Double trouble! RBA lifts cash rate by another 25 basis points to 4.10%
More bad news for mortgage holders around the country: the Reserve Bank of Australia (RBA) today raised the cash rate for the second time this year to 4.10% in a 5-4 split decision vote. How might this impact your monthly mortgage repayments?
More bad news for mortgage holders around the country: the Reserve Bank of Australia (RBA) today raised the cash rate for the second time this year to 4.10% in a 5-4 split decision vote. How might this impact your monthly mortgage repayments?
Hardly seems fair to hike the cash rate by another 0.25% with petrol prices so high right now (which one could argue will reduce discretionary spending) – but it wasn’t enough to sway the majority of the RBA board, unfortunately, which voted 5-4 to increase the cash rate.
Uncertainty surrounding stubborn inflation levels and global economic volatility due to the war in the Middle East had the RBA concerned enough to pull the trigger on a second consecutive rate rise in 2026.
The RBA’s Monetary Policy Board said in a statement that data since RBA’s February meeting suggests that some of the increase in inflation reflects greater capacity pressures.
“In addition, the conflict in the Middle East has resulted in sharply higher fuel prices, which, if sustained, will add to inflation,” the Board said.
“As a result, the Board judged that there is a material risk that inflation will remain above (the 2-3%) target for longer than previously anticipated.”
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 $1848, if you also include last month’s rate hike (yikes!).
If you have a $750,000 loan, your minimum monthly mortgage repayments will likely increase by about $115 a month. That’s $1380 per year, or $2760 if you include last month’s hike.
Meanwhile, a $1 million loan could increase by about $154 a month. That’s $1848 a year, and $3696 if you include the February hike.
This all assumes that your lender automatically passes on the full 25 basis point hike to your home loan.
Another thing to keep in mind is that when interest rates came down from the recent cycle peak of 4.35% throughout 2025, 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 (very 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?
Ok, so the RBA has raised the cash rate again. It’s a tough one, sure, but there are still some steps you could potentially take to help offset this rate hike.
If it’s been a while since your last home loan review, now could be a good time to check in. You might be able to improve your situation – and we’re here to help you explore your options.
This could include renegotiating with your current lender, refinancing to another lender, or debt consolidation.
Every household is unique, and we’re committed to helping you find a solution that fits your needs.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Offset accounts surge as homeowners race to beat higher rates
Who wouldn’t want to save on home loan interest and pay off their mortgage faster? Homeowners are increasingly turning to offset accounts to do just that. So today we’ll look into whether an offset account could benefit you.
Who wouldn’t want to save on home loan interest and pay off their mortgage faster? Homeowners are increasingly turning to offset accounts to do just that. So today we’ll look into whether an offset account could benefit you.
The recent RBA cash rate hike has led homeowners to embrace a variety of strategies to ease the rate pain, and it turns out one of the most popular options is a home loan offset account.
One of the big 4 banks, NAB, says it is seeing “offset accounts surge” as homeowners, especially younger borrowers, look for low‑effort ways to beat rising rates.
According to NAB, three-quarters of its home loan customers now use an offset account.
While homeowners aged 40 to 60 remain the biggest users of offset accounts, NAB says that among customers aged under 35, the number of offset accounts linked to new home loans has nearly doubled compared to last year.
Let’s dive in to understand the appeal of offsets, the potential savings to be made, and who home loan offset accounts may be suited to.
How an offset account can save on loan interest
A bit of background first.
An offset account is an everyday account linked to your home loan.
You don’t earn interest on money in the offset account. Instead, you save by paying less interest on your home loan.
That’s because the balance of the offset account is deducted from (or ‘offset’ against) the value of your home loan when loan interest is calculated.
For example, if you have a $500,000 mortgage balance and $20,000 in an offset account, you’ll only be charged interest on $480,000.
Your monthly home loan repayment amount will stay the same – it’s just that more of your monthly repayment will go towards paying off the principal, rather than towards interest.
When this pattern is repeated month after month, the savings can potentially start to stack up.
Over time the balance of your home loan may be paid off quicker, which further helps to lower the monthly interest charge.
In this way, an offset account has the potential to be a way to pay off your loan sooner.
How much could I save with an offset account?
The interest savings generated by an offset account will depend on the size of your home loan, the balance of the offset account, and your loan rate.
Here’s an example of the possible savings that we’ve put together using one bank’s offset calculator (most banks have them readily accessible online, just google ‘offset account calculator’).
Let’s say you have a $500,000 mortgage with a 30-year term and an interest rate of 5.99% (comparison rate of 6.37%), plus $20,000 always sitting in your linked offset account.
Over the life of the loan, the impact of the offset account could cut $90,571 off your total interest bill and see you mortgage-free 2.5 years ahead of schedule.
What matters is that you talk to us to know exactly how much you could save with an offset account.
Who is an offset account well-suited to?
There’s a lot to love about home loan offset accounts.
But they may not be the ideal option for every borrower.
The more you have in an offset account, the greater the savings on loan interest. So, you need to be able to resist the urge to dip into the account too often – especially as the funds are usually available at call.
One way around this is to look for a lender that offers multiple offset accounts linked to the same home loan. This way, you can use one offset account for everyday money, and the others to save for personal goals – all while saving on home loan interest.
The other aspect to consider is that offset home loans can come with higher rates and fees. If you have only limited cash savings, you may save more with a lower rate without features such as offset accounts.
Lastly, it’s always worth weighing up whether any money you allocate towards your offset account and paying off your home loan sooner could be better utilised by investing towards your future in other ways.
Refinancing – another way to save on interest
Offset accounts can be one interest savings hack. But you can’t simply add them to every home loan account – adding them can often mean refinancing.
Fortunately, you could potentially double up on cutting the amount of interest you’re paying by refinancing to a lower rate home loan at the same time.
If you’ve had your old loan for a while, it’s worth calling us to see if you could save by refinancing to a loan with a lower rate and/or features better-suited to your needs.
The main point is that you don’t have to just wear a higher interest rate.
Call us to find out if an offset account is a good fit for you – and other strategies that could potentially help you save on home loan interest.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
How first home buyers can buy up to five years sooner
As home prices climb higher, first home buyers can feel like the goal posts are continually shifting further out of reach. But there is a way to potentially cut years off the time taken to buy a home.
As home prices climb higher, first home buyers can feel like the goal posts are continually shifting further out of reach. But there is a way to potentially cut years off the time taken to buy a home.
Saving a first home deposit has never been easy – especially in the last decade or two.
And as property prices continue to head north, first home buyers can be left wondering if they’ll ever be able to save a 20% deposit.
But don’t give up on your dream of home ownership just yet.
We can help you explore opportunities that could get you into the market before prices potentially rise further.
A new report by Domain examines a potential solution that could bring your purchase forward by more than five years.
Home price growth is pushing out deposit timeframes
The past year has seen home values across the nation’s capitals rise by 9.9%, according to Cotality.
However, even this eye-watering increase doesn’t show the full picture.
According to Domain, in some places, the price of entry-level homes has climbed over 20% in the past 12 months – a rise it describes as “an extreme rate of price growth”.
Faced with this level of price rises, saving a deposit can be a real pain point for plenty of first home buyers.
Domain found the time taken to save a 20% deposit now ranges from 2 years and 7 months for an entry-priced unit in Darwin, to 7 years and 7 months for an entry-priced house in Sydney.
