http://www.prohomelending.com.au/

PROhome Lending, Buderim, Sunshine Coast (2026)

04/11/2025

HOW TO BUY YOUR FIRST HOME WITH A SIBLING OR FRIEND.

Saving a deposit for your first home can be tough, which is why some Australians team up with a sibling or friend to buy a home together. It’s an arrangement that can make ownership more achievable, especially when combined with the First Home Guarantee.
The First Home Guarantee allows eligible buyers to purchase their first home with a 5% deposit without paying lenders mortgage insurance (LMI). The scheme can be used by two people jointly – and they don’t have to be a couple.
You can apply with a partner, sibling or friend, as long as both applicants meet the eligibility criteria. To qualify, you must:
• Be Australian citizens or permanent residents aged 18 or older.
• Be first-home buyers (or not have owned property in Australia in the past 10 years).
• Intend to live in the property as owner-occupiers.
• Apply for an eligible loan with principal-and-interest
repayments through a participating lender.
That means you can’t use the scheme to buy an investment property. You’ll need to move in once the purchase is complete and live there as your main residence. The rules don’t prohibit renting out a spare room, provided you still occupy the property yourself.
Why co-buying can make sense:
Pooling your resources with someone else can help you:
• Enter the market sooner by sharing the deposit and borrowing
costs.
• Access better locations or larger properties than you could
afford alone
• Share ongoing expenses such as council rates and
maintenance.
However, it’s essential to plan carefully. You’ll both be on the loan, which means sharing full responsibility for repayments. It is a good idea to come to a formal agreement setting out each person’s share, responsibilities and what happens if one wants to sell or move to help prevent future problems.
Buying together – and using the First Home Guarantee – could open doors that once felt out of reach.

Speak with Prohome Lending today to discuss your personal financial situation to see if you qualify.

21/05/2025

5 TIPS TO SAVE AS INTEREST RATES COME DOWN:

Whether or not we get further cash rate cuts, there are steps you can take to save.

1. Compare and negotiate your rate

Get to know what rates are available and how yours compares. Use this information to talk to your lender. It never hurts to ask for a lower rate, and if they won’t offer a competitive deal, consider switching to another.

2. Keep your repayments the same
If your lender reduces your minimum repayments, consider asking to keep them at the higher amount. You could save a lot in interest and pay off your loan faster.

3. Make extra repayments
As we approach the new financial year, keep in mind you could contribute money you receive from a tax return or bonus toward your home loan. It could make a big difference over time.

4. Take advantage of your offset account or redraw
Putting extra savings in an offset account or into a home loan with a redraw facility can reduce the interest on your loan, but still be available if you need it.

5. Switch to fortnightly repayments
Simply changing from monthly to fortnightly repayments can help you save big. That’s because you will make 26 fortnightly repayments rather than 12 monthly, meaning you are paying off more of the loan faster.

If you have a home loan, now could be a good time to check it is still competitive. We can research a panel of over 60 lenders to see how yours compares. We can also look at your situation and goals to determine if the structure of your loan is right for you.

19/02/2025

FEBRUARY CASH RATE CUT.....WHAT IT MEANS TO YOU!
In positive news for many, the Reserve Bank of Australia (RBA) has today cut the cash rate. The cash rate is now at 4.10%, down from 4.35%, in the first cut since November 2020. The decision to reduce the cash rate follows data that shows inflation in Australia has cooled to be within the RBA’s target range of 2-3% (though underlying inflation remains slightly higher).

But how does this impact you?

The cash rate is closely tied to the interest rate lenders charge in their loans, or offer on savings products. If the cash rate is lower, lenders can borrow money for less, which they could pass on in lower interest rates. While they are not necessarily obligated to pass on the full cut to their customers, there will be many eyes watching to make sure savings are passed on. It will most directly be noticed in variable rates, but long-term predicted reductions should also see reduced fixed rates.

For those who are considering buying, lower interest rates mean lower repayments and increased ability to service the loan. This can mean increased borrowing capacity.
Over the next few days, lenders should begin decreasing interest rates. If you have a loan with a variable rate, check in to see if it has dropped. It could be a good opportunity to compare your loan including interest rate with others in the market.

We can do that for you. Call Prohome Lending to discuss your options further.

