Raj Mortgage Broker

03/11/2026

The RBA has raised the cash rate to 4.85%, increasing it by 0.25%.
But a changing interest rate doesn't mean you should put your property goals on hold.

This is the time to review your finances, understand your borrowing options and make informed decisions.
Swipe through to understand what the latest RBA decision could mean for you.

03/11/2026

31/10/2026

30/10/2026

Fixed or variable? Most people ask this backwards.

Fix when rates are LOW — not high.

2021: RBA rate 0.10% → lock in 2%, protected when rates rose. Today: 4.60% → fixing locks in a high rate.

Split loan — part fixed (certainty), part variable (flexibility).

On offset:
Most lenders → offset only on variable portion. Some lenders → offset on fixed too.

How offset on fixed works: Loan $300k. Offset $30k. Interest charged on $270k only. Repayment stays the same — but less goes to interest.

These lenders charge a slightly higher fixed rate. For people with good savings — it can still be worth it.

Most big banks don't offer it. Some non-banks do.

Bijay and Sunita: $520k → $310k fixed, $210k variable.

Know how it works. Then decide. 🙏 Raj Mortgage Broker

30/10/2026

Bijay and Sunita came to me before buying their first home.

"Raj dai — fixed or variable?"

Before answering — I explained something most people do not know.

Fix when rates are LOW. Not when they are high.

2021: RBA rate was 0.10%. Lock in 2% and you were protected when rates rose. Today: 4.60%. Fix now and you could be stuck when cuts come.

What is a split loan?

Part of your loan is fixed — same repayment, no change. Part is variable — moves with rates, and you can use an offset account on this side.

Now — here is the part most people do not know:

Most lenders only offer offset on the variable portion. But some lenders offer an offset account on the fixed portion too.

How does offset on fixed work?

If your fixed loan is $300,000 and you have $30,000 sitting in offset — the bank calculates interest on $270,000 only. Your monthly repayment does not change. But less of it goes to interest, and more goes to paying down your loan.

These lenders usually charge a slightly higher fixed rate to cover this. But for someone with significant savings — the interest saving from the offset can still outweigh the higher rate.

Most big banks do not offer this. Some non-bank lenders and some credit unions do. This is one reason why comparing across lenders — not just going to one bank — can matter.

Bijay and Sunita structured $310k fixed, $210k variable. Certainty on most. Offset savings reducing interest on the variable side every month.

There is no one right answer. But knowing how each structure works helps you understand what you are choosing.

Save this — share it with anyone comparing fixed and variable right now. 🙏 Raj Mortgage Broker

General information only. Lender products and eligibility vary. Please speak to a licensed broker.

29/10/2026

Ramesh and Sima bought their first investment property in March 2026. They did not know it at the time — but their timing was important.

Two months later, in the May 2026 Federal Budget, the Australian Government announced changes to negative gearing. The law passed Parliament in June 2026.

This is one of the most important changes for property investors in years. And many people in our community do not know exactly what changed.

Let me explain it clearly.

What is negative gearing?

When your investment property costs more each year than it earns in rent — that is called negative gearing. The loss reduces your taxable income. If you earn $100,000 and the property runs at a $10,000 loss, you pay tax on $90,000 instead. The government effectively shares part of the cost with you.

For decades, this applied to any investment property in Australia.

What changed — and when does it start?

The cut-off date is 7:30pm AEST on 12 May 2026 — Budget night.

For any established residential property purchased after that time, the new rules apply from 1 July 2027.

Under the new rules — the loss from that property can only be offset against rental income or capital gains from the same property. It cannot be used to reduce your salary or wage tax. The loss is not lost — it is quarantined and carried forward. But you cannot use it to reduce your tax bill in the current year the way you could before.

What is still unchanged?

New builds — newly constructed properties — are fully exempt. If you buy a brand new home or an off-the-plan apartment, full negative gearing against your income still applies. Same as before.

Build-to-rent developments and some government housing programs are also exempt.

What about properties bought before the cut-off?

Grandfathered. If you bought your investment property before 7:30pm on 12 May 2026 — your property keeps the original rules. Full negative gearing for as long as you hold it. No changes.

Ramesh and Sima are in this group. Their March 2026 purchase is fully protected.

Capital gains tax also changed:

The 50% CGT discount — the rule that halved the tax on profits when you sell — has been replaced. From 1 July 2027, a cost base indexation method and a 30% minimum tax rate applies. The details are complex. Speak to your accountant before you sell any investment property.

The most important thing I want you to take away:

These rules changed in 2026. They can change again. No government policy lasts forever. If you are making property investment decisions based on the current tax rules — get proper advice from your accountant AND your broker. Understand what you are buying, why you are buying it, and what happens if the rules change again.