But here’s the catch.
While you’re working hard to grow a deposit, home prices are likely to keep rising.
Over the past five years, for example, Domain says the price of entry level homes has risen 68%.
Get started in the market up to 5 years earlier
The federal government’s 5% Deposit Scheme may be the solution that could help you bring forward your home buying plans.
The scheme lowers the minimum deposit needed to buy a home down to 5%, or even 2% for single parents – without the need to pay lenders mortgage insurance.
Eligible home buyers do face property price limits.
However, there are no caps on personal income, and no limit on the number of people who can apply for the 5% Deposit Scheme each year.
Domain crunched the numbers, finding that the 5% Deposit Scheme can help first home buyers looking to buy a house in Sydney get into the market 5 years and seven months earlier.
In Brisbane and Adelaide, the scheme can cut more than four years off the time taken to save a deposit.
In every other capital, the 5% Deposit Scheme can bring forward buying plans by more than three years.
Is there a downside?
Saving a deposit is just one of the home buying requirements.
Lenders also want to be sure you can comfortably manage repaying your loan.
A potential drawback of buying with a small deposit is that you’ll likely need to borrow more, and this may mean higher loan repayments.
That’s why we encourage you to speak with us at an early stage for a clear idea of the likely repayments to budget for.
Talk to us
Not surprisingly, the 5% Deposit Scheme is proving very popular, having already helped more than 240,000 Australians into home ownership.
Contact us to see if it could be the solution that helps you bring forward your home-buying plans.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
How much do you need to earn to buy a home in 2026?
Sure, saving a deposit is important, but your income can hold the real key to getting into the market. That’s because it shapes your borrowing power.
Sure, saving a deposit is important, but your income can hold the real key to getting into the market. That’s because it shapes your borrowing power.
It stands to reason that lenders will look closely at your personal income when you apply for a home loan.
It’s not just about you being able to comfortably handle loan repayments. Lenders also have a legal responsibility to be sure you’re not taking on too much debt.
The challenge for home buyers is that it can be unclear what sort of income you need to qualify for a home loan.
The reality is that there’s no one-size-fits-all number.
How much you need to earn to buy a home can hinge on where you plan to buy – and whether you plan to buy solo, or team up with a co-buyer.
Average income is over $100,000 – is it enough?
Across Australia, average weekly earnings for full-time employees are around $2,130. That adds up to an annual income of about $110,791.
These figures are based on May 2025 data, so chances are, the average is a little higher in early 2026.
Even so, the average full-time income may not always be enough for some home buyers to get into the market – especially if they choose to buy solo.
Income requirements vary between cities
Domain looked at how much buyers around Australia likely need to earn to get into the market, assuming a 20% deposit.
It found that a solo buyer in Sydney, the nation’s most expensive property market, may need to earn about $232,000 annually to buy a home. A couple buying in Sydney should each earn $121,000.
Melbourne buyers fare slightly better. A single person needs around $145,000 annually, while a couple each needs about $85,000.
In Brisbane, a single buyer should aim for $166,000, dropping to $94,000 for each person in a couple.
A solo buyer in Adelaide should earn about $143,000, or an income of $84,000 when coupled.
In Perth, where home prices have jumped 97% in the past five years, a single buyer should have an income of $147,000 to buy a home, falling to $86,000 for each person in a couple.
Buying solo in Hobart usually requires an annual income of around $118,000. For a couple, the income required is about $72,000 per person.
Darwin has the nation’s most affordable property. Reflecting this, a single buyer could potentially buy a home with an income of $111,000, or around $68,000 per person as a couple.
Finally, in the nation’s capital, solo buyers would need to earn about $151,000 to buy a place in Canberra, or $88,000 for each of a couple.
The solution could be flexibility – or government schemes
It’s important to point out that Domain’s analysis is based on buyers opting to buy a house, rather than an apartment.
This matters because houses typically cost more than apartments.
Bear in mind too, the income needs noted above assume a buyer pays the city’s median house price. You may be able to find a more affordable home, depending on where you’re looking to buy.
This highlights the value of being flexible about what and where you buy, especially if you’re a first home buyer.
Additionally, there are a number of government first home buyer schemes that could potentially help you buy sooner.
For instance, the federal government’s 5% Deposit Scheme lets first home buyers get started with a smaller deposit and zero lenders mortgage insurance.
Property price caps apply – or another scheme might be more suitable for your situation – so feel free to reach out to have a chat about them.
Could you upsize your income? Talk to us first
A survey by Canstar found around one-in-two Australians expect a pay rise in the months ahead. If that’s you, you may get a handy boost to your borrowing power.
However, if you’re thinking of raising a hand for overtime work, it’s worth noting that not all lenders include 100% of overtime pay in their income assessment. The same can apply to commissions and bonus payments.
That’s why it’s so important to speak to us – to get a clear idea of your borrowing power based on your current income.
We can help you understand how much you can afford to borrow across different lenders. It may not be necessary to give up leisure time for overtime to achieve your home-buying goal.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Thinking of a tree change? You might find more affordable homes
Growing numbers of younger Australians are opting for regional living, and part of the lure of a ‘seachange’ or ‘treechange’ can be the chance to get more bang for your buck.
Growing numbers of younger Australians are opting for regional living, and part of the lure of a ‘seachange’ or ‘treechange’ can be the chance to get more bang for your buck.
As property values climb higher, the median home price across our combined capitals has just pushed past the $1 million mark.
That’s seeing a rethink among plenty of Aussies, who are swapping city skylines for regional horizons.
Relocations from capitals to regions are outpacing moves in the opposite direction, according to the latest Regional Movers Index.
And recent CommBank research shows more than 5.3 million Australians – about 37% of city dwellers – would consider a tree change.
Gen Z (aged 18-29) is leading the trend, with almost half considering a regional move.
The Regional Australia Institute (RAI) found more affordable housing is a key appeal for more than two-in-five would-be tree changers, rising to one-in-two Gen Xers (1965-1980).
But are property prices really more affordable outside the big cities? And what should buyers be aware of when it comes to buying a home among the gum trees?
A $250,000+ price difference
There’s no doubt regional Australia can give home buyers a generous serve of affordability.
As a guide, the median home price across our combined capitals is currently $1,002,520.
That’s a whopping $258,848 higher than the $743,672 median value across regional markets.
This price gap doesn’t just mean saving on the cost of a regional home, and property-related expenses like stamp duty.
It can also allow first home buyers with a smaller deposit to bring forward their buying plans, or buy a house rather than an apartment.
In addition, a lower purchase price may mean you need to borrow less, which brings the added plus of lower home loan repayments.
What about property price growth?
Let’s bust a few myths.
Yes, you can get great coffee outside of the cities, and no, regional areas don’t always lag behind state capitals when it comes to property price growth.
The latest house price data from Cotality shows regional home values rose 10.3% over the last year, outpacing the 9.2% gains across state capitals.
This isn’t a one-off.
Regional home values climbed 57.4% over the past five years, compared to 42.8% across the combined capitals.
This reflects what the Australian Housing and Urban Research Institute says is a knock-on effect of the long-term trend of people migrating out of our cities and into regional areas.
Could a tree change impact home loan eligibility?
