers are now under less pressure to make a rushed decision, and more homes are coming onto the market, giving buyers greater choice.

But holding off and waiting for prices to reach a low point may be a high-risk strategy – and it could work against you.

We look at the potential pitfalls of trying to time the market with the aim of buying when prices are lowest.

Prices are cooling – not tanking

First, a quick recap of what’s happening in the property market.

Home prices are shifting downward or levelling off in some areas, mainly as a result of interest rate pressures, stretched affordability, and tighter investor tax rules.

But these are far from ‘fire sale’ conditions.

As a guide, June saw values fall in Sydney (down 1.2%), Melbourne (1.0%) and Canberra (0.6%), Cotality data shows.

However, prices continued to climb across Brisbane (up 0.3%), Perth (0.7%), Darwin (1.4%) and Hobart (0.6%) as well as regional markets (up 0.3%). In Adelaide values held steady for the month.

How home values move in the months ahead is unclear. And frankly, not even the experts agree on this.

What we can say is that no one rings a bell to announce that prices have bottomed out.

And this is where those who put buying plans on the backburner with the expectation of further price falls can face key risks.

It can mean facing more competition if other buyers pile into the “weak” market, potentially forcing prices to rise again.

It may also mean missing out on a property that ticks all your boxes, just because you think you could get something a bit cheaper in a few months.

The risks of trying to outsmart the market

Right now, we are seeing a variety of property price predictions.

But past events have shown that forecasts can be inaccurate, sometimes wildly so.

In the early days of COVID, for instance, some tipsters suggested property values could drop by 10%, or even 20%.

In reality, home prices rose 24.6% within two years of the start of the pandemic.

Clearly, the situation is very different today.

But the basic rule still holds – we usually only know that home prices have reached a low point after the event.

The thing is, several of the main factors that have helped drive home prices higher in recent times are still in play today.

Australia still faces a shortage of homes for people to live in. And our population continues to grow.

The upshot is that holding out with the aim of buying when prices are at their lowest may sound like a sensible strategy.

But it’s a lot easier said than done, and it often relies more on good luck than good timing.

Focus on what you can control

The past five years have seen home prices nationally increase by more than 34%.

Those sorts of long term gains could eclipse the short term savings of today’s softer market.

So, instead of trying to second guess the market, it can be worth focusing on what you can control – and that’s your own home buying plans.

As mentioned, today’s market offers improved choice, and sellers who may be more open to negotiating on price.

Both are a plus for home buyers.

Talk to us today. You could be home loan-ready right now, and that could see you benefit from today’s more buyer-friendly market.

Paramount Finance Australia 7/23/26 Paramount Finance Australia 7/23/26

Great news for buyers: property listings spike, FOMO dials down

Things are looking up for homebuyers. New listings are on the rise, and that can mean more choice and less FOMO pressure for buyers. Here’s how the shift in today’s market could benefit your homebuying plans.

It wasn’t so long ago that FOMO (‘fear of missing out’) was a driving force in Australia’s housing market.

Property listings were at multi-year lows, prices were rising rapidly, and a report by Finder revealed almost two-in-five first homebuyers had purchased a property based on concerns they’d be priced out of the market.

Today, the FOMO factor has largely faded away. And that’s a plus for homebuyers.

We look at how the market has shifted, and why today’s homebuyers could be well-placed to take advantage of opportunities we haven’t seen for some time.

More homes listed for sale

As recently as early 2026, homebuyers faced a tight supply of properties listed for sale.

In January, for example, the number of homes advertised for sale was 25% below the 5-year average.

The dial has shifted dramatically though, with new listings up 13.3% nationally in June 2026 compared to 12 months ago.

This likely reflects property owners looking to cash in on the significant price gains of recent years, according to realestate.com.au.

Whatever the cause, it seems buyers now have more properties to choose from, and that may well increase your chances of finding a home that ticks all your boxes.

Fewer properties being sold at auction

Auction clearance rates have fallen to the lowest level since 2020.

With fewer homes being sold at auction, we’re seeing a growing preference for private treaty sales.

The beauty of private treaty sales is that they can give buyers more scope to negotiate directly with the seller.

A tip: having your home loan pre-approved can potentially give you extra leverage to negotiate on price.

Talk to us about pre-approval – it can let sellers know you’re a serious buyer.

Buyers face less competition

Earlier in 2026, investors accounted for two-in-five new mortgages.

However, tax changes announced in the Federal budget are set to reduce this.

Westpac expects the tax reforms to drive a “sharp and sustained pull-back” in investor demand.

That’s a plus for homebuyers who are likely to face less competition from investors, which could further strengthen their negotiating clout with sellers.

Buyers are scoring bigger discounts

In more good news for homebuyers, sellers are increasingly open to discounting.

And who doesn’t love a discount, especially on a purchase worth several hundreds of thousands of dollars?

Across the nation’s capitals, the median discount on sale has climbed to 3.6%, up from 3.0% in March.

Regional homebuyers are looking at a median discount of about 3.5%.

These discounts may look small, but they can add up quickly.

On the median home value of $903,000 nationally, a 3.6% discount could see buyers save more than $32,000.

‍Farewell FOMO, hello buyer opportunities

Buying a home is one of the biggest decisions many of us will ever make, and it definitely shouldn’t be based on FOMO.

Buying based on a sense of urgency can mean compromising on your choice of home or stretching your buying budget.

With many of the drivers of FOMO easing, today’s homebuyers may have more time to research the market and greater scope to negotiate on price.

Even so, there’s no room for complacency.

Well-priced homes in good locations have a habit of attracting plenty of buyers, and holding out waiting for the market to fall could lead to disappointment.

Talk to us to see how you could benefit from a market that – for now at least – seems to be working in many buyers’ favour.

Paramount Finance Australia 7/16/26 Paramount Finance Australia 7/16/26

Lenders cut rates as competition heats up

The Reserve Bank may have kept rates on hold in June, but a growing number of lenders have cut their home loan interest rates. This could be your sign to review your current loan.

The Reserve Bank may have kept rates on hold in June, but a growing number of lenders have cut their home loan interest rates. This could be your sign to review your current loan.

Here’s news that should be music to the ears of Australian home owners.

Despite the Reserve Bank of Australia (RBA) keeping the cash rate steady in June, almost a dozen lenders have cut their variable home loan rates in recent weeks.

As a result, there are now 40 lenders offering at least one variable rate under 6%, Canstar reports.

But there’s a catch: these lower rates are usually only available to new borrowers.

That means now might be the time to get in touch with us, because you too could become a ‘new’ customer by switching to a different lender.

Here’s a closer look at what’s going on.

Why are lenders slicing their rates?

Competition in the home loan market is intense right now.

Over 100 providers – from the big banks through to mid-tier and regional banks, as well as dozens of non-bank lenders – are all competing for your business.

And competition has especially heated up following proposed tax changes in the federal budget that have impacted investor demand.

In today’s highly contested market, one way to attract new customers is by offering a competitive mortgage rate.

The upshot is that rate savings may be up for grabs for home owners who refinance with a new lender.

