As the calendar flips over to July, now’s a good time to give your home loan a once-over. We look at five strategies that could help you save on interest and pay off your mortgage sooner.
With three rate hikes already this year, and a big variation in rates between lenders, it’s worth checking you’re not paying too much interest on your mortgage this new financial year.
The hard part can be knowing how or what to weigh up. Here are 5 things to consider.
Not sure about the rate you’re paying? You’re not alone.
Over one-in-two home loan borrowers are in the dark about their mortgage rate.
Not knowing this number can be an expensive oversight.
So, grab a copy of your latest loan statement or jump onto your banking app. You’ll usually find your current rate under your account details.
As a guide to how your rate shapes up, the average variable rate now is about 6.45%.
The thing is, there are still some lenders offering home loan rates that start with a ‘5’ or a low ‘6’.
If you’re not happy with the interest rate you’re paying, call us to find out how much you could save by refinancing.
Loans can come with a variety of features that may help you save on interest, and pay down your mortgage sooner.
However, having access to these features may mean paying a slightly higher interest rate.
If you’re not making use of them all, switching to a lower rate ‘basic’ loan could see you save.
While it’s natural to focus on your interest rate, it’s also worth keeping an eye on home loan fees. They can really add up over time.
Around 14% of loans still charge monthly fees, and where they apply, these fees can be as much as $15 a month.
Talk to us if you’re being slugged with a monthly fee. It’s an additional cost you may be able to avoid by moving to a different loan.
Home loan flexibility is all about how well your mortgage can adapt to changes in your circumstances or lifestyle.
This can include being able to make extra repayments, and enjoying fee-free redraw if you need to draw the money back out for unexpected bills.
Is your loan flexible enough to be split between a variable rate (to benefit from any rate falls) and a fixed rate (for repayment certainty)?
Or, is your loan portable? This may give you the flexibility to transfer your mortgage from your old home to a new place if you move, letting you avoid the cost of setting up a new loan.
Great service doesn’t just mean a quick call to check that everything is going smoothly with your home loan.
It’s also about rewarding your loyalty as a home loan customer. And that doesn’t always happen.
According to Canstar, an owner-occupier who took out a loan five years ago and hasn’t renegotiated since, is likely to be paying a rate of 6.98%.
Yet many lenders are offering variable rates below or just about 6.0%.
Despite the potential for savings, more than half (52%) of Austrslian home loan borrowers have never changed lenders.
If that sounds like you, call us to see if you’re paying a home loan loyalty tax simply by sticking with the same lender.
A home loan review shouldn’t take too much time out of your schedule.
Contact us today about a home loan health check. It could help you hit the new financial year running.
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’s just over a month since the Federal Government unveiled its tax reforms on budget night. Here’s how property values are responding across the major cities.
The proposed changes to negative gearing and capital gains tax came as a big shock for property investors around the country – both current and prospective.
Despite the understandable concern and frustration that followed, more than a month after the budget night announcement, home values remain fairly steady – with the recent pause in interest rate hikes offering some relief.
In fact, four state/territory capitals recorded price gains in May.
But what we are seeing is some markets where price growth is slowing, and sellers may be more willing to negotiate. That’s potentially good news for home buyers.
With this in mind, let’s see how the market is faring in your neck of the woods.
The latest data from PropTrack shows how markets moved in May, which covers the immediate post-budget period (the budget was handed down on 12 May).
Home values in both Sydney (median value of $1.238 million) and Melbourne ($846,000) dipped by 0.2% for the month.
Values in Perth (median $1.024 million) cooled by 0.1%, while Canberra ($869,000) saw values dip 0.4%, the largest drop across the major cities.
However, plenty of state capitals saw values continue to climb.
Adelaide (median $950,000) and Darwin ($622,000) topped the leaderboard of gains, with both cities seeing a 0.3% rise in home prices for the month.
Home values rose 0.2% in Hobart (median $735,000). Further north, in the Olympic city of Brisbane (median $1.08 million), prices climbed 0.1%.
Regional markets outshone the big cities, with home values up 0.2% in May. Regional South Australia (up 0.7%) and regional Tassie (up 0.5%) notched up stronger gains.
It’s clear that, as PropTrack puts it, any price falls have been “modest”.
And they follow an extended period of exceptional growth – 7.5% nationally over the past year, and 37.7% over the last five years.
So it’s important to put the current market conditions in perspective.