If you’re considering pulling stumps from the city, and moving to the regions, it is important to be confident about your job prospects.
The good news is that many regional locations have healthy job markets, though this is always worth checking (not to mention taking into consideration your occupation or qualifications).
However, you may not need to change jobs at all.
An RAI study shows close to half (47%) of city dwellers planning a regional move would stay in their current job on a remote or hybrid basis.
Either way, it’s a good idea to talk to us about your work arrangements. That’s because home loan lenders like to see that you have stable employment when you apply for a home loan.
Other than that, the process of applying for a home loan is much the same regardless of where you plan to buy.
If you’re thinking of farewelling the big smoke in favour of country living, get in touch with us today. We can run through your situation and explain the home loan options that are a good fit for your needs.
Which generation tops housing wealth in Australia?
Myth busted! Baby Boomers no longer own the bulk of housing wealth in Australia. We reveal who does, and how you could get started in the property market.
Myth busted! Baby Boomers no longer own the bulk of housing wealth in Australia. We reveal who does, and how you could get started in the property market.
As many Baby Boomers (those born between 1946 and 1964) start to enjoy their retirements, they are passing the baton of property ownership over to the next generation.
A new report by KPMG reveals that Gen X (born 1965-1980) now holds more property-based wealth than any other generation.
Not to be outdone, Millennials (1981-1996) are also making a strong start in property wealth.
Let’s take a look at what’s happening, and how much property wealth each generation has accumulated to date.
The “great wealth transfer”
Baby Boomer households are still the wealthiest in Australia, with net worth (total assets minus debt) averaging $2.375 million per household.
However, KPMG says that as Boomers progressively hang up their work boots, they are downsizing their properties, and shifting money into cash and superannuation.
The upshot is that Boomers now have property wealth averaging $1.36 million per household.
While that’s nothing to be sneezed at, it puts Boomers in second place behind Gen X, with an average property wealth of $1.455 million per household.
Not surprisingly, both generations are ahead of Millennials, who have $890,000 in average household property wealth.
But there’s an unexpected twist to the property wealth story.
Property wealth is growing fastest for young Aussies
Younger Australians have the lowest levels of property wealth.
But they may have the upper hand when it comes to increasing wealth.
KPMG says 25-34-year olds, essentially Gen Z (the ‘Zoomers’ born 1995-2012), have seen the biggest gains in household wealth over the past five years.
The Zoomer generation has seen household wealth rise by around 63% since 2019-20.
According to KPMG, that’s largely thanks to rising home ownership among younger Australians – proof that a decent portion is climbing their way onto the property market ladder.
Property ownership pays off
All these stats confirm the key role home ownership can play in our lives.
Our homes aren’t just a place to live. They can also be a long-term investment.
Sure, for most of us buying a home involves taking out a home loan.
But paying off that loan can be seen as a form of forced saving, with the potential for household wealth to grow significantly.
Without the benefits of property ownership, long term renters may face serious financial challenges in retirement, according to an RBA report conducted by the Grattan Institute.
How you can get started
If you’re keen to start building wealth through property, it’s good to know that there are numerous government schemes available that can potentially help you buy sooner.
You may be eligible for a range of support – from the First Home Owner Grant, through to stamp duty savings, and the newly expanded 5% Deposit Scheme, which helps first home buyers buy with a smaller deposit and not pay lenders mortgage insurance.
Contact us to find out which schemes you could be eligible for, what your borrowing capacity is, and whether you’re ready to start your property buying journey.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
RBA hikes the cash rate by 25 basis points to 3.85%
Bad news for mortgage holders around the country: the Reserve Bank of Australia (RBA) today raised the cash rate by 25 basis points to 3.85%. Today we’ll look at why it did so, and how this rate hike could impact your monthly mortgage repayments.
Bad news for mortgage holders around the country: the Reserve Bank of Australia (RBA) today raised the cash rate by 25 basis points to 3.85%. Today we’ll look at why it did so, and how this rate hike could impact your monthly mortgage repayments.
Well, those three rate cuts in 2025 were nice while they lasted!
But recent ABS inflation data (3.8% in the year to December 2025) has the RBA concerned enough to start 2026 with a rate rise in an attempt to beat inflation back down to the 2-3% target range.
The RBA’s Monetary Policy Board said in a statement that while inflation had fallen substantially since its peak in 2022, it had picked up again in the second half of 2025.
“While part of the pick-up in inflation is assessed to reflect temporary factors, it is evident that private demand is growing more quickly than expected, capacity pressures are greater than previously assessed and labour market conditions are a little tight,” the Board said of its unanimous decision.
“The Board judged that inflation is likely to remain above target for some time and it was appropriate to increase the cash rate target.”
How could this affect your minimum 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 could add about $924 a year to your household budget.
If you have a $750,000 loan, your minimum monthly mortgage repayments will likely increase by about $115 a month – or $1380 per year.
Meanwhile, a $1 million loan could increase by about $154 a month – or $1848 a year.
This all assumes that your lender automatically passes on the full 25 basis point hike to your home loan.
Another thing to keep in mind is that when interest rates came down from the recent cycle peak of 4.35% throughout 2025, 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 (very 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.
Feeling the strain of your mortgage? Let’s talk
Ok, so the RBA has lifted the cash rate – it can be a tough pill to swallow for families on tight budgets. But there are still some steps you could potentially take to help offset this hike.
If it’s been a while since your last home loan review, now could be a good time to check in. You might be able to improve your situation – and we’re here to help you explore your options.
This could include renegotiating with your current lender, refinancing to another lender, or debt consolidation.
Every household is unique, and we’re committed to helping you find a solution that fits your needs.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
How high are property prices predicted to go in 2026?
After a lengthy run of rising prices in 2025, some pundits are tipping property prices could keep climbing in 2026. Today we’ll take a sneak peek inside the experts’ crystal ball – and what it could mean for your home buying plans.
After a lengthy run of rising prices in 2025, some pundits are tipping property prices could keep climbing in 2026. Today we’ll take a sneak peek inside the experts’ crystal ball – and what it could mean for your home buying plans.
2025 was a great year for home owners, though a little more challenging for buyers, with property prices climbing 8.6% nationally.
And it seems there could be plenty of steam left in the market to push prices higher in 2026 – and again in 2027.
A new report by KPMG suggests house prices across Australia could climb another 7.7% this year alone.
Of course, a lot can happen to impact property prices over the next 12 months.
So, how might prices perform in your patch?
Below is a rundown of KPMG’s forecasts for property price growth across each of the major capitals.
Sydney: the median house price could approach $2 million
Sydney house prices are being predicted to rise 5.8% in 2026, with further growth of 5.7% in 2027.
Apartment prices are forecast to increase 5.3% this year, backed up by a 4.0% rise next year.
With Sydney’s median house price currently sitting at $1.62 million, if KPMG’s forecast proves correct, the median value could top $1.81 million by the end of 2026.
Brisbane: the big gains may not be over yet
Last year saw Brisbane home values rise 14.6% – some of the biggest gains nationally, second only to Perth.
KPMG believes there’s plenty of fuel left in the tank, with house prices expected to rise 10.9% in 2026, and 8.9% in 2027.
Meanwhile, the price of Brisbane apartments is forecast to rise 7.8% for 2026, followed by growth of 4.9% in 2027.