No sign of an official rate cut any time soon

Borrowers who wait for the RBA to start cutting interest rates could be left disappointed.

Several major banks, including ANZ and CommBank, believe it could be some time before we see the official cash rate fall, potentially well into next year.

In fact, Westpac is forecasting a rate hike in September, potentially as early as August.

Refinancers may be rewarded with valuable interest savings

The RBA may have hit ‘pause’ on rates, but that doesn’t mean you should too.

As more lenders lower rates for new customers, home owners who stick with their old loan may be left paying an uncompetitive rate.

And that could mean paying more in interest than necessary.

By way of example, Canstar found a home owner who’s had the same loan for the past five years is likely to be paying a rate of 6.98%.

Assuming that same borrower owed $600,000 on their mortgage, with 25 years remaining on the loan term, switching to an interest rate under 6% could save at least $10,713 in interest over the next two years.

And that’s after allowing for possible refinancing costs.

Talk to us to know how your loan rate shapes up

Stop guessing, and start knowing for sure whether you are paying a competitive loan rate.

Give us a call to organise a home loan review. We can compare dozens of loan options and explain if refinancing could see you save on your mortgage interest.

Paramount Finance Australia 7/9/26 Paramount Finance Australia 7/9/26

Bank of Mum and Dad: why a written agreement can make sense

With more first home buyers relying on family support to get into the market, we explain why it may be beneficial to put the details in writing if Mum and Dad offer a financial helping hand.

With more first home buyers relying on family support to get into the market, we explain why it may be beneficial to put the details in writing if Mum and Dad offer a financial helping hand.

Higher home prices are seeing more first homebuyers turn to family members for help buying a place of their own.

That support can come in a variety of forms, including living at home rent-free to help grow a deposit, or having parents act as guarantor for a first home loan.

But it can also go one step further.

An estimated 60% of first homebuyers have dipped into the ‘Bank of Mum and Dad’ – receiving financial assistance from parents – to get started in the market.

The amounts handed over aren’t small, averaging more than $30,000 according to one study.

With that sort of money changing hands, it can be worth having a written agreement in place.

As many as 64% of first homebuyers who rely on the support of parents have no paperwork at all for the arrangement, which can make things complicated with lenders.

Let’s take a look at why it’s worth considering putting the details in writing.

The Bank of Mum and Dad can help fast-track homebuying plans

In general, parents provide funds to their first-home-buying children as a loan, a gift or an early inheritance.

For first homebuyers, this injection of cash can cut the time taken to save a deposit, or push a deposit up to 20% – the amount usually required to avoid lenders mortgage insurance if you’re not relying on any federal government or lender schemes.

A bigger deposit may also have the upside of giving buyers access to lower interest rates.

How do lenders treat funding from Mum and Dad?

If you’re expecting Mum and Dad – or other close relatives – to offer cash towards buying a first home, it’s likely your lender will ask whether the money is a gift or a loan.

This distinction matters because if the money is a loan, the bank may take the repayments to parents into account when considering your ability to service a home loan.

This could even impact your borrowing power.

That said, research shows nearly half (49%) of parents who provide financial assistance to their children do not expect to be repaid.

More than a quarter (26%) offer the money as a gift.

Even so, having these details set out in writing before applying for a home loan can answer a lender’s questions about funding sourced from Mum and Dad, and help prevent delays in your loan application.

A new reason to have a written agreement

New anti-money laundering laws in place from 1 July 2026 mean that real estate agents are now required to verify the identity of home buyers, and in some cases, ask about where the funds used to buy a home came from.

Here too, it can be handy to have a written document that describes the nature of support from parents.

What documentation is required?

It depends on the type of arrangement.

If the money is a gift, a statutory declaration signed by your local Justice of the Peace (JP) confirming there’s no repayment expected is usually enough.

For anything more, such as the money being a loan or your parents acting as guarantor, you’ll want to seek legal advice from your solicitor.

A few tips for first homebuyers to bear in mind

The financial assistance of family members can give first homebuyers a valuable leg-up with a deposit.

But your deposit is just one part of the picture.

Lenders usually want to see that you’ve been regularly setting money aside in savings – usually for at least three to six months.

This evidence of ‘genuine savings’ shows you have the discipline to manage a home loan.

Also, your personal income still does a lot of the heavy lifting in determining if you’re eligible for a home loan.

After all, family members may provide a generous helping hand to get you started, but you need to be able to live comfortably with your loan over the long term.

Talk to us if you’re thinking of using the Bank of Mum and Dad to buy your first home. We can let you know what lenders like to see when applying for a home loan, and guide you through the rest of the process.

Paramount Finance Australia 7/2/26 Paramount Finance Australia 7/2/26

New financial year, new reasons to review your home loan

As the calendar flips over to July, now’s a good time to give your home loan a once-over. We look at five strategies that could help you save on interest and pay off your mortgage sooner.

As the calendar flips over to July, now’s a good time to give your home loan a once-over. We look at five strategies that could help you save on interest and pay off your mortgage sooner.

With three rate hikes already this year, and a big variation in rates between lenders, it’s worth checking you’re not paying too much interest on your mortgage this new financial year.

The hard part can be knowing how or what to weigh up. Here are 5 things to consider.

1. Review your loan rate

Not sure about the rate you’re paying? You’re not alone.

Over one-in-two home loan borrowers are in the dark about their mortgage rate.

Not knowing this number can be an expensive oversight.

So, grab a copy of your latest loan statement or jump onto your banking app. You’ll usually find your current rate under your account details.

As a guide to how your rate shapes up, the average variable rate now is about 6.45%.

The thing is, there are still some lenders offering home loan rates that start with a ‘5’ or a low ‘6’.

If you’re not happy with the interest rate you’re paying, call us to find out how much you could save by refinancing.

2. Check your loan has the features you need

Loans can come with a variety of features that may help you save on interest, and pay down your mortgage sooner.

However, having access to these features may mean paying a slightly higher interest rate.

If you’re not making use of them all, switching to a lower rate ‘basic’ loan could see you save.

3. Add up the fees you’re paying

While it’s natural to focus on your interest rate, it’s also worth keeping an eye on home loan fees. They can really add up over time.

Around 14% of loans still charge monthly fees, and where they apply, these fees can be as much as $15 a month.

Talk to us if you’re being slugged with a monthly fee. It’s an additional cost you may be able to avoid by moving to a different loan.

4. How does your loan shape up for flexibility?

Home loan flexibility is all about how well your mortgage can adapt to changes in your circumstances or lifestyle.

This can include being able to make extra repayments, and enjoying fee-free redraw if you need to draw the money back out for unexpected bills.

Is your loan flexible enough to be split between a variable rate (to benefit from any rate falls) and a fixed rate (for repayment certainty)?

Or, is your loan portable? This may give you the flexibility to transfer your mortgage from your old home to a new place if you move, letting you avoid the cost of setting up a new loan.

5. Is your lender still showing you love?

Great service doesn’t just mean a quick call to check that everything is going smoothly with your home loan.

It’s also about rewarding your loyalty as a home loan customer. And that doesn’t always happen.

According to Canstar, an owner-occupier who took out a loan five years ago and hasn’t renegotiated since, is likely to be paying a rate of 6.98%.

