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.

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.

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.

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.

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.

Contact us for support to help find a home loan that allows you to achieve your property goals.

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.

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 statement 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.