Melbourne: price growth expected to outpace 2025
With a median residential property value of $854,000, Melbourne is now one of Australia’s more affordable capital cities.
However, prices look set to climb, with forecast house price growth of 6.8% in 2026, and then rising another 7.3% in 2027.
The next 12 months is expected to see apartment values rise 7.3%, with further gains of 5.5% forecast for 2027.
Canberra: moderate prices growth expected
Property prices in the nation’s capital rose just 4.2% in 2025, and moderate growth is expected to continue this year.
KPMG is tipping house prices to rise 4.7% in 2026, followed by growth of 3.3% next year.
Canberra apartments are expected to increase in value by 4.9% over the next 12 months, and then climb 3.6% in 2027.
Hobart: softer growth tipped for 2026
After rising 7.8% over the past 12 months, property prices in Hobart could be poised for softer growth in 2026.
House prices are expected to increase by 5.4% this year, while Hobart unit values are tipped to rise 5.1%.
2027 may see price growth continue, with house and apartment values expected to rise 4.1% and 4.0% respectively.
Adelaide: the run of price growth may continue
Strong price growth in recent years has taken Adelaide’s median home price to $908,000.
This year, KPMG is expecting the run of growth to continue, with house prices forecast to rise by 8.2%, with a further increase of 3.3% in 2027.
Unit prices are tipped to climb 6.6% this year, with growth of 3.8% in 2027.
Perth: another year of big gains
Perth’s property market was a standout in 2025, notching up price growth of 17.2%.
According to KPMG, the WA capital is set to see double-digit price growth again in 2026, with house prices expected to rise 12.8%, and apartment values forecast to increase by 11.6%.
Price growth may be more modest in 2027, with house and apartment prices expected to rise 5.1% and 3.9% respectively.
Darwin: double-digit growth may lie ahead
As Australia’s most affordable capital, with a median home price of $578,000, Darwin prices look set to rise over the next two years.
House prices could increase by a hefty 10.5% in 2026, while apartment prices could see even bigger gains of 13.4%.
2027 should see slightly softer price growth across both houses (up 6.8%) and units (9.3%).
What’s likely to drive prices higher?
KPMG is not alone in expecting property prices to climb this year.
Research group Cotality doesn’t offer price predictions, but it is expecting “modest” price growth through 2026.
The common assumption underpinning these predictions is that two key forces are likely to push prices higher – tight supply of new homes coupled with strong buyer demand.
Although housing construction is increasing, it is unlikely to keep pace with the estimated need for 240,000 new homes needed annually.
Buyer demand has been heavily influenced by three rate cuts in 2025, and the expansion of the first home buyer 5% Deposit Scheme in late 2025.
The upshot is an 18% rise in demand for home loans in December 2025 compared to the previous December.
Time to review your buying plans?
Of course, forecasts are just that – predictions – and plenty could change over the year ahead.
Even so, if you’re holding off buying in the hope of prices softening, you could be left disappointed, and possibly even out of pocket.
Now is a great time to talk to us to find out if you’re home loan ready. We’ll help you work out your borrowing capacity, so you can start working to a house-hunting budget.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Roll up those sleeves – a renovation renaissance is slated for 2026
A renovation boom may loom, with plenty of home owners choosing to renovate rather than relocate this year. So if you have plans for home improvements, it’s worth knowing how to fund your project.
A renovation boom may loom, with plenty of home owners choosing to renovate rather than relocate this year. So if you have plans for home improvements, it’s worth knowing how to fund your project.
Australians love tackling home renovations!
Home owners collectively spend over $1 billion each month improving their place.
And along with a more comfortable home, plus the potential to add value, well-planned renovations can also be a money-saver. They don’t incur big, non-value adding costs (such as stamp duty) that go hand-in-hand with selling up and buying elsewhere.
But amid the excitement of drawing up plans and comparing paint samples, it’s important to consider how you will fund your project.
Here’s what to weigh up.
Lending for renovations is on the rise
For smaller renovations, it may be possible to use cash savings to cover the cost.
But if you plan to shower your place with serious love, chances are you’ll need to consider finance options.
That appears to be the case for a growing number of home owners.
The Housing Industry Association says the value of lending for home improvements is now almost three times higher than it was pre-COVID.
So it’s important that you choose the finance option that suits your needs.
Your home loan could provide a solution
Last year, around 30,000 home owners relied on housing finance to pay for renovations..
Fortunately, rising property values may mean you have enough home equity to help fund renovations.
If that’s the case, you could opt for a loan top-up. This is where your lender agrees to let you borrow extra money by increasing your current home loan.
A top-up can be a simple strategy. However, any change to your old loan should be a cue to look into refinancing.
Switching to a new home loan may allow you to secure a more competitive rate or access improved loan features.
Refinancing can come with costs. That’s why it’s so important to speak with us. We can crunch the numbers to show whether the benefits outweigh the costs, and if refinancing aligns with your goals.
A construction loan could be worth a look
For home owners undertaking major renovations, such as a large extension, a dedicated renovation or ‘construction’ loan might be a useful option.
This type of loan differs from traditional home loans.
Instead of receiving a lump sum of cash, the loan funds are gradually released in line with various stages of the project – from laying the slab to final detailing, for example.
Part of the appeal of a construction loan is that interest is typically only charged on the funds drawdown. This can be helpful for cash flow while the project is underway.
It’s usually only when the renovation reaches completion and is formally signed off that the loan reverts to principal plus interest payments.
Construction loans can be useful for renovators but they’re not available through every lender.
Want to discuss your reno finance options?
If you’re keen to roll up your sleeves and give your place a makeover in 2026, get in touch with us to understand which finance options could meet your needs and budget.
After all, trying to plan a renovation without a budget is guesswork. Having a clear figure to work towards can help you prioritise, and then get the ball rolling on, your 2026 home renovation project.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Nurses, teachers or CEOs: which occupation boasts more property investors?
Owning an investment property isn’t limited to the uber-rich. In fact, investors are usually people you interact with daily. Today, we’ll reveal which occupations are the nation’s most prolific property investors, and how you could potentially join them.
Owning an investment property isn’t limited to the uber-rich. In fact, investors are usually people you interact with daily. Today, we’ll reveal which occupations are the nation’s most prolific property investors, and how you could potentially join them.
Owning a home has traditionally been the great Australian dream, but aspirations to own an investment property may not be far behind.
One-in-four households plan to invest in real estate over the next year, according to Agile Market Intelligence.
If they do, they’ll be joining the almost 2.3 million Australians who reported earning rental income in 2022-23 (the most recent Australian Tax Office figures).
What’s especially interesting, though, is that PropTrack research shows property investors span almost all adult ages, levels of income, and occupations.
But which occupations top the property investor list?
Topping the list is general manager with 65,559 property investors (no surprises there), with CEO/managing director coming in at third with 60,800, according to ATO 2021-2022 financial year data compiled by PropTrack.
But splitting them in second place is teachers (both primary and secondary) with 64,529 investors, while nurses come in at fourth (55,519) ahead of accountants (49,203) at fifth.
Other noteworthy top 20 occupations include electricians (12th with 21,397), truck drivers (18th with 15,378), and police (20th at 15,400).
With the above in mind, let’s look at four possible pathways to investing in property – even if you don’t boast a fancy job title or have substantial savings for a deposit.