Yet many lenders are offering variable rates below or just about 6.0%.

Despite the potential for savings, more than half (52%) of Austrslian home loan borrowers have never changed lenders.

If that sounds like you, call us to see if you’re paying a home loan loyalty tax simply by sticking with the same lender.

Head into the new financial year confident about your home loan

A home loan review shouldn’t take too much time out of your schedule.

Paramount Finance Australia 6/25/26 Paramount Finance Australia 6/25/26

How the property market is shaping up in your area post budget night

It’s just over a month since the Federal Government unveiled its tax reforms on budget night. Here’s how property values are responding across the major cities.

It’s just over a month since the Federal Government unveiled its tax reforms on budget night. Here’s how property values are responding across the major cities.

The proposed changes to negative gearing and capital gains tax came as a big shock for property investors around the country – both current and prospective.

Despite the understandable concern and frustration that followed, more than a month after the budget night announcement, home values remain fairly steady – with the recent pause in interest rate hikes offering some relief.

In fact, four state/territory capitals recorded price gains in May.

But what we are seeing is some markets where price growth is slowing, and sellers may be more willing to negotiate. That’s potentially good news for home buyers.

With this in mind, let’s see how the market is faring in your neck of the woods.

No sign (yet) of a major downturn across multiple markets

The latest data from PropTrack shows how markets moved in May, which covers the immediate post-budget period (the budget was handed down on 12 May).

Home values in both Sydney (median value of $1.238 million) and Melbourne ($846,000) dipped by 0.2% for the month.

Values in Perth (median $1.024 million) cooled by 0.1%, while Canberra ($869,000) saw values dip 0.4%, the largest drop across the major cities.

However, plenty of state capitals saw values continue to climb.

Adelaide (median $950,000) and Darwin ($622,000) topped the leaderboard of gains, with both cities seeing a 0.3% rise in home prices for the month.

Home values rose 0.2% in Hobart (median $735,000). Further north, in the Olympic city of Brisbane (median $1.08 million), prices climbed 0.1%.

Regional markets outshone the big cities, with home values up 0.2% in May. Regional South Australia (up 0.7%) and regional Tassie (up 0.5%) notched up stronger gains.

Price growth is cooling off the back of strong gains

It’s clear that, as PropTrack puts it, any price falls have been “modest”.

And they follow an extended period of exceptional growth – 7.5% nationally over the past year, and 37.7% over the last five years.

So it’s important to put the current market conditions in perspective.

Why serious price falls are unlikely

Research group Cotality is not expecting a “sharp” correction. And there are several reasons why they believe significant price falls are unlikely:

1. Home buyers, not investors, make up the majority of buyers

Some investors may, quite sensibly, have been waiting to see how the proposed budget tax reforms would pan out before they became law (it turns out they’ll pass the Senate with support from the Greens).

However, it’s worth remembering that home buyers outnumber investors, and owner occupiers are not impacted by the proposed tax reforms.

2. Our population is growing

Australia’s population grew by 1.5% last year.

That means an additional 412,500 people, who all need somewhere to live.

This population growth will continue to drive demand for homes.

3. Australia faces a serious shortage of homes

We simply aren’t building enough homes to meet demand.

The Housing Industry Association (HIA) estimates that in 2025 Australia needed to build more than 250,000 homes just to keep pace with demand.

Instead, construction started on just 196,000 homes.

The shortfall in new homes isn’t a quick-fix issue.

The HIA believes demand for homes is likely to exceed supply until at least 2030.

Opportunity for home buyers

Despite these factors, there is some softening occurring.

Cotality says today’s conditions are starting to favour buyers in some markets.

This could be your opportunity to buy in a more relaxed market.

Talk to us to calculate your borrowing power and for help finding a home loan that helps you achieve your property goals.

Paramount Finance Australia 6/18/26 Paramount Finance Australia 6/18/26

Record smashed: over 80% of buyers turn to a broker for help

The mortgage broking industry has notched up an exciting record with the news that brokers now account for 81% of Australia’s residential lending market. Here’s why.

The mortgage broking industry has notched up an exciting record with the news that brokers now account for 81% of Australia’s residential lending market. Here’s why.

For some time now, mortgage brokers have been tantalisingly close to clearing the 80% market share benchmark, and we’ve finally smashed our own previous record.

We’re thrilled to announce that brokers facilitated a record high of 81% of new home loans in the first quarter of 2026.

That’s up from 77% last year, and a big leap from 55% back in 2018.

Those are the findings of the industry body, the Mortgage and Finance Association of Australia, which says brokers settled $124.88 billion in new home loans in the first quarter of 2026 – the highest volume recorded for any January to March quarter.

It’s quite a milestone, and the benefits all flow your way.

Let’s take a look at why more Australians are turning to a broker for help understanding lending options, comparing products and landing a loan that can turn property goals into reality.

What do mortgage brokers do?

Taking out a home loan is a serious step, and you want to be confident of getting it right.

With over 130 home loan lenders to select from, it’s easy to assume home buyers are spoilt for choice.

The catch is that it takes would-be buyers time – and lots of it – to compare just a fraction of the loans available.

That’s where brokers come in.

Our job is to help you navigate the complexity, and assist you in finding a mortgage that meets your needs.

We start by explaining your borrowing power, letting you know if you’re eligible for any first home buyer support schemes, giving you access to a huge range of lenders, and then doing all the legwork comparing rates and features to short-list a suitable selection of home loans for you.

Then we help you complete the loan paperwork, and we liaise with your chosen lender all the way through to settlement.

All-in-all, this gives you a great combination of confidence and convenience when it comes to organising your home loan.

Why do over 8-in-10 borrowers choose a mortgage broker?

The continued growth of brokers’ market share comes at a time when borrowers are facing housing affordability challenges, cost of living pressures and changing interest rate expectations.

That’s a lot to manage on your own.

Add in more complex lending decisions, and it’s easy to see why more Australians than ever before are turning to a mortgage broker.

Be rewarded with customer satisfaction

Brokers don’t just help streamline the home loan process. We can also make it more rewarding.

Research by Deloitte has found broker customers tend to be more satisfied with their experience than direct-to-lender customers.

One-third of broker customers rated their experience of using a broker a 9- or 10-out-of-10 (with 10 ‘exceeding expectations’), compared to only 20% of direct-to-lender customers.

And, as brokers are required by law to act in your best interests, you can be sure we will only recommend loans and lenders that suit your circumstances.

Put us to the test

No matter whether you’re a first home buyer, upgrader, investor, or you just want to know if you could benefit by refinancing to a new loan, we’re here to help.

Call us today to discover why more Australians are choosing to partner with a broker.

Paramount Finance Australia 6/11/26 Paramount Finance Australia 6/11/26

5 tips to help you clear your mortgage by retirement

Worried you’ll still be paying off your mortgage in retirement? New research shows you’re not alone. Here are five tips to help clear the slate before you hang up your work boots.

Worried you’ll still be paying off your mortgage in retirement? New research shows you’re not alone. Here are five tips to help clear the slate before you hang up your work boots.

