01/10/2025
📢 Finance & Property Update: What You Need to Know This Week
It’s been a pivotal week for the Australian housing market, with major shifts that every agent, buyer, and broker should be across.
💰 RBA Holds Rates at 3.6%—But the Story Doesn’t End There
On September 30, the Reserve Bank of Australia (RBA) held the cash rate steady at 3.6%, citing uneven progress on inflation and a resilient economy. While the decision was expected, the RBA flagged that the September quarter CPI will be critical in shaping future moves.
🏦 Banks Are Cutting Fixed Rates Ahead of the Curve
Despite the RBA’s pause, over 28 lenders have already slashed fixed rates, with Macquarie Bank leading the charge at 4.99% for 2-year terms (Comparison Rate 5.30%*). This reflects growing competition and expectations of further easing into 2026.
🌎 Global Pressure: The US Economy Is Shaping RBA Strategy
The US Federal Reserve’s recent rate cut and ongoing trade tensions—especially new tariffs—are influencing Australia’s monetary policy. The RBA is watching closely, as global uncertainty and weaker US growth could justify a more dovish stance locally. Economists now expect the RBA to cut rates to 3.1% by early 2026, partly due to the “chilling effect” of US tariffs on global demand.
🏡 Home Guarantee Scheme Expansion: A Game-Changer for Buyers
Effective October 1, the federal government has removed income caps, lifted property price thresholds, and eliminated place limits under the Home Guarantee Scheme.
Key highlights:
✅ Buy with just a 5% deposit (or 2% for single parents)
✅ Skip Lenders Mortgage Insurance (LMI)
✅ New price caps: up to $1.5M in Sydney, $950K in Melbourne, $1M in Brisbane
✅ Available to all eligible buyers, regardless of income
📈 What This Means for You
With fixed rates falling, government support expanding, and global forces nudging the RBA toward easing, now is the time to act. Whether you're buying, selling, or advising clients—this is a moment of opportunity.
📲 Want help navigating these changes? Let’s connect.
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*The comparison rates are based on a loan for $150,000 and a term of 25 years. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
2 year fixed rate° and comparison rate‡ for basic owner-occupied home loans with principal and interest repayments. Rate applies for new loans when you borrow up to 70% of the property value with a principal and interest repayment fixed rate loan. Subject to change without notice.