Harness home equity
Home values nationally have risen 49.1% over the past five years.
That’s great news for home owners, many of whom may have seen an increase in their home equity (the difference between a home’s market value and the remaining home loan balance).
Depending on how much equity a home owner has, it may be possible to use part of this equity as a deposit on an investment property.
Get in touch with us to find out exactly how much home equity you have, and whether it could be put to work as a deposit on an investment.
Turn a first home into a rental
If you’re ready to upgrade to your next home, you may have considered holding onto your current place and renting it out.
It’s a strategy that could mean saving on selling costs. You may also be able to leverage accumulated equity to help fund the new home.
But if you’re thinking about this pathway to investing, it’s important to speak with us about financing arrangements. Not to mention an accountant, as it can have some considerations to navigate come tax time.
Rentvesting – weigh up the pros and cons
Rentvesting is all about renting where you live while owning an investment property in another, potentially more affordable, suburb.
The beauty of this approach is that you get to call your preferred suburb ‘home’, while having the opportunity to earn rental income, and potentially benefit from a rise in the value of the investment property over time.
According to PropTrack, rentvesting is on the rise, especially among first home buyers.
However, as with any investment strategy, there can be pros and cons.
When you buy as an investor, you’re unlikely to be eligible for first home owner grants or other first home buyer concessions.
This should be weighed against the rental income and potential tax savings an investment property may generate.
Co-investing – a possible boost to buying power
If your finances don’t stretch to buying an investment property solo, an alternative may be teaming up with family or friends as co-investors.
This strategy can be a way to pool financial resources and share costs.
However, there is also plenty to plan for, including how expenses will be divided, and working out an exit strategy if one owner wants to bail out ahead of the other co-owners.
If you feel co-buying could be an option that suits your goals, we can explain the various options to finance a property. Some lenders offer mortgages specifically designed for co-borrowers.
Talk to us
If you’re thinking about investing in property, it’s important to speak with a tax professional to understand the tax obligations involved, and weigh up whether property suits your investment needs and goals.
When it comes to financing a rental property, what matters is that you know the options available for your situation – and the buying strategy you have selected.
Like to learn more? Contact us today to find out if you could become a property investor.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Aussie home owners just got $82,000 richer on average
What a way to start the new year! After a strong 12 months in the property market, plenty of homeowners around the nation are now a whole lot wealthier. And their newfound increase in home equity has opened up some exciting possibilities for 2026.
What a way to start the new year! After a strong 12 months in the property market, plenty of homeowners around the nation are now a whole lot wealthier. And their newfound increase in home equity has opened up some exciting possibilities for 2026.
Your home isn’t just a place to live in, it could also be a cornerstone of personal wealth.
2025 proved this in spades.
At a time when holiday spending means many of us may not be feeling particularly wealthy, a rise in your home’s value could see you $82,200 richer (on average) as we head into 2026, according to PropTrack.
Let’s take a look at what’s happening, and how you could put all that equity-driven wealth to work.
2025: a bumper year for homeowners
Australia’s housing market finished 2025 on a record high, spurred on by rate cuts, increased investor demand and expanded home buyer incentives, says PropTrack.
After climbing 8.8% over the year, the national median home value gained $82,200 over the course of the year.
Even bigger gains were recorded in several capital cities.
Sydney’s median value rose by $101,200 through 2025. Brisbane’s median went up $135,900 and Adelaide’s median home price grew by $101,600.
Perth topped the leaderboard of gains, with the city’s median home price rising by an eye-watering $148,100 in 2025.
A few smart strategies could help you get a lot more bang from your higher-home-equity buck! Here are three ideas worth a look.
1. Give your place a makeover
Whether your home is a little too snug for your family’s needs, or it could just do with a thorough refresh, your home equity could help fund the renovation improvements.
Even better, renovations don’t just make your place more liveable, they can also add to your property’s value – making renovations a win-win.
2. Invest in a rental property
Property may not only serve as a long term investment, it could also generate regular rental income plus valuable tax savings (always speak to your tax professional for tailored advice on this).
And if you think you have to be rich to become a landlord, think again.
Teachers, nurses, truckies and cops are among the nation’s most-prolific property investors.
That’s because one trick to becoming an investor is to use your resources wisely.
The good news is that you may be able to use home equity in lieu of cash as a deposit on an investment property.
This may not only let you hang onto cash savings, it could also mean you use one valuable asset (your home) to fund another asset (the rental place), which may also grow in value.
3. Refinance and reap the rewards of a new loan
An increase in your home’s value may offer more than bragging rights around the office water cooler.
It could also help you save on interest on your home loan.
When your home’s value increases, your loan-to-value ratio (LVR – that’s the value of your loan as a percentage of your home’s market value) decreases.
This shift matters because a lower LVR may mean you represent less risk to lenders. And this might see you eligible for a lower interest rate.
Refinancing isn’t just about rate savings though.
Switching to a new loan and lender could help you access new or more suitable loan features.
It could also free up funds for other purposes – anything from giving your kids a quality education, to paying for your next holiday, or consolidating personal debt to streamline your finances.
Talk to us about putting your equity to work
If you’re not making the most of your home equity, it might be time to ask yourself ‘why not?’.
Get in touch today to find out how you could make your home equity work harder.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Happy New Year! Let’s discuss some potential 2026 goals
There’s nothing quite like a New Year’s resolution to fire you up for another lap around the sun. Whether you’re looking to buy your first home, save on your mortgage, or leverage the equity in your current position, here are three resolutions to consider for 2026.
There’s nothing quite like a New Year’s resolution to fire you up for another lap around the sun. Whether you’re looking to buy your first home, save on your mortgage, or leverage the equity in your current position, here are three resolutions to consider for 2026.
So long, 2025 … You know what? We’ve got to admit, you weren’t too bad after all.
Three RBA rate cuts, a bunch of first-home buyer schemes unveiled, and national property prices increasing by 8.7% all bode well for the three potential New Year’s resolutions we’ve outlined below.
Potential goal 1: cracking the property market
If you’ve been keen to buy your first home for a while, then we’ve got good news for you.
There are currently a range of government schemes that could help you get into the property market with less than the typical 20% deposit.
For starters, in October last year the federal government expanded the Home Guarantee Scheme (HGS) so that all first home buyers are now eligible to buy a home with as little as a 5% deposit – and not pay lenders mortgage insurance.
Then in December, the federal government launched its long-awaited Help to Buy shared equity scheme.
Under the scheme, eligible home buyers only need a 2% deposit. From there, the government contributes up to 40% of the purchase price of a new home and up to 30% for existing homes, in exchange for an equity stake in the property.
There are also potential state and territory first-home owner grants and stamp duty concessions you may be eligible for, meaning you could already have enough saved up to buy your first home.
Get in touch today and we’ll help you crunch the numbers.
Potential goal 2: leverage newfound equity in your home
As we touched on earlier, national property prices have increased 8.7% over the past 12 months.
In the same period, we had three RBA cash rate cuts, meaning interest rates are lower than they were 12 months ago.
Now, with those two special ingredients combined, you could potentially refinance your home loan to a lower interest rate, cash out some newfound equity in your current property at the same time, and use that equity to invest in an investment property, shares, or a renovation.
Contact us today to get a clearer picture of your home’s potential equity – and how you could use it to achieve your financial goals in the year ahead.