A new trend is emerging that could leave retired home owners with less money to spend than they expected.

A recent study found at least one-in-three Gen X homeowners expect to be paying off a home loan in retirement.

Gen Xers aren’t alone.

Separate research shows one-in-three Millennials and one-in-four Baby Boomers expect to carry mortgage debt into retirement.

Why does this matter? And is it possible to pay off a mortgage by the time retirement rolls around?

Let’s take a closer look.

Why more Australians have a home loan in retirement

There are several reasons why a growing number of Aussies are retiring with a mortgage.

We are tending to buy a first home later in life.

And homebuyers are borrowing more due to rising house prices.

This has seen the 30 year loan term become pretty standard, up from 25 years in the past.

The upshot is that buying a first home at say, age 35 could mean still paying down a mortgage at age 65, which is close to the average age of retirement.

Below are five simple steps that could help you clear the home loan slate and free up some extra cash for your golden years.

1. Partner with a broker

As mortgage brokers, we’re committed to long-term relationships with our customers.

Our annual home loan reviews play a critical role, ensuring you continue to have the loan that matches your needs throughout your home ownership journey.

This is a key starting point to getting on top of your mortgage balance over time.

2. Don’t see your home loan as a ‘one and done’ product

From your first home loan to your last repayment, life is sure to change.

The loan that was right for you as a first home buyer may not be such a good fit as you progress through life stages.

That makes it worth talking to us regularly to know if you are still getting value from your loan.

Refinancing to a new loan and lender can ensure you enjoy a competitive loan rate, which can help you pay the balance off sooner.

3. Aim to consistently pay a little extra where possible

Consistently paying a little extra off your home loan can reduce your balance, lower future interest charges and fast-track the time taken to pay down your loan.

Even small extra payments made consistently can shave years off your mortgage.

Talk to us to know how much you could save with extra repayments.

4. Consider a home loan offset

An offset account is an everyday account linked to your home loan.

The balance of the account is deducted from your mortgage when it comes to calculating your loan interest payments.

For instance, if you have a mortgage of $500,000 and a balance of $50,000 in the linked offset account, loan interest will be charged on $450,000.

In this way, an offset account can help to lower interest costs over time.

It can make an offset home loan a smart way to put savings to work by paying off your mortgage sooner, while still having spare cash available at-call.

5. Switch up your repayment frequency

The timing of your home loan repayments can make a difference.

Rather than making one monthly payment, it can help to make smaller payments more frequently – either fortnightly or even weekly.

This sees daily loan interest calculated on a lower amount, which can see more of each repayment whittle away at the loan balance.

Paying more frequently can also help you make extra repayments.

For example, when you pay half your monthly repayment every two weeks, you can end up making the equivalent of an extra month’s repayment each year.

Call us to know how much you could save with this strategy.

Talk to us to know more

Whether you’re years or decades away from booking in an over-60s cruise or doing the “big lap”, contact us today for more insights on how you can clear the home loan slate before you hang up your work boots.

Paramount Finance Australia 6/4/26 Paramount Finance Australia 6/4/26

Not a housing “crash” – easing growth and plenty of buying opportunities

House price growth is slowing but experts say not to expect a crash. We look at what’s changed, and why today’s market may offer good opportunities for homebuyers.

House price growth is slowing but experts say not to expect a crash. We look at what’s changed, and why today’s market may offer good opportunities for homebuyers.

Recent home price data from Cotality may be just what homebuyers have been waiting for.

The latest figures show zero (0%) increase in home prices nationally in May – quite a change from the past 12 months when the trend has largely been upwards.

But the national picture doesn’t tell the full story, and the numbers certainly don’t indicate a market “crash”.

Property values fell in Sydney (down 0.9%) and Melbourne (0.8%), with a barely perceptible price dip of 0.2% in the ACT for May.

Meanwhile home prices continued to grow in the other state/territory capitals and across regional markets.

Yet there are signs the tide could be turning in buyers’ favour.

Why is home price growth slowing?

The property market varies significantly across cities right now, in what Cotality describes as “multi-speed conditions“.

That said, market momentum is slowing – the result of higher interest rates, the cost of living squeeze, which is impacting consumer sentiment, and the Federal Budget’s proposed tax reforms aimed at creating a more “level playing field” between first homebuyers and investors.

While home prices seem to be slowing, AMP chief economist Dr Shane Oliver says “any forecasts for a property price crash are likely to be wide of the mark”.

“A crash would require wide-scale forced selling by homeowners – but without much higher unemployment forcing homeowners to sell this is unlikely as Australians will do whatever they can to keep servicing their mortgage,” Dr Oliver explains.

Is the property ‘super-cycle’ over?

You may have seen media reports questioning whether the so-called ‘property super-cycle’ has come to an end.

This super-cycle refers to the strong period of home price growth seen over the last 30 years.

But not everyone agrees that the current softer conditions are a sign that the market is heading south.

The Commonwealth Bank is still expecting property price growth both this year and next.

REA Group (which owns realestate.com.au) suggests only slightly lower home prices – largely as a result of the tax changes for investors.

Cotality points to the shortfall in housing supply, ongoing population growth, and continuing strength in the job market as reasons why we’re unlikely to see a sharp correction.

Opportunities for homebuyers

The good news is that there are plenty of buying opportunities right now, and they’re up for grabs no matter whether you’re an upgrader or first home buyer,

In Sydney and Melbourne, the advertised supply of homes for sale has risen to above-average levels, providing more choice and better negotiating power for buyers.

Auction clearance rates are down, and that’s seeing sellers increasingly open to pre-auction offers.

On top of all this, the expanded 5% Deposit Scheme is giving first home buyers a real chance to get into the market with a smaller deposit.

With all these shifts in favour of buyers, call us to today to discover the opportunities that may be open to you.

Paramount Finance Australia 5/28/26 Paramount Finance Australia 5/28/26

Gen Z races into the property market

A few tweaks to a popular first home buyer scheme has driven a “surge” in Gen Zs buying their first home. And it’s not the only upside giving first home buyers a boost now.

A few tweaks to a popular first home buyer scheme has driven a “surge” in Gen Zs buying their first home. And it’s not the only upside giving first home buyers a boost now.

The expansion of the popular 5% Deposit Scheme, combined with recent changes to rules for property investors, may be opening doors for young home buyers.

The scheme, which lets first home buyers get started with as little as 5% deposit, or 2% for single parents, is now open to all first home buyers – with unlimited places, higher property price caps, and no income limits.

These tweaks have made a huge difference, especially for Gen Z buyers aged 18-25.

Let’s take a closer look at what’s happening.

Gen Z demand jumps 22.8%

Last October saw several changes made to the 5% Deposit Scheme.

Annual place numbers were scrapped, income caps were waived, and the upper limit on property prices was lifted to reflect rising values.

As a result, first home buyer demand has increased by a whopping 16.4%, says credit reporting agency Equifax.

Gen Z is leading the charge, with home loan demand among 18-25-year-olds rising 22.8% since October – the highest of any age group.

That matters because, as Equifax points out, Gen Z has historically found it especially difficult to pull together a 20% deposit.