10/12/2024

RBA ANNOUNCES LATEST CASH RATE DECISION.
There would be no early Christmas gift for borrowers from the Reserve Bank of Australia (RBA) as its board has opted to keep the official cash rate steady at 4.35% during its final monetary policy meeting of 2024.

The decision, announced earlier today, aligns with market expectations and marks over a year since the RBA last adjusted rates. The central bank’s most recent rate hike occurred in November 2023, when it raised the cash rate by 25 basis points to its current level.

The hold comes as economic growth in Australia remains sluggish, with GDP expanding by just 0.8% in the year to September 2024 — one of the slowest paces in decades, excluding the pandemic period.
For now, borrowers will need to wait until the new year to see if conditions improve for a potential rate cut. The RBA’s next scheduled meeting will take place in February 2025.

20/03/2024

RBA HOLDS CASH RATE AT MARCH MEETING

The Reserve Bank of Australia (RBA) decided to maintain the official cash rate at 4.35% at its March Board meeting. This follows a period of careful consideration amidst recent economic data.
The decision aligns with market expectations, offering stability for Australian borrowers on variable interest rate loans after a period of rapid rate rises.
While inflation remains above the target band of 2% to 3%, rising 3.4% in the 12 months to January, this holding pattern allows the RBA to assess the ongoing impact of previous rate hikes.
The RBA board said it remains "resolute" in getting inflation back to the target bank and recent information suggests that inflation has continues to moderate.
“The headline monthly CPI indicator was steady at 3.4% over the year to January, with momentum easing over recent months, driven by moderating goods inflation. Services inflation remains elevated and is moderating at a more gradual pace. The data are consistent with continuing excess demand in the economy and strong domestic cost pressures, both for labour and non-labour inputs," the board said.
"The Board needs to be confident that inflation is moving sustainably towards the target range. To date, medium-term inflation expectations have been consistent with the inflation target and it is important that this remains the case."

While some borrowers may be disappointed by the lack of immediate relief, the hold could signal a gradual decrease in rates later in the year, fostering a more confident economic environment.

We don’t know how many rate cuts are expected this year, which may deter clients from fixing for the time being. We may start to see lender policies and servicing ease up as the economy recovers.

No doubt borrowers and sellers are watching with anticipation.

07/02/2024

PROPERTY AND CASH RATE PREDICTIONS FOR 2024

In the first cash rate announcement of the year, the Reserve Bank of Australia (RBA) has held the cash rate at 4.35%. This follows the release of inflationary data that shows the rate of annual inflation decreased in November (4.3%) compared to October (4.9%).

Before 2023 fades from the rear view mirror, we wanted to take a second to turn back and have a look at what we faced and look ahead at what 2024 might bring.

PROPERTY AND CASH RATE PREDICTIONS FOR 2024*

In the first cash rate announcement of the year, the Reserve Bank of Australia (RBA) has held the cash rate at 4.35%. This follows the release of inflationary data that shows the rate of annual inflation decreased in November (4.3%) compared to October (4.9%).

Before 2023 fades from the rear view mirror, we wanted to take a second to turn back and have a look at what we faced and look ahead at what 2024 might bring.

PROPERTY

Despite many economists predicting a fall in house prices, we saw quite the opposite. According to Ray White data, the median house price across the nation increased by 8.2% and the median unit price increased 5.7%. Perth was the strongest market seeing a 15.3% growth in house prices over the year. Adelaide saw the largest increase in unit prices, increasing 10.4%.

2024 Property Predictions:

Ray White Chief Economist, Nerida Conisbee said factors such as population growth, interest rate changes and economic growth attracting investors could play a role in prices in 2024.

“The probability of a rate cut is now far higher than it was less than six weeks ago. If this does happen, it is likely to fuel price growth in not only our largest cities but also other parts of the country,” she said.

The major banks have forecast an expectation property prices will increase at a slower rate in 2024. A report released by CBA predicted a 5% lift in home prices this year saying “constrained supply and robust underlying demand”

A recent CoreLogic survey collected responses from 1,400 real estate agents and found 59% strongly believed rising interest rates would have the biggest impact on property prices in 2024.

CASH RATE

The cash rate has increased 13 times since May 2022 - increasing by 4.25 percentage points. Last year alone saw the cash rate grow from 3.10% in January to 4.35% by the year’s end. That’s an increase of 1.25 percentage points that was then passed onto interest rates on products such as home loans.