Potential goal 3: refinance to a more competitive interest rate
The mortgage market remains highly competitive on the back of three rate cuts in 2025, with some lenders recently trimming their variable home loan rates.
So there’s a chance you could be eligible for a lower rate, especially if you’ve had the same home loan for a while.
Refinancing to a more competitively-priced loan could put money back in your pocket during 2026 (and beyond), or help you enjoy loan features better-suited to your needs.
Contact us today for a home loan review. The odds of another RBA rate cut this year are looking increasingly slim, but that doesn’t mean you can’t create a special rate cut of your own!
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Season’s greetings! Here’s to a well-earned summer break
As the Christmas and New Year’s festive season rolls around, we want to take a moment to sincerely thank you for your trust and support throughout 2025.
As the Christmas and New Year’s festive season rolls around, we want to take a moment to sincerely thank you for your trust and support throughout 2025.
Fortunately, we had a bit more to smile about this year, with three RBA rate cuts and national property prices increasing by 8.7%.
That said, 2025 wasn’t without its hardships, with many families around the country still facing cost-of-living pressures and inflation starting to creep back up again (which inevitably brings with it talk of rate hikes, rather than cuts).
Looking ahead, if there’s anything we can do to help ease any cost-of-living pressures you may be experiencing, please don’t hesitate to get in touch and we can review your home loan.
Alternatively, if you’re looking to buy your first home, second home, or an investment property (or a family member mentions any of the above over the Christmas catch-up), we hope you think of us!
But for now, take a well-earned pause, enjoy the festive moments, and spend time with the people who matter most.
While the year ahead will no doubt bring its own surprises, one thing remains constant: our commitment to supporting you at every stage of your property journey.
Wishing you a joyful Christmas, a relaxing break, and a bright, opportunity-filled year ahead. We look forward to supporting you again in 2026.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Your suburb’s 2025 property report card is in
You might’ve seen recent headlines that national property prices made another big jump this year. But do you know exactly how your suburb and property type performed? Well, today we’ll show you how to find out in just a few quick clicks.
You might’ve seen recent headlines that national property prices made another big jump this year. But do you know exactly how your suburb and property type performed? Well, today we’ll show you how to find out in just a few quick clicks.
Over the past year, home prices have risen 8.7% nationally, according to PropTrack.
If you think that’s impressive, over the past five years, property values have jumped more than 50% nationally.
The question is, what’s the current market value in your neck of the woods?
Here’s how to find out.
Does your neighbourhood top the table for price growth?
To discover what the average home is worth in your neighbourhood, and how much values have increased in the past year, head to Domain’s online property price calculator.
With any luck, you’ll be pleasantly surprised (note: you can toggle between ‘house’ and ‘unit’).
You could be among the home owners around Australia who have seen their place outstrip the national uptick (remember that’s 8.7% in the past year).
Domain data shows there have been some stand-out suburbs.
Houses in Adelaide’s Blair Athol notched up 17% gains in 2025 to reach a median value of $802,500.
Houses in Cabramatta, in Sydney’s south-west, jumped 18% to hit a median of $1.152 million.
Brisbane’s Acacia Ridge (median value $830,000) recorded price growth of 13% in 2025.
Not far behind was the Perth suburb of Baldavis (median value of $720,000), where house price growth topped 11% this year.
And in Melbourne, houses in beachside Frankston North racked up 10% price gains to reach a median value of $650,000.
Why have home prices climbed?
Australia’s housing market staged a surprise turnaround in 2025, thumbing its nose at affordability challenges and cost-of-living pressures, to achieve above-decade-average price growth.
Three rate cuts in 2025, an expanded 5% Deposit Scheme and low volumes of homes listed for sale helped drive values higher.
Put your home equity to work
A rise in your home’s value offers more than bragging rights over Christmas lunch.
It could make you eligible for a lower-rate home loan, offer a source of funds to achieve personal goals in 2026, or be the key that lets you upgrade to your next home.
Call us to find out how you could make the most of a rise in your home’s value.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
No Christmas rate cut – could rates rise in 2026?
Not so long ago plenty of economists were tipping a fresh round of rate cuts in 2026. But the picture’s not so clear anymore. There’s even talk of possible rate hikes next year. Here’s how you can prepare.
Not so long ago plenty of economists were tipping a fresh round of rate cuts in 2026. But the picture’s not so clear anymore. There’s even talk of possible rate hikes next year. Here’s how you can prepare.
Talk about interest rates being unpredictable!
We started 2025 with the Reserve Bank of Australia’s (RBA’s) cash rate sitting at 4.35%. February saw the first rate cut in five years. After two further rate cuts, the cash rate is down to 3.60%.
And thanks to the RBA keeping rates on hold in December, that’s exactly where the cash rate will stay – at least until February when the Reserve makes its next rate call.
The thing is, as recently as October, several of the big banks were predicting lower rates in 2026.
Today, the odds of a rate cut early next year – or any time over the next 12 months – are looking increasingly slim.
Let’s take a look at why, and what you could do about it.
What’s stopping more rate cuts?
Three factors are keeping the cash rate in a holding pattern.
First, the Aussie economy is growing. It’s only managed growth of 2.1% for the year, but the direction is upwards.
In addition, the job market is strong. The unemployment rate fell to 4.3% in October, down from 4.5% in September.
The chief deal breaker for further rate cuts (for now) is rising living costs.
Inflation is currently at 3.8%, well above the RBA’s target range of 2-3%.
Following the December rate meeting, RBA Governor Michele Bullock told journalists “additional (rate) cuts are not needed”. Instead, she flagged the prospect of possible future rate hikes.
Long story short: official rate cuts appear to be off the table.
But that shouldn’t stop you from trying to make a rate cut of your own.
Let’s review your home loan
The mortgage market is highly competitive, with some lenders recently trimming their variable home loan rates.
So there’s a chance you could score a lower rate, especially if you’ve had the same home loan for a while.
Refinancing to a more competitively-priced loan could put money back in your pocket during in 2026 (and beyond), or help you enjoy loan features better-suited to your needs.
Contact us today for a home loan review – you could line yourself up with a rate cut in time for Christmas after all – or possibly even consider fixing it ahead of any more talk of rate hikes in 2026.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
2% deposit scheme ‘Help to Buy’ launches
Imagine being able to buy your own home with just a $12,000 deposit. That’s what the federal government’s new Help to Buy shared equity scheme can offer. But there are some pros and cons to be aware of. Let’s take a look.
Imagine being able to buy your own home with just a $12,000 deposit. That’s what the federal government’s new Help to Buy shared equity scheme can offer. But there are some pros and cons to be aware of. Let’s take a look.
Think back to 2022. That’s when the Labor government first proposed a new Help to Buy scheme.
It sparked plenty of interest back then. But three years is a long time to wait for anything, and chances are plenty of would-be home buyers have now forgotten about it ahead of its December 5 launch date.
Below we explain how Help to Buy works, and weigh up the potential benefits and drawbacks.
How Help to Buy works
Help to Buy is unlike any other scheme currently available.
It doesn’t offer a cash handout like the First Home Owner Grant.
And it goes beyond the 5% Deposit Scheme, which sees the government guarantee a first home buyer’s mortgage, so they can buy with a small deposit and avoid lenders mortgage insurance.