Older first home buyers aren’t far behind though.

Home loan demand among buyers aged 26-35 is up 17.4%, with demand across first-time buyers aged 35-44 rising 16% since October.

How does the 5% Deposit Scheme work?

The 5% Deposit Scheme aims to help first home buyers get into the property market with as little as a 5% deposit. Solo parents may be able to buy with just a 2% deposit.

Buying with a smaller deposit can take years off your saving timeline.

But the potential benefits don’t stop there.

The 5% Deposit Scheme also sees the federal government guarantee your first home loan, so there is no need to pay lenders mortgage insurance.

This reduces upfront buying costs, leaving more money to put towards your first home.

If you’re keen to buy with a 5% deposit, it’s important to talk to us.

Not all lenders have signed up to the 5% Deposit Scheme, but from those that have, you can rely on us to help you find a home loan that matches your needs.

More good news for first home buyers

The expanded 5% Deposit Scheme isn’t the only thing working in favour of first home buyers right now.

This year’s federal budget introduced reforms designed to shift the scales in favour of first home buyers, says the government.

The budget changes to negative gearing and capital gains tax were introduced with the goal of levelling the playing field between first home buyers and investors.

It’s expected to reduce buyer competition in the more affordable end of the market typically favoured by first home buyers.

In turn, less competition could potentially impact property prices.

The Commonwealth Bank is predicting the federal budget reforms will see home prices rise 3% this year, down from previous forecasts of 5%, followed by price growth of 3% in 2027.

Time to get the ball rolling on your first home

With so many factors potentially working in first home buyers’ favour, it’s worth considering if you are home loan ready right now.

Call us to know for sure, and get the ball rolling on buying your first home.

Paramount Finance Australia 5/21/26 Paramount Finance Australia 5/21/26

Home loan interest rate rising? There may be other options

It was great while it lasted, but the rate cut party is well and truly over. Today we look at how you could potentially reduce your home loan interest rate without relying on the Reserve Bank.

It was great while it lasted, but the rate cut party is well and truly over. Today we look at how you could potentially reduce your home loan interest rate without relying on the Reserve Bank.

A string of rate hikes this year has pushed the cash rate back up to 4.35% – exactly where it was at the start of 2025. Except this time, there are no rate cuts on the horizon.

These rising interest rates are squeezing many household budgets.

But you don’t have to just resign yourself to another round of belt-tightening.

Switching to a new lender could help you save on home loan interest, lower your regular repayments and take the pressure off your finances.

Let’s dive in and find out more.

Are you paying more than necessary?

The good news first.

Australia has a very competitive home loan market.

There are over 130 different home loan lenders to choose from – from the major banks, smaller banks and credit unions through to online-only lenders and specialist lenders.

It gives home owners looking for a competitive rate a decent chance of finding an offer that suits.

The bad news is that so much choice can be overwhelming.

It may simply seem easier to stick with the familiarity of a well-known brand.

This goes a long way to explaining why more than seven out of ten Aussie home owners have their mortgage with one of Australia’s big four banks.

Yet without the cost of a big branch network to maintain, many of the other 126 or so lenders can afford to offer sharp home loan rates – without scrimping on loan features.

How much could you save by refinancing?

Switching to a new loan with a more competitive rate has the potential to lower your repayments by hundreds of dollars each month.

As a guide, MoneySmart says there can be a difference of more than 2% in variable home loan rates on the market.

On the average home loan of $735,000, a 2% rate saving could cut $14,700 off mortgage interest in the first year of refinancing alone.

Of course, not every refinancer will pocket a rate cut of 2%, and there can be costs associated with switching.

That’s why we always weigh up savings versus costs to be sure refinancing makes sense for you.

Who’s got time to shop around? We do

Okay, so you can choose from more than 100 different lenders.

That’s great. But who has time to compare a large volume of loans?

That’s where we come in.

Our job is to sort through our extensive panel of lenders to identify the home loans that match your needs.

From there, we’ll work out which loans could help you save on interest (or match another criteria you’re seeking, such as multiple offset accounts).

Once you’ve selected your preferred loan and lender, we’ll guide you through each step of the transition – and we’ll have your back in the years to come, too.

Paramount Finance Australia 5/14/26 Paramount Finance Australia 5/14/26

Federal Budget 2026: how it could affect your property plans

Reforms to negative gearing and capital gains tax have been unveiled in the latest national budget. Here’s what they could mean for investors, first home buyers and home owners.

Reforms to negative gearing and capital gains tax have been unveiled in the latest national budget. Here’s what they could mean for investors, first home buyers and home owners.

The Albanese Government has tabled its budget for 2026-27, and tax reforms for property investors are top of the agenda.

Treasurer Jim Chalmers says these reforms are all about getting more Australians into a first home of their own. But, as with any federal budget, there are winners and losers.

We break down the key aspects of the budget to see how it could affect your property plans.

Negative gearing – limited to newly built homes

Negative gearing has long appealed to many property investors.

It allows investors to offset ongoing property expenses (such as home loan interest and rates) against income (such as rental income and wages). In this way, negative gearing can make owning a rental property tax-friendly, potentially giving investors greater tax advantages than home owners.

But in what the Labor Government describes as a move to “level the playing field”, from 1 July 2027, negative gearing will be restricted to newly built homes.

Investors who buy established homes after 12 May 2026 (budget night) won’t be able to use negative gearing to offset property expenses against other income.

For investors who already own a rental property, negative gearing can continue to be used as normal.

Capital gains tax – back to indexing

The budget also made capital gains tax (CGT) concession changes that will impact sellers.

At present, investors can claim a 50% CGT discount on profits made via property sales, as long as they have owned the place for at least 12 months.

This will change from 1 July 2027. The 50% discount will be scrapped and replaced with a discount based on inflation – a system that was in place pre-1999.

The change will be prospective, meaning gains accrued on existing investments prior to the start date will retain the 50% discount.

In addition, a minimum tax rate of 30% will apply to capital gains on investment property sales. This is meant to align the tax paid on capital gains with the average tax rate paid by workers.

Investors who opt for newly built properties will be able to choose between the 50% CGT discount, or index gains for inflation, with a 30% minimum tax.

Now, let’s break it all down to see what the changes could mean depending on your type of property ownership.

First home buyer

Cotality points out that investor numbers have been rising across the more affordable end of the property market. This has meant increased competition for first home buyers.

By reducing the CGT discount and scrapping negative gearing on purchases of established properties, the government is hoping to take some of the heat out of the investor market. It estimates this may help 75,000 Australians buy a first home.

The government has also committed $2 billion to the infrastructure needed to build new homes. This is expected to see an extra 65,000 homes constructed over the next decade.

Long story short, the government is hoping that first home buyers will benefit from the latest budget reforms. If you’re ready to buy, call us to find out your current borrowing capacity.

Property investor

The latest reforms could see newly constructed homes become more popular among investors.

For some investors, new constructions have always held appeal. The maintenance costs may be lower, and the tax deductions for depreciation may be higher (this is something to speak to your tax adviser about).

Current home owner

While the budget doesn’t directly impact current home owners, Treasury estimates suggest a cooling of investor demand may see home prices grow by around 2% less over the next few years.

