Property Finance Update - August 2025

Interest rate cuts are on the horizon — it’s no longer a question of if, but when. And if there’s one trend that has remained consistent throughout economic cycles, it’s this: when interest rates fall, property prices tend to rise. This relationship is well documented and driven by a simple dynamic — lower interest rates reduce the cost of borrowing, which increases buyer demand and, in turn, pushes up asset values.

For business owners and investors, this presents a strategic opportunity. Acting ahead of the curve — before rate cuts are officially announced — can allow you to secure funding on favourable terms and position yourself to benefit from future market movements. Whether you’re considering purchasing commercial property, refinancing existing debt, or expanding your operations, now is the time to start planning. If you'd like to explore your options and understand how upcoming changes may impact your borrowing strategy, we’re here to help.

I've collected some of the big finance and property news that's broken recently, covering interest rates, home loans and property prices. Here’s what’s stood out:

• Falling rates driving price growth

• How to react to rate cuts

• First home buyer scheme extended

• Help available for struggling borrowers

  
  

Read on for the latest news.

“This February’s rate cut was a clear turning point for housing value trends,” said Cotality research director Tim Lawless – and the numbers back him up.

National property prices rose 0.6% in June, marking the fifth consecutive month of growth. Over the past five years, the national median has increased by 44.3%, despite several dips along the way.

Mr Lawless said the latest growth cycle is being fuelled by falling interest rates. “An additional cut in May, and growing certainty of more cuts later in the year have further fuelled positive housing sentiment, pushing values higher.”

In a market where interest rates are coming down and prices are creeping up again, here are three things to keep in mind:

1. Buyers are getting off the fence. Lower rates are bringing more competition back to the market. Be ready to move quickly.

2. Your borrowing power may increase. As rates fall, you might qualify for a larger loan but property prices are rising too.

3. Timing your move matters. With prices rising, waiting could mean paying more later.

Want to get ahead of the next rate cut? Let’s chat about your plans

Even though the Reserve Bank of Australia (RBA) held the cash rate steady in July, some lenders have already started trimming their home loan rates.

That’s because not all lenders are moving in sync. Some are dropping rates early to stay competitive and attract new customers – which means loans that once had very sharp rates may no longer be as competitive.

But that doesn’t mean switching is always the right move.

In a market like this, a proper loan review matters. Sometimes your existing lender has made quiet adjustments behind the scenes to keep you competitive – alternatively, your current loan’s structure, features or flexibility may still be delivering strong value, even if the rate looks slightly higher at face value.

Here’s what to consider:

• Your lender might not be keeping up. But some do adjust selectively for existing customers.

• The lowest rate isn't always the right deal for you. Making sure your loan structure and features match your financial goals is most important.

• A loan review can reveal where you stand. The right choice might be switching – or staying put, with confidence.
  

Not sure if your loan still stacks up? Let’s take a look together

The federal government has released 50,000 new places under the Home Guarantee Scheme for the 2025-26 financial year, giving more Australians the chance to enter the property market sooner.

The scheme is designed to support those who often face the biggest challenges breaking into the market — including first home buyers, single parents and regional buyers. Since its launch in 2020, more than 230,000 people have benefited from the Home Guarantee Scheme.

Rather than requiring a 20% deposit, eligible participants can buy with as little as 5% — or just 2% for single parents — without paying lender’s mortgage insurance. That helps reduce upfront costs and brings home ownership within reach faster.

The new allocation includes:

• 35,000 places under the First Home Guarantee (for first home buyers)

• 10,000 places under the Regional First Home Buyer Guarantee (for regional first home buyers)

• 5,000 places under the Family Home Guarantee (for single parents)

The government has also extended both the Regional and Family Home Guarantees beyond their original mid‑2025 expiry, ensuring continued support for those who need it most.

If you’re in one of the eligible groups, the opportunity to buy may be closer than you think.

Are you eligible for the Home Guarantee Scheme? Let’s find out.

Australia’s banks have strengthened their commitment to supporting customers experiencing financial hardship, with new industry guidelines aimed at making assistance more compassionate and easier to access.

Released by the Australian Banking Association (ABA), the updated guidelines outline best practice for how banks should assist customers who are under pressure – whether due to illness, job loss, relationship breakdown or rising living costs.

ABA chief executive Anna Bligh said banks were focused on removing barriers and improving how they respond to financial difficulty. “When people are doing it tough, the last thing they need is a complicated or stressful process to get help,” she said.

The revised guidelines build on the existing Banking Code of Practice and encourage banks to:

• Spot warning signs earlier

• Reach out proactively

• Have clearer, more empathetic conversations

• Provide practical, personalised support

If you’re struggling with your mortgage or other repayments, don’t wait until things spiral. Banks are ready to help, and early assistance can make a real difference.

Feel free to get in touch if you’d like to understand your options or get help negotiating with your lender – I’m here to support you through the process.