2024 Cash Rate Predictions:

The big four have all predicted the cash rate has hit its peak with a chance the RBA will begin making cuts in the last quarter of the year. The predicted rate in December ranges from 3.60% up to 4.10% with further cuts predicted by economists through 2025.

HOME LOAN INTEREST RATES
According to the RBA, the average home loan rate before the cash rate increases in May 2022 was 2.86%. By November 2023 it was 6.39% (keep in mind this is existing loans, which includes fixed-rate). According to Loan Market data, the average home loan in 2023 was $642,555. On a 25-year term paying principal and interest, that would be a difference of $1,292 a month with the monthly repayments today being $4,292.

2024 Home Loan Rate Predictions:

It is hard to predict where interest rates will be by the end of the year as some banks may compete more aggressively by cutting rates or offering deals. If we look at the cash rate predictions by the big four of cuts between .75 to .25 percentage points and apply that to the average interest rate in November of 6.39%, it would bring the interest rate to to between 5.64%-6.14%, if the lender passed on the cash rate cuts in full. This would save the above scenario between $292 to $97 per month.

*Above insights by Ray White Group Chief Economist - Nerida Conisbee

21/12/2023

Merry Christmas....may you and your families enjoy a fabulous Christmas and be safe on the roads!

05/12/2023

CASH RATE ON HOLD......MERRY CHRISTMAS! 😥

The Reserve Bank of Australia has rounded out 2023 with the decision to hold the nation’s cash rate at 4.35%.

2023 hasn’t been an easy year for homeowners or ambitious first-home buyers. The cash rate increased from 3.10% to 4.35% over the course of eleven months in the RBA’s bid to bring inflation back within its target range. According to data from the RBA, the average home loan rate at the start of the year (for existing home loans) was 5.46% p.a.. If the lender passed on interest rates in line with the increased cash rate, that would make the interest rate 6.71% p.a.. Based on the average Australian mortgage of $599,000 on a 25-year term paying principal and interest, that equals an additional $459 per month simply to service the mortgage (from $3,661 to $4,123 per month).

For first-home buyers, the average time to save for a deposit has increased to 14 years, according to a recent paper by the Australian Housing and Urban Research Institute Limited, with the national ratio of median house price to median income now sitting at 8.5.

That is the hard reality many Australians are currently facing. So the question is, what will 2024 bring?

Give me a call to discuss all possible options to make 2024 a little easier on the budget!😞

12/06/2023

Congratulations Glenn & Anna!!
Enjoy owning a beautiful investment property.....I am very happy to be a part of your investment journey pathway into hopefully early retirement.

09/06/2023

This week the Reserve Bank of Australia (RBA) chose to move the cash rate to 4.10%. With the cash rate increasing by 4 percentage points since the start of 2022, many households have felt the pinch of rising interest rates. On top of that, many fixed-rate loans are due to expire in the second half of this year, which could double (or more) the amount of interest those households pay in interest.

If this is you, did you know you might be able to get a lower interest rate? There are a number of things that lenders look at when considering your rate. If these have changed since you took out your home loan, it is possible you could get a more competitive interest rate.

Talk to us today........give Brett a call on 0413 880 559 to discuss your options. You may be able to save thousands of dollars by refinancing your home!

26/04/2023

Inflation slows during March quarter.

The Australian Bureau of Statistics has revealed that inflation rose 1.4% in the March quarter, or 7% on an annual basis, marking the lowest quarterly inflation increase since December 2021.
The most significant increases were a 4.2% rise in medical and hospital services, a 9.7% increase in tertiary education, a 14.3% rise in gas and other household fuels and a 4.7% rise in domestic holiday travel and accommodation.
The March quarter findings caused annual CPI inflation to decrease to 7%, down from 7.8% in December and 7.3% in September.
CreditorWatch chief economist Anneke Thompson said that despite a lower rate in March, the annual inflation rate was still a cause for concern for the Reserve Bank of Australia.
“This is likely to result in a further increase to the cash rate after the May 2023 RBA board meeting,” Thompson said. “While price increases of goods continues to moderate, and indeed have come down in some categories on a weighted average capital city measure, services inflation continues to rise.”
“Higher energy costs, a lack of staff driving up wages and continued demand for travel, education and rental properties are largely behind the increase in services inflation.”
Fingers crossed everyone that we have seen or soon to see the end of rising mortgage rates!!

PROhome Lending

04/11/2025

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07/02/2024

21/12/2023

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