That could make now the ideal time to think about upgrading to your next home.

Home values nationally have risen 40.2% over the last five years, giving many home owners plenty of equity to climb the property ladder.

Call us to discuss your property plans

Major changes can bring uncertainty, especially when they involve tax reforms. If you’re an investor, it may be worth speaking with your tax professional.

Paramount Finance Australia 5/5/26 Paramount Finance Australia 5/5/26

Cash rate increases for the third time this year, now up to 4.35%

The hits just keep coming for mortgage holders, with the Reserve Bank of Australia (RBA) today raising the cash rate for a third time this year to 4.35%. If you’re starting to struggle with your mortgage repayments, here’s how you can potentially take action.

Today’s 0.25% cash rate increase brings us in line with the 2024 cash rate peak of 4.35% – which was the highest it had climbed to since December 2011.

The RBA’s Monetary Policy Board said in a state ment that the conflict in the Middle East had resulted in sharply higher fuel and related commodity prices, which were already adding to inflation.

“There are early signs that many firms experiencing cost pressures are looking to increase prices of their goods and services. Short-term measures of inflation expectations have also risen,” the Board said.

How could this affect your monthly mortgage repayments?

Unless you’re on a fixed-rate mortgage, your bank will likely soon follow the RBA’s lead and increase the interest rate on your variable home loan.

For an owner-occupier with a 25-year loan of $500,000 paying principal and interest, this month’s 25 basis point rate hike means your monthly repayments could increase by about $77 a month.

That equals about $924 a year. Or $2772 annually if you also include the other two rate hikes (yikes!).

If you have a $750,000 loan, your minimum monthly mortgage repayments may increase by about $115 a month. That’s $1380 per year, or $4140 including the previous two rises.

Meanwhile, a $1 million loan could go up by about $154 a month. That’s $1848 a year, and $5544 if you include the February and March hikes.

This all assumes that your lender automatically passes on the full 25 basis point increase to your home loan.

The only (potentially) relieving thing to note from all this is that when interest rates came down from the recent cycle peak of 4.35%, many banks around the country kept borrowers on the same monthly repayment amount – meaning they paid more off the principal of their home loan each month rather than the interest.

If this is the case for you, your monthly repayment amount (likely) won’t increase with this latest rate hike – it’s just that more of your repayment (0.25%) will go towards the interest on your loan, rather than the principal.

To find out what your lender is doing with your loan, get in touch with us in a few days once the dust has settled and the banks have announced their next moves.

Need to discuss your home loan?

The RBA decision is another tough pill to swallow for mortgage holders on a variable rate. It hurts, but there are still some steps you could potentially take to help offset the rate hike.

If it’s been some time since your last home loan review, now might be a good time to check in.

There’s a chance you might be able to improve your situation by switching to a lender on a lower-rate home loan – potentially giving you a rate cut of your own.

Other options we could help you explore include renegotiating with your current lender, switching to interest-only for a short period of time, or debt consolidation.

Every household is unique, and we’re committed to helping you find a solution that fits your needs.

Paramount Finance Australia 4/30/26 Paramount Finance Australia 4/30/26

How to turn your new-build dreams into reality

There’s no better feeling than living in a brand new home – it’s fresh, clean and it’s all yours. But financing a new-build works very differently from buying an established home. Here’s what you need to know.

There’s a lot to love about home ownership, and it’s especially exciting when you’re building a place of your own from scratch.

You have the freedom to select your preferred design, personalise the finishes, and then watch as your new home steadily comes to life from the ground up.

And it turns out, more home buyers are choosing a newly built home.

The House Industry Association says that despite higher interest rates, home building activity picked up in the March 2026 quarter.

Amid the excitement of picking colours, carpets and appliances, however, it’s worth knowing how to fund the construction of your new home.

Financing a building project works very differently from buying an established home.

Here’s what’s involved.

Construction loans – tailor-made for building projects

When you borrow to buy an established home, your mortgage lender provides a lump sum to cover the purchase price of the property.

However, when you choose to build a new home, your lender is likely to suggest a ‘construction’ loan – a type of loan purpose-built for building projects.

Rather than receiving the full value of the loan in a single payment, a construction loan works by drip-feeding the funds to you (in reality, your builder) as various stages of construction are completed.

There are typically several payment stages – from laying the slab to final sign-off on completion, and they can differ slightly between lenders.

The cash flow benefits of a construction loan

The common thread of construction loans is that you normally only pay interest on the funds drawn down.

This can help to minimise the cost of the loan – and loan payments – while construction is underway.

This can also be a plus for your cash flow, especially if you’re renting or still paying off your current home whilst the new place is being built.

The other upside of a construction loan can be that your lender will usually check the work completed before signing off on each phase of completion. This may give you extra reassurance that the workmanship is up to scratch.

Then, when construction is fully completed, and your new home is ready to move into, your construction loan will typically become a standard mortgage, and you start making principal plus interest payments on a regular basis.

Is a new build right for you?

Along with the pleasure of living in a brand new home, there can be a cost saving to a newly built place.

Analysis by Compare the Market found it’s normal for the cost to buy to be more expensive than building.

Other costs such as stamp duty can also increase the cost of an established home.

Bear in mind though, building takes time, and construction doesn’t always go to schedule. It’s not a bad idea to budget for a few unexpected costs such as possible delays due to weather.

Talk to us about funding your new home

If you’re ready to build, we’re ready to help you find a construction loan that matches your needs.

Talk to us to get the ball rolling on a brand new home.

Paramount Finance Australia 4/23/26 Paramount Finance Australia 4/23/26

Could your home loan pre-approval be out of date?

Having loan pre-approval can be a smart move for home buyers. But the recent Reserve Bank cash rate hikes could leave your pre-approval in need of an update.

Having loan pre-approval can be a smart move for home buyers. But the recent Reserve Bank cash rate hikes could leave your pre-approval in need of an update.

There’s a lot to love about home loan pre-approval.

It shows how much a bank will let you borrow for a home – that’s your ‘borrowing power’.

Pre-approval also indicates you’re a serious buyer, providing extra bargaining clout in price negotiations.

And while pre-approval typically only lasts for three to six months, that can be sufficient time for many buyers to find their ideal home.

But there’s a catch.

Pre-approval is not a guarantee. Rather, it is a guide of what you can borrow based on circumstances at the time pre-approval was issued.

And the two rate cash rate hikes the Reserve Bank of Australia has implemented this year may have chipped away at your borrowing power.

That can make it worth reviewing your mortgage pre-approval.

Here’s what to weigh up.

Your borrowing power may have altered

Your borrowing power, also known as ‘borrowing capacity’, is a key factor when it comes to buying a home.

It’s the amount a bank is willing to lend for a home loan, and it’s based chiefly on your income and living expenses.

However, interest rates also play a role.

A rise in interest rates will mean higher repayments, and this has the potential to reduce your borrowing power.

As an example, Canstar says a solo home buyer on the average full-time wage ($106,950) will be able to borrow around $12,000 less as a result of the March 2026 rate rise.