Instead, Help to Buy is a shared equity scheme.
Eligible home buyers only need a 2% deposit. From there, the government contributes up to 40% of the purchase price of a new home and up to 30% for existing homes, in exchange for an equity stake in the property.
Here’s an example.
Olivia is a first home buyer. Using Help to Buy, she purchases an established home costing $600,000.
Olivia pays a 2% deposit of $12,000, and takes out a home loan for $408,000.
The government chips in $180,000 (30% of $600,000).
In this way, Olivia is able to pay the full $600,000 purchase price.
Help to Buy may benefit Olivia in two key ways.
First, it takes less time to save a 2% deposit than a 5% or 20% deposit. So Olivia can bring forward her home buying plans.
Secondly, because the government pays 30% of the purchase price, Olivia can take out a smaller home loan, which lowers her regular loan repayments, making home ownership more affordable.
Who is eligible for Help to Buy?
While Help to Buy is chiefly pitched at first home buyers, it’s also available to those returning to home ownership.
Along with the need to have at least a 2% deposit, income limits apply. Singles can earn up to $100,000 annually, or up to $160,000 for single parents and couples combined.
There are caps too on the value of properties that can be purchased under the scheme. These vary between states and territories as well as between metropolitan centres and regional locations.
Talk to us to find out if you’re eligible.
What to weigh up with Help to Buy
As we’ve noted, Help to Buy offers an opportunity to buy with just a 2% deposit, pay zero lenders mortgage insurance, and get started on the property ladder with a smaller home loan.
No rent or interest is owed on the government’s equity stake, though home buyers still pay upfront purchase costs such as stamp duty and legal fees.
The chief downside is that at some stage the government expects to get its money back.
Home owners using Help to Buy can repay the government’s 30% or 40% equity stake through either voluntary repayments, or from profits on the sale of the property, or when they have the money to do so at some future date, for example, by borrowing the funds.
But it’s important to know the fine print.
Home owners aren’t just expected to repay the government’s initial contribution.
The government’s share of a home is linked to the value of the property at the time of paying out the government’s stake.
Put simply, the government scores a slice of any profits made on the sale of a home in line with its equity stake.
Completing renovations can be more complicated too.
For any major home improvements, Housing Australia (which oversees Help to Buy) will organise a valuation both before and after the renovation.
While this ensures the home owner – and not the government – pockets any value-add from renovation spending, it does mean more hoops to jump through.
One further drawback – for now at least, is that very few lenders are participating in the scheme. More are expected to join from early 2026.
Talk to us to find out more
Help to Buy is currently limited to 10,000 home buyers each year.
As a new and very different way of helping home buyers, time will tell how Australians feel about sharing equity in their home with the federal government.
In the meantime, if you’re a first home buyer or returning to home ownership, talk to us about the various options to help you get started in the market.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Why now may be the time to buy a rental property
2025 has been a big year for property investors. But the rapid growth of investment lending has fuelled speculation about a possible crackdown on loans to property investors. We explain what’s happening, and why it might be worth considering bringing forward your plans.
2025 has been a big year for property investors. But the rapid growth of investment lending has fuelled speculation about a possible crackdown on loans to property investors. We explain what’s happening, and why it might be worth considering bringing forward your plans.
The past year has been a cracker for property investors.
The tightest vacancy rates on record have seen a pick-up in rental growth.
Interest rates on investment home loans are at their lowest since late 2023.
And to top it off, property price growth nationally has hit the fastest pace in over two years.
No wonder investors are buying up property in record numbers.
But as lending to investors hits the fastest pace in a decade, our bank regulator – the Australian Prudential Regulation Authority (APRA) – is watchful.
Some commentators are even suggesting APRA could clamp down on investment lending in a bid to cool property price growth.
Here’s what you need to know if buying a rental property is on your wish list.
Investment lending outstrips mortgages to owner occupiers
There’s no doubt about it, investors have been a driving force in the property market this year.
The September quarter alone saw a 13.6% rise in the number of new investment loans.
That’s 57,624 new investment home loans in the space of just three months – the highest number since early 2022.
Zooming out a little further, the past year has seen lending for investment properties outstrip growth in home buyer loans, according to ABS data.
So what’s the problem?
What’s worrying APRA are potential signs of a pick-up in riskier lending, in particular what it describes as “high debt-to-income borrowing by investors”.
Here’s the red flag for would-be investors.
In a recent report, APRA warned it is “ensuring banks are prepared to implement additional macroprudential tools where required to reinforce lending standards”.
In plain English, APRA is reminding banks that as the industry regulator, it can, and may, change the rules around lending to property investors – a step it has taken in the past.
The lessons of 2014–2018
2014 might seem like a lifetime ago.
However, seasoned property investors may recall 2014 as the year APRA aimed to gently cool the property market by limiting annual lending growth to property investors to 10%.
APRA further tweaked the rules by imposing a 30% limit on interest-only loans, which are typically favoured by investors.
The regulator eventually relaxed its investment lending restrictions in 2018.
Could history repeat?
Property market conditions back in 2014 were similar to those we see today.
Values were rising fast, interest rates were on a downward trend, and household income growth was sluggish.
This has fuelled speculation that APRA may introduce new regulations for today’s generation of property investors.
What it could mean for your investment plans
The decision to buy an investment property should never be rushed.
That said, if APRA does tighten lending policies, investors who delay their decision could find they have missed the boat due to changes to their borrowing power or lender restrictions.
So, somewhat ironically, APRA’s latest warnings may just spur some investors to bring forward their buying plans.
If you’re keen to become a property investor or expand your portfolio, get in touch with us today.
We can help you assess your borrowing capacity as it currently stands, and provide insights into the different funding options that could help you invest.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
5-year goal: 1-in-3 Gen Zs planning to buy a first home
Gen Z may be known for being tech savvy, but they’re also showing their smarts when it comes to home buying, with a surprisingly large number preparing to buy their first home before the end of the decade. Here’s how Gen Zs are making their home-buying plans happen.
Gen Z may be known for being tech savvy, but they’re also showing their smarts when it comes to home buying, with a surprisingly large number preparing to buy their first home before the end of the decade. Here’s how Gen Zs are making their home-buying plans happen.
They don’t call it the ‘great Australian dream’ for nothing.
Owning a home remains a leading goal for many Australians and a recent Westpac survey found more than one in three (35%) Gen Zs – that’s chiefly people aged in their 20s – plan to buy their first home in the next five years.
That’s a 5% increase since the start of the year, and signals a growing wave of confidence among Gen Z home buyers.
What’s driving the jump in home-buying optimism?
Let’s take a look.
Why more Gen Zs are determined to buy a home
First and foremost, almost two in five (37%) say they want to be more independent. Fair enough too – years of living in the family home, or answering to a landlord, can make a place of your own very attractive.
More than one in three (34%) Gen Zs are keen to buy a home as a way of feeling more financially secure.
About the same proportion (32%) simply want to get off the rental treadmill. Makes sense. Why pay rent when you could be paying off your own home?
What they’re doing to meet their goal
The overwhelming majority of Gen Z buyers – about eight in ten – are boosting their deposit by fine-tuning their lifestyle, making fuss-free changes such as cutting back on food deliveries and other non-essentials to save money.