Research group Cotality is not expecting a “sharp” correction. And there are several reasons why they believe significant price falls are unlikely:
Some investors may, quite sensibly, have been waiting to see how the proposed budget tax reforms would pan out before they became law (it turns out they’ll pass the Senate with support from the Greens).
However, it’s worth remembering that home buyers outnumber investors, and owner occupiers are not impacted by the proposed tax reforms.
Australia’s population grew by 1.5% last year.
That means an additional 412,500 people, who all need somewhere to live.
This population growth will continue to drive demand for homes.
We simply aren’t building enough homes to meet demand.
The Housing Industry Association (HIA) estimates that in 2025 Australia needed to build more than 250,000 homes just to keep pace with demand.
Instead, construction started on just 196,000 homes.
The shortfall in new homes isn’t a quick-fix issue.
The HIA believes demand for homes is likely to exceed supply until at least 2030.
Despite these factors, there is some softening occurring.
Cotality says today’s conditions are starting to favour buyers in some markets.
This could be your opportunity to buy in a more relaxed market.
Talk to us to calculate your borrowing power and for help finding a home loan that helps you achieve your property goals.
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 mortgage broking industry has notched up an exciting record with the news that brokers now account for 81% of Australia’s residential lending market. Here’s why.
For some time now, mortgage brokers have been tantalisingly close to clearing the 80% market share benchmark, and we’ve finally smashed our own previous record.
We’re thrilled to announce that brokers facilitated a record high of 81% of new home loans in the first quarter of 2026.
That’s up from 77% last year, and a big leap from 55% back in 2018.
Those are the findings of the industry body, the Mortgage and Finance Association of Australia, which says brokers settled $124.88 billion in new home loans in the first quarter of 2026 – the highest volume recorded for any January to March quarter.
It’s quite a milestone, and the benefits all flow your way.
Let’s take a look at why more Australians are turning to a broker for help understanding lending options, comparing products and landing a loan that can turn property goals into reality.
Taking out a home loan is a serious step, and you want to be confident of getting it right.
With over 130 home loan lenders to select from, it’s easy to assume home buyers are spoilt for choice.
The catch is that it takes would-be buyers time – and lots of it – to compare just a fraction of the loans available.
That’s where brokers come in.
Our job is to help you navigate the complexity, and assist you in finding a mortgage that meets your needs.
We start by explaining your borrowing power, letting you know if you’re eligible for any first home buyer support schemes, giving you access to a huge range of lenders, and then doing all the legwork comparing rates and features to short-list a suitable selection of home loans for you.
Then we help you complete the loan paperwork, and we liaise with your chosen lender all the way through to settlement.
All-in-all, this gives you a great combination of confidence and convenience when it comes to organising your home loan.
The continued growth of brokers’ market share comes at a time when borrowers are facing housing affordability challenges, cost of living pressures and changing interest rate expectations.
That’s a lot to manage on your own.
Add in more complex lending decisions, and it’s easy to see why more Australians than ever before are turning to a mortgage broker.
Brokers don’t just help streamline the home loan process. We can also make it more rewarding.
Research by Deloitte has found broker customers tend to be more satisfied with their experience than direct-to-lender customers.
One-third of broker customers rated their experience of using a broker a 9- or 10-out-of-10 (with 10 ‘exceeding expectations’), compared to only 20% of direct-to-lender customers.
And, as brokers are required by law to act in your best interests, you can be sure we will only recommend loans and lenders that suit your circumstances.
No matter whether you’re a first home buyer, upgrader, investor, or you just want to know if you could benefit by refinancing to a new loan, we’re here to help.
Call us today to discover why more Australians are choosing to partner with a broker.
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.
Worried you’ll still be paying off your mortgage in retirement? New research shows you’re not alone. Here are five tips to help clear the slate before you hang up your work boots.
A new trend is emerging that could leave retired home owners with less money to spend than they expected.
A recent study found at least one-in-three Gen X homeowners expect to be paying off a home loan in retirement.
Gen Xers aren’t alone.
Separate research shows one-in-three Millennials and one-in-four Baby Boomers expect to carry mortgage debt into retirement.
Why does this matter? And is it possible to pay off a mortgage by the time retirement rolls around?
Let’s take a closer look.
There are several reasons why a growing number of Aussies are retiring with a mortgage.
We are tending to buy a first home later in life.
And homebuyers are borrowing more due to rising house prices.
This has seen the 30 year loan term become pretty standard, up from 25 years in the past.
The upshot is that buying a first home at say, age 35 could mean still paying down a mortgage at age 65, which is close to the average age of retirement.