Add in the 0.25% February rate hike, and that same home buyer could be looking at a $25,000 cut to their borrowing power.

A couple on the average wage may have seen their combined borrowing power drop by $49,000 since February.

That’s why it’s so important to call us to understand your true borrowing power as it currently stands.

Yes, there are online calculators available. But these may not consider every aspect of your personal situation.

The risk of outdated pre-approval

Taking a ‘she’ll be right’ approach to your loan pre-approval could work against you.

You may find, for example, that after negotiating a great price on a place you’re keen to buy, you struggle to get the home loan you need.

Worst case scenario: you risk being the winning bidder at auction but failing to get finance to complete the purchase – a situation that could mean losing your deposit.

Here too, a call to us can confirm if you are good to go for a home loan before you start putting money on the table for a property purchase.

How to boost your borrowing power

The good news is that there are steps you can take to potentially boost your borrowing power – no matter what interest rates are doing.

Here are a few ideas to get started.

Review household expenses – even a small change in non-essential spending can make a difference.

Lower the limit on your credit card – lenders often base your borrowing power on the assumption your credit card is maxed out. Think about asking your card issuer to trim your credit limit. Or close it altogether.

Clear other debts – a lingering car loan, the remains of student debt, and even an ongoing buy now, pay later balance can impact your borrowing power. Knuckling down to clear the slate could see you rewarded with increased borrowing capacity.

Know that rate matters – the rate you pay isn’t the sole decider of whether a loan is a good match for your needs. But the lower the rate, the more you may be able to borrow.

Talk to us for up-to-date loan pre-approval

Successful home buying doesn’t have to mean borrowing as much as you can.

However, it makes sense to start the ball rolling with a clear idea of your current borrowing power.

Talk to us to know if your loan pre-approval is out of date, or to organise new pre-approval on a loan that’s well-matched to your needs.

Paramount Finance Australia 4/16/26 Paramount Finance Australia 4/16/26

Why buyers are defying rate hikes and rising fuel prices

Rate hikes and soaring fuel prices aren’t dampening home buyer enthusiasm, with a strong majority of Aussies still believing the time to buy is now. We look at why home-buying sentiment remains so high.

Petrol prices have been stealing the headlines lately. But behind the scenes, Aussie homes have been notching up fresh gains.

Over the past year, home values rose 9.9% nationally – the fastest 12-month growth since June 2022.

And despite the current fuel crisis and two rate hikes in 2026, plenty of buyers are expecting values to climb higher.

A recent Westpac-Melbourne Institute survey found “a clear majority of consumers still expect (home) prices to rise” over the next year. Only around one in ten think values will fall.

These expectations of price growth could be behind Westpac’s finding that 83% of Australians think now is the time to buy.

The right time to buy a home

Buying a home is something most of us only do a few times in our life. It’s a very personal decision and a big commitment, so the ‘right’ time for you to buy is when you feel ready.

That’s why we encourage you to speak with us, so you can feel confident you are financially ready to become a home owner.

However, if you are holding out in the hope that prices will fall, you could be left disappointed, and potentially end up paying more in the future.

Home values nationally forecast to climb 2.8% this year

Yes, higher interest rates are likely to impact the property market.

ANZ, for example, expects price growth to slow.

But slower growth does not mean a price slump.

ANZ’s forecasts suggest capital city home prices will rise 2.8% in 2026, followed by 2.1% growth in 2027.

But big differences are anticipated across each capital – from dramatic price growth to modest softening, depending on location.

As a guide, prices are expected to rise a whopping 12.3% in Perth this year, 9.7% in Brisbane, and 8.0% in Darwin.

Values are also expected to track higher in Adelaide (up 5.75%), Hobart (3.7%) and Canberra (1.6%).

Sydney and Melbourne may see prices soften by -0.7% and -1.7%, respectively, this year.

But that’s far from a significant drop, and both cities are forecast to see prices rise by at least 2.6% in 2027.

What’s driving values higher?

The reason property prices could defy higher interest rates is simple: demand outweighs supply.

The number of homes listed for sale is super-tight right now.

New listings across most state capitals are lower than a year ago.

And while more new homes are being built, construction levels simply aren’t keeping pace with population growth, NAB says.

Buyers are seizing opportunities

A shortage of homes for sale isn’t deterring buyers.

Cotality estimates close to 560,000 homes have been sold so far in 2026. That’s almost 6% higher than the 5-year average.

Moreover, NAB reports that home loan lending “rose sharply” in the second half of 2025, with home buyers, rather than investors, being the driving force in the mortgage market in the final quarter of the year.

It goes to show that rate hikes and uncertainty in the Middle East are no match for home buyer enthusiasm.

According to realestate.com.au, some first home buyers and upgraders see slower price growth as a window of opportunity, with auction demand still “hot” in parts of the market that are popular with first home buyers.

Call us to know if it’s your time to buy

No one knows for sure how home prices will move in the future.

But it’s fair to say plenty of home buyers look back on the price they originally paid for their home, and breathe a sigh of relief that they purchased when they did.

That’s because over the long term, home prices generally rise, rather than fall.

Talk to us about a home loan that matches your needs if you believe now is your time to buy.

Paramount Finance Australia 4/9/26 Paramount Finance Australia 4/9/26

One-in-five investors snatch up interstate properties

Is the grass really greener on the other side? Maybe. Australia has seen a surge of investor activity in recent years, with investment loans reaching record highs. But as home prices rise, plenty of investors are looking beyond their own backyard and making interstate purchases.

Australian homes have delivered plenty of pluses for investors in recent years.

Vacancy rates are low and rents are rising across much of the country. Strong price growth has seen more than 93% of recent investor sales make a profit – the highest rate in a decade.

Not surprisingly, that’s seen a rush of investors keen to buy a rental place, which has pushed new investment loans to record highs.

But there’s a twist.

As many as one-in-five investors nationally are casting their gaze beyond their local neighbourhood and buying interstate, according to PropTrack’s latest Investor Report.

In some parts of the country – including the ACT, Tasmania and the top end – 40% or more of investors are buying interstate.

Is it a good idea? Here’s what to weigh up.

The ‘freedom’ of buying as an investor

When it comes to deciding where, and which type of property they’d like to buy, investors can enjoy plenty of freedom.

An investment property doesn’t need to be close to your work, family or friends. So in many ways, you’re free to buy where you choose.

And investing interstate can bring the advantage of diversity. You’re not exposed to the fortunes of just one property market.

Of course, it always makes sense to invest in an area with capital growth potential, healthy rents and plenty of tenant demand. But your local market may tick each of these boxes.

There is another factor that may see investors head interstate – and that’s affordability.

Investing interstate may be more affordable

Home values differ widely across Australia, and this can be a key driver behind the decision to invest interstate.

An investor who lives in Sydney, for example, where the median home price is over $1.295 million, may not be able to afford a locally-based rental property.

But their budget may extend to a more affordable market such as Hobart ($737,742), Melbourne ($828,249) or Adelaide ($937,021). Or the same investor may decide to buy in a regional area (national median $758,788).

The point is that buying interstate can simply be more affordable – and potentially healthy returns.