Faced with a shortage of homes listed for sale, Gen Zs are also playing it smart by broadening their search. Four in five (80%) say they’re happy to consider suburbs they hadn’t previously thought of.
Gen Zs are also keeping their options open when it comes to the type of home they’ll buy.
Plans to buy an apartment, which can have an affordability edge, have jumped 2% since the start of the year, while interest in buying a house has cooled slightly.
More than half (55%) of Gen Z buyers are even considering rent-vesting – making their first property an investment, while choosing to rent where they want to live.
What deposit are Gen Zs aiming for?
There’s no getting around the fact that today’s high property prices can be a hurdle when it comes to saving the traditional 20% deposit.
So Gen Z buyers are leaning towards a different solution: buy with a smaller deposit.
Over half (53%) of 20-something first home buyers are moving ahead with plans for a deposit of 10% or less.
The good news is that this has become a lot easier thanks to the newly expanded Australian government 5% Deposit Scheme. It lets eligible buyers get into the market with as little as a 5% deposit and zero lenders mortgage insurance.
Let’s develop your first home strategy
Buying your first home doesn’t have to be a pipedream.
With a clear savings strategy, the backing of government support schemes, and a home loan that is a great match for your needs, home ownership can be achievable.
Contact us today to start the path forward to buying your first home. You could be in a place of your own sooner than you think!
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Australian home owners focus on paying down debt
To save or to pay down your home loan, that is the question. Ok, so it’s not Shakespearean levels of contemplation – but it’s still a big decision facing many Australian families right now. Let’s take a look at what the majority of home owners are leaning toward.
To save or to pay down your home loan, that is the question. Ok, so it’s not Shakespearean levels of contemplation – but it’s still a big decision facing many Australian families right now. Let’s take a look at what the majority of home owners are leaning toward.
A growing number of home owners have given up waiting for rate cuts and are making home loan savings of their own – by knuckling down to reduce their mortgage balance.
A survey by Agile Market Intelligence found 69% of home owners – the highest percentage this year – are making it their top priority to get ahead with their home loan.
Let’s take a look at why so many are deciding to do so.
Interest rates
The interest rate you pay on a home loan will most likely be higher than the rate you’ll earn on a separate savings account.
No surprise there – charging loan interest is one of the key ways banks make money.
So, by paying down your loan sooner, you can typically save more in loan interest charges than the interest you could earn on personal savings.
Better still, the sooner you start paying down your loan, the more interest you can save over time, and the earlier you become debt-free.
That’s because every extra dollar that goes into your home loan comes straight off the loan balance. This in turn lowers the next month’s interest charge.
But as your regular repayments stay the same, more of the next month’s repayment goes towards reducing the loan balance.
In this way, the loan pendulum can start to swing more in your favour, and you can really get stuck into reducing your home loan balance.
Increased equity
When you reduce the amount owing on your loan, your home equity usually increases (so long as the value of your home doesn’t dip in value).
And the more equity you have, the more opportunity you could have to refinance to a lower interest rate loan (there’s more savings for you) or to tap into your home equity to achieve other goals, such as investing in a rental property.
Ways to pay down your home loan sooner
We understand that today’s high living costs mean home owners don’t always have a lot of spare cash to throw at their mortgage.
That’s okay.
It’s possible to pay off your loan sooner – and save on interest charges – even when cash is tight.
Here are some ideas to get you started.
1. Pay more often
Paying half your monthly repayments every fortnight (rather than monthly) means you’ll end up repaying the equivalent of 13 monthly instalments each year instead of 12.
This extra month’s worth of repayments can make further inroads on your home loan balance, and paying fortnightly may also be easier on your cash flow, especially if you can sync repayments up with paydays.
2. Add lump sums
Lump sum payments on your home loan can accelerate its reduction.
That can make it worth depositing tax refunds, end-of-year work bonuses, or other ‘windfalls’ straight into your home loan. Chances are you’ll never miss what you’ve never had.
3. Consider an offset account
An offset account can let you use spare cash to pay off your loan sooner.
The balance of the linked offset account is deducted from your loan balance when monthly interest is calculated. This reduces the monthly interest charge, so more of each repayment whittles away the loan principal.
Talk to us to know if an offset account is suitable for you.
4. Check the rate you’re paying
No matter how hard you work to pay off your home loan sooner, you could be behind the eight ball if you’re paying a higher interest rate than necessary.
For context, the Reserve Bank says the average variable rate is about 5.5%. But according to Mozo, there are plenty of lenders offering a lower rate.
That’s why it’s important not to assume you are paying a competitive rate.
Call us to organise a home loan review. We can confirm the rate you’re currently paying, and let you know if you could save by switching to a loan with a more competitive rate.
How to pay down your home loan sooner
Whether you signed up for a 25- or 30-year mortgage, you don’t have to chip away at your home loan for this amount of time.
And really, how good would it be to become mortgage-free sooner?
If paying down your loan is a personal goal, talk to us to find out more ways you could get ahead with your loan.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Time to buy? House prices tipped to heat up this summer
Property prices are running hot as we head into summer, and the market is tipped to dial up even further over the next 12 months. Here’s how it could shape your home-buying plans.
Property prices are running hot as we head into summer, and the market is tipped to dial up even further over the next 12 months. Here’s how it could shape your home-buying plans.
Aussie home values are sprinting into summer, with property price growth hitting the fastest pace in over two years in October.
The price hikes are unlikely to stop there.
A record nine out of ten (88%) respondents to a recent API Magazine survey expect home prices to climb higher.
It seems the experts agree.
PropTrack believes we could see further price rises over spring and summer, while the Commonwealth Bank says “we still expect further gains” this year.
If forecasts of rising home prices prove accurate – and as we’ll see, there’s a decent chance they could – now could be the time to bring forward your home-buying plans.
Home prices jump 6.1% in the past 12 months
It’s been a big year for property, with home prices nationally climbing 6.1% over the past 12 months.
Several factors have come together to push home values higher.
Lower interest rates have boosted home buyer demand.
Tight rental markets have fuelled investor activity, with investors now making up around their highest share of lending since 2017.
Further piling pressure on home prices is the additional demand created by the newly expanded 5% deposit first home buyer scheme.
On the flipside, supply remains tight. And supply doesn’t look like catching up to demand any time soon. New home completions are already 15.6% below average for the past decade.
The bottom line is that the potential for further price rises might be a compelling reason to bring forward home buying plans.
Home price growth is eating away at borrowing power
Buying a home is never a decision that should be rushed.
But with no end in sight to property price gains, now may be time to advance your buying plans.
Speak to us – we can let you know if you are home loan-ready right now.
This is not about sprinting in to buy the first home that comes along.
Rather, it’s a matter of making the most of the buying power you have today, because it could be lower tomorrow if home prices keep rising.
You see, while the Reserve Bank’s interest rate cuts have given households on the median income a $51,000 increase in borrowing power, median home values across our big cities have risen almost $54,000 since February.
Put simply, home prices are rising faster than home buyers’ borrowing power.
Call us to get the ball rolling
An unexpected jump in inflation has put a question mark over possible future rate cuts.
So home buyers can’t rely on future rate cuts for an uptick in personal borrowing power.
A better strategy is to talk to us today.
We can explain if you’re home loan-ready right now, and how to get the ball rolling on home finance before prices rise further.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.