Below are five simple steps that could help you clear the home loan slate and free up some extra cash for your golden years.
As mortgage brokers, we’re committed to long-term relationships with our customers.
Our annual home loan reviews play a critical role, ensuring you continue to have the loan that matches your needs throughout your home ownership journey.
This is a key starting point to getting on top of your mortgage balance over time.
From your first home loan to your last repayment, life is sure to change.
The loan that was right for you as a first home buyer may not be such a good fit as you progress through life stages.
That makes it worth talking to us regularly to know if you are still getting value from your loan.
Refinancing to a new loan and lender can ensure you enjoy a competitive loan rate, which can help you pay the balance off sooner.
Consistently paying a little extra off your home loan can reduce your balance, lower future interest charges and fast-track the time taken to pay down your loan.
Even small extra payments made consistently can shave years off your mortgage.
Talk to us to know how much you could save with extra repayments.
An offset account is an everyday account linked to your home loan.
The balance of the account is deducted from your mortgage when it comes to calculating your loan interest payments.
For instance, if you have a mortgage of $500,000 and a balance of $50,000 in the linked offset account, loan interest will be charged on $450,000.
In this way, an offset account can help to lower interest costs over time.
It can make an offset home loan a smart way to put savings to work by paying off your mortgage sooner, while still having spare cash available at-call.
The timing of your home loan repayments can make a difference.
Rather than making one monthly payment, it can help to make smaller payments more frequently – either fortnightly or even weekly.
This sees daily loan interest calculated on a lower amount, which can see more of each repayment whittle away at the loan balance.
Paying more frequently can also help you make extra repayments.
For example, when you pay half your monthly repayment every two weeks, you can end up making the equivalent of an extra month’s repayment each year.
Call us to know how much you could save with this strategy.
Whether you’re years or decades away from booking in an over-60s cruise or doing the “big lap”, contact us today for more insights on how you can clear the home loan slate before you hang up your work boots.
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.
House price growth is slowing but experts say not to expect a crash. We look at what’s changed, and why today’s market may offer good opportunities for homebuyers.
Recent home price data from Cotality may be just what homebuyers have been waiting for.
The latest figures show zero (0%) increase in home prices nationally in May – quite a change from the past 12 months when the trend has largely been upwards.
But the national picture doesn’t tell the full story, and the numbers certainly don’t indicate a market “crash”.
Property values fell in Sydney (down 0.9%) and Melbourne (0.8%), with a barely perceptible price dip of 0.2% in the ACT for May.
Meanwhile home prices continued to grow in the other state/territory capitals and across regional markets.
Yet there are signs the tide could be turning in buyers’ favour.
The property market varies significantly across cities right now, in what Cotality describes as “multi-speed conditions“.
That said, market momentum is slowing – the result of higher interest rates, the cost of living squeeze, which is impacting consumer sentiment, and the Federal Budget’s proposed tax reforms aimed at creating a more “level playing field” between first homebuyers and investors.
While home prices seem to be slowing, AMP chief economist Dr Shane Oliver says “any forecasts for a property price crash are likely to be wide of the mark”.
“A crash would require wide-scale forced selling by homeowners – but without much higher unemployment forcing homeowners to sell this is unlikely as Australians will do whatever they can to keep servicing their mortgage,” Dr Oliver explains.
You may have seen media reports questioning whether the so-called ‘property super-cycle’ has come to an end.
This super-cycle refers to the strong period of home price growth seen over the last 30 years.
But not everyone agrees that the current softer conditions are a sign that the market is heading south.
The Commonwealth Bank is still expecting property price growth both this year and next.
REA Group (which owns realestate.com.au) suggests only slightly lower home prices – largely as a result of the tax changes for investors.
Cotality points to the shortfall in housing supply, ongoing population growth, and continuing strength in the job market as reasons why we’re unlikely to see a sharp correction.
The good news is that there are plenty of buying opportunities right now, and they’re up for grabs no matter whether you’re an upgrader or first home buyer,
In Sydney and Melbourne, the advertised supply of homes for sale has risen to above-average levels, providing more choice and better negotiating power for buyers.
Auction clearance rates are down, and that’s seeing sellers increasingly open to pre-auction offers.
On top of all this, the expanded 5% Deposit Scheme is giving first home buyers a real chance to get into the market with a smaller deposit.
With all these shifts in favour of buyers, call us to today to discover the opportunities that may be open to you.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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).
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.
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.
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.
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.
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 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.
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.
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.
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