What to be aware of when investing interstate

Investing interstate can be a straightforward process though there are potential pitfalls to be aware of.

First, you may not have the same home-town knowledge of the area you’re buying in.

That makes plenty of research essential.

In addition, checking out homes listed for sale won’t be as easy as jumping in the car and popping out for a quick inspection.

The solution to both challenges can be using a buyer’s agent. This is a licensed professional, who can share their local market knowledge, track down properties that suit your goals and budget, and help with price negotiations.

A buyer’s agent will come at a cost though. You may be asked to pay a percentage of the property’s sale price or a flat fee. It’s an added upfront cost, though when you’re investing in an unfamiliar area, hiring a buyer’s agent could be money well spent.

Bear in mind, as an interstate investor, you’re likely going to need a property manager to handle the day-to-day renting of your property. This will also involve an additional cost, so be sure to do the sums to see how this could impact rent returns.

Applying for an investment loan for your interstate property

If you’re planning to invest interstate, the good news is that you aren’t restricted to lenders based in other states.

We can help you find an investment home loan that’s a great match for your needs no matter where the property is located.

It’s a good idea to talk to us at an early stage.

The process of applying for an investment loan works in much the same way as an owner-occupied loan. However, some lenders take potential rental income into account when deciding how much you can borrow. Others don’t.

The difference may seem minor but it can shape your buying budget.

Talk to us about your interstate investment

Call us about your plans to buy an interstate rental property.

We can explain your loan options, compare lenders, and explore different loan structures that can help you achieve your goals.

Paramount Finance Australia 4/2/26 Paramount Finance Australia 4/2/26

5% Deposit Scheme helps more than 300,000 Aussies buy a first home

Buying a first home doesn’t have to mean years of eating beans on toast while you scrape together a 20% deposit. Here’s how you could break into the property market with just a 5% deposit.

Buying a first home doesn’t have to mean years of eating beans on toast while you scrape together a 20% deposit. Here’s how you could break into the property market with just a 5% deposit.

The Australian government’s 5% Deposit Scheme has been around since 2020, and in that time it’s been a game-changer for more than 300,000 first home buyers.

That’s because the scheme offers a chance to buy a first home with a 5% deposit – or as little as 2% for single parents.

The scheme has also helped fund the construction of close to 30,000 new homes.

So, it’s no surprise that more than one-in-three first home buyers relied on the scheme to buy a place of their own in 2024-25.

If you’re unsure whether the 5% Deposit Scheme is the right pathway to home ownership for you, read on as we take a closer look at what’s involved.

How the 5% Deposit Scheme works

The scheme overcomes a key challenge for first home buyers – saving a 20% deposit at a time when property values in many areas are continuing to rise.

While plenty of lenders offer low deposit home loans, if you have a deposit below 20% you’ll typically be asked to pay lenders mortgage insurance (LMI) which can cost thousands of dollars.

That’s part of the beauty of the 5% Deposit Scheme – the federal government guarantees your home loan, meaning there’s no need to pay LMI.

There are also no waitlists, no income limits and no place limits.

You’re free to buy an established home or build a new place – as long the property falls within the price limits that apply in your area.

Long story short, if you meet eligibility criteria, and can chip in a minimum 5% deposit (or 2% if you’re a solo parent), the scheme could bring forward your savings timeline, and fast-track your journey to home ownership.

Mix and match with other first home buyer incentives

The 5% Deposit Scheme can be combined with other types of first home buyer assistance, no matter whether they are offered through federal, state or territory governments.

These incentives include the First Home Owner Grant (FHOG), which provides a one-off grant in most states and territories to first home buyers who buy or build a new home.

Stamp duty waivers or concessions may also be available to you. And the First Home Super Saver Scheme could let you grow a deposit using your super.

The possible downsides

The 5% Deposit Scheme may be a great help. But it still makes sense to talk to us.

A smaller deposit often means taking out a bigger loan. It can also mean it takes time to build a reasonable level of home equity, and this can make it harder to refinance to a different mortgage further down the track.

That’s why your choice of home loan is so important.

Call us to be sure you’re comfortable with the numbers, and for help finding a home loan that matches your needs.

Paramount Finance Australia 3/26/26 Paramount Finance Australia 3/26/26

Good news for buyers – surge in homes hitting the market

If you’re in the market for a home, you may have noticed there hasn’t always been a whole lot of choice in recent months. Fortunately, it looks like property listings are really starting to pick back up. Here’s how to make the most of the increase in choice.

Sure, price is the obvious big barrier when it comes buying your first home.

But that’s often got a whole lot to do with a lack of supply (less supply than demand typically = higher prices).

And in fact, Westpac says supply shortages have been one of the most significant hurdles for Aussies trying to enter the property market, with one in four (26%) first home buyers saying a lack of listed properties was holding them back.

But the tide may be starting to turn.

According to SQM Research, new listings “surged” 48.6% nationally in February, marking the strongest monthly rise since spring 2025.

And new listings continued to climb in the four weeks to mid-March.

Let’s take a look at why a rise in homes listed for sale is a plus for home buyers, and how it could impact your buying plans.

Where listings growth is strongest

According to Cotality, March has seen new listings climb by 10% or more (year-on-year) in Melbourne, Brisbane, Hobart and Canberra.

Sydney (up 4.1%) and Adelaide (4.8%) have seen more modest growth in new listings, though the overall trend is upwards.

Only Perth and Darwin are bucking the trend, with new listings down 12.8% and 12.3% respectively compared to a year ago.

How does an increase in listings benefit home buyers?

Across our capital cities, the four weeks to mid-March saw a For Sale sign pop up in front of an extra 27,772 homes.

An increase in new listings offers several upsides for home buyers.

More homes on the market means more choice, so you may not have to compromise on your wish list of home features.

In addition, increased supply has the potential to keep a lid on price growth.

However, that doesn’t necessarily mean values will fall.

Listings are still 9.1% lower year-on-year. So we’re still not in a ‘balanced’ market where supply equals demand.

In fact, delaying your buying plans in the hope that home prices will soften could work against you.

SQM Research crunched the numbers and found that even if the Reserve Bank hiked interest rates by a further 0.25% by mid-year, capital city home values could still end the year 3.0% higher. Home values in several cities including Perth, Brisbane, Darwin and Adelaide could rise by at least 10%.

Long story short, it’s worth thinking about how you could benefit from increased supply right now, rather than postponing your buying plans.

What you can do as a home buyer

There are several ways you may be able to take advantage of an increase in property listings.

First and foremost, understand your borrowing power. This may have changed as a result of the March rate hike.

Talk to us to know how much you can comfortably borrow. It can drive your buying budget.

Next, keep an eye on local sales results and selling times. Values may not fall, but if homes start taking longer to sell, you could have more leverage to negotiate a discount.

Finally – and possibly most importantly – talk to us about having your home loan pre-approved.

Westpac research shows two-in-five home buyers point to rivalry with other buyers as a barrier to getting into the market.

Having pre-approval in place could give you a competitive edge over less organised buyers.

So get in touch about securing pre-approval for a loan that suits your needs – it’s about making the most of a market that could be starting to swing in your favour.