Save this — share it with any investor in our community who has not heard about these changes yet. 🙏

General information only. Tax rules and legislation are subject to change. Details depend on individual circumstances. Please speak to a licensed accountant and broker before acting. Raj Mortgage Broker

28/10/2026

Inflation is just one piece of the Puzzle.

28/10/2026

Big headline: went up to 4.3% (up from 4.0% in August, higher than the 4.2% people expected)

28/10/2026

Twelve months ago Priya and Anish made a plan.

"Rates are too high right now. We will wait for them to come down. Then we will buy."

It felt like the smart move. Rates had gone up fast. Everyone was saying cuts were coming. Why pay a high rate when you can wait?

Here is what actually happened.

The RBA raised the cash rate four times in 2026. Total increase: one full percentage point. The cash rate is now 4.60%.

Today, Australia's September 2026 CPI came in at 4.3%. The RBA's target is 2 to 3 percent. We are almost double that.
Housing costs alone rose 5.2% in the same period. The RBA deputy governor has said the inflation outlook is "materially worse" than expected. The next rate decision is on 3 November 2026 — and the market is now pricing in more than a 50% chance of another hike.

Rates did not fall. They rose.

And while Priya and Anish waited — the property market kept moving.

Let me explain what the CPI means for home buyers, because this is something every person in our community needs to understand right now.

What is the CPI?

The Consumer Price Index is published by the Australian Bureau of Statistics. It measures how much everyday prices are rising — food, rent, fuel, services. When the CPI is high, it means the cost of living is going up.

The Reserve Bank of Australia uses the CPI to decide whether to raise, hold, or cut interest rates. Their target: keep inflation between 2 and 3 percent. At 4.3%, we are well above that. Housing costs specifically rose 5.2% in the same period.

Until inflation comes back to target — rate cuts are unlikely.

One more number worth knowing: housing costs in the September quarter rose 5.2% annually. That is higher than the overall inflation rate. While people wait for interest rates to fall — the cost of housing itself is rising faster than everything else.

What this means for home buyers:

If you are waiting for rates to fall before you buy — that is a legitimate strategy. But there are two costs to that wait that most people forget to calculate.

The first is time in the market. Property prices continue to move while you wait.

The second is the rate cut timing itself. Nobody knows exactly when it happens. And when it does — every buyer who was also waiting jumps into the market at the same time. Demand goes up. Prices go up. The "lower rate" benefit can quickly be absorbed by a higher purchase price.

Priya and Anish sat with me last week. We put the numbers on paper — both scenarios. What they owe if they buy now at current rates. What the property might cost in 12 months if they wait. The comparison was clear.

If you have been waiting for the right time — the CPI data just came out. Let's talk about what it means for you.

Send me a message. Let's map out your situation honestly. 🙏

General information only. Interest rate forecasts are uncertain and the RBA's decisions depend on many factors. Please speak to a licensed broker and financial adviser. Raj Mortgage Broker

27/10/2026

Nabin and Kamana had been struggling for six months.

They bought an investment property. Rent coming in — $2,200 per month. Loan repayment going out — $3,200 per month. Every month, $1,000 from their own pocket to make up the gap.

"Raj dai — is this normal? We thought the property would pay for itself."

I looked at their loan. Standard principal and interest. The bank had set it up as the default.

Here is the thing nobody had explained to them.

For an investment property, most experienced investors choose an interest only loan — at least in the early years. And there are good reasons for it.

What is interest only?

Instead of paying down the loan balance each month, you pay only the interest charge. The principal — the loan amount — stays the same. But your monthly repayment is significantly lower.

I switched Nabin and Kamana to interest only.

Repayment went from $3,200 down to $2,150 per month. The $2,200 rent now covers almost everything. Monthly gap: around $50.

Same loan. Same property. Completely different cash flow.

Why investors choose interest only:

Cash flow first. Lower monthly repayments mean less stress, especially in the early years when you are building your portfolio.

Tax advantage. The interest on an investment loan is tax deductible. On a principal and interest loan, the deductible amount shrinks every year as you pay down the principal. With interest only, the full payment remains deductible.

Portfolio strategy. The money you save on repayments can go toward your next deposit. You build wealth through property price growth — not just through paying down debt.

The important catch:

Interest only periods are not permanent. Most lenders offer five to ten years. When the period ends, the loan converts to principal and interest — and the repayment goes up. You need to plan for that moment before it arrives.

Interest only is not right for your own home loan. But for an investment property — understanding this option can change how your portfolio performs.

Know your options before you sign.

Save this — share it with anyone building an investment property portfolio. 🙏

General information only. Loan suitability and tax implications depend on individual circumstances. Please speak to a licensed broker and accountant. Raj Mortgage Broker