By Ramesh Kandel, Mortgage Broker – Rayz Financial Services
As a mortgage broker working closely with Australian homebuyers, homeowners, and investors, I’ve seen firsthand how quickly the lending landscape can shift. In 2025, we are finally seeing some welcome changes: interest rates are trending down, and property prices are steadily climbing. This combination presents both opportunities and considerations for anyone looking to enter—or re-enter—the property market.
📉 Interest Rates: Turning a Corner
In May 2025, the Reserve Bank of Australia reduced the official cash rate to 3.85%, marking the beginning of a potential easing cycle after years of rate hikes. With inflation easing and GDP growth slowing, many economists now predict further rate cuts may bring the cash rate down to 2.85% or lower over the next 12 months.
For borrowers, this is good news. We’re already seeing lenders reduce variable and fixed interest rates on new home loans, and more competitive refinancing offers are entering the market.
🏡 Property Prices: Steady Growth Ahead
Despite rising interest rates in recent years, Australia’s property market remained remarkably resilient. Now, with rates falling, confidence is returning.
CoreLogic’s May data shows the national median dwelling price has climbed to $831,288, up 0.5% in one month and 3.3% over the past year. The strongest growth has occurred in Brisbane, Adelaide, and Perth, where affordability and local economic growth have attracted more buyers.
Experts are forecasting a 4–5% annual price increase over the next few years, driven by strong population growth, limited housing supply, and renewed buyer interest.
💡 What This Means for You
As a mortgage broker, I always recommend clients think long-term and act with the right advice. Here are some key takeaways:
- First-home buyers may benefit from lower rates and government support schemes, such as the First Home Guarantee and Help to Buy programs.
- Current homeowners paying higher rates should consider refinancing to take advantage of lower interest offers. In many cases, even a small rate reduction can lead to thousands of dollars in savings.
- Investors are returning to the market, supported by rising rental demand, vacancy rates below 1%, and attractive yield opportunities across capital cities and regional growth corridors.
🧠 Smart Borrowing Strategies in 2025
With changing conditions, it's more important than ever to structure your loan correctly. This may include:
- Fixing part of your loan to lock in low rates.
- Using offset accounts to reduce interest costs.
- Accessing equity to invest or renovate.
- Consolidating higher-interest debts into your home loan.
- Reviewing your loan annually to ensure it still suits your needs.
🤝 Let’s Talk
Whether you're looking to buy your first home, invest in property, or refinance for a better deal, now is a great time to explore your options. As a trusted mortgage broker, I work with a panel of 50+ lenders to help you find the right loan structure at the most competitive rate.
Get in touch today for a no-obligation consultation and let’s make sure your home loan is working as hard as you are.
Ramesh Kandel
Mortgage Broker | Rayz Financial Services
📞 0451 065 166
📧 ramesh@rayz.com.au
