It’s Federal Budget time, so let’s cut to the chase. What’s in it for aspiring homeowners looking to purchase a property in 2025?

Here are some of the key takeaways that could affect you.

Purchasing property

Help to Buy scheme

Labor plans to boost its Help to Buy scheme by increasing income and property price caps.

Under the scheme, the Federal Government will provide an equity contribution of up to 40 per cent to support eligible homebuyers (around 40,000 Australians) to purchase a home with a lower deposit and a smaller mortgage.

Around $800 million will be allocated to lift the property price caps and income caps from $90,000 to $100,000 for individuals, and from $120,000 to $160,000 for joint applicants and single parents.

Infrastructure investment

The 2025–26 Federal Budget has allocated $17.1 billion to various road and rail infrastructure projects across the country. It’s a good idea to be across these if you’re planning to buy, as they may affect housing development and surrounding property markets.

Examples include:

• $7.2 billion for safety upgrades on the Bruce Highway in Queensland.

• Over $2.3 billion for critical infrastructure upgrades in the growing Western Sydney region.

• A further $465 million for New South Wales to plan for regional projects and fix notorious choke points, including $250 million to upgrade Mona Vale Road and $115 million to reduce travel times on Terrigal Drive.

• $2 billion to upgrade Sunshine Station in Victoria.

• $350 million for the Westport – Kwinana Freeway Upgrades in Western Australia.

Read the full list here.

Foreign investors banned

The Government announced a temporary ban on foreign purchases of established dwellings for at least two years and said it would crack down on land banking.

From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents and foreign-owned companies, cannot buy an established dwelling in Australia unless an exception applies.

The measure is intended to open up more opportunities for local property purchasers.

Prefabricated homes a priority

Labor will allocate $54 million towards the prefabricated and modular housing industry to boost home building.

Prefabricated homes are manufactured offsite in a factory, then transported to their final location for assembly. They’re said to take half the time to build as traditional brick and mortar homes.

The Government has also committed $120 million from the National Productivity Fund to incentivise states and territories to remove red tape preventing the uptake of modern methods of construction.

Incentives for housing construction tradespeople

Labor will introduce a new Housing Construction Apprenticeship stream, offering eligible apprentices in housing construction trades up to $10,000 in financial incentives. This measure is designed to address workforce shortages and boost housing supply.

Cost of living

New tax cuts and Medicare breaks

From 1 July 2026, the 16 per cent tax rate, which applies to taxable income between $18,201 and $45,000, will be reduced to 15 per cent. From 1 July 2027, it will be reduced to 14 per cent.

A worker on average earnings will get an extra $268 in their pocket in the first year, and $536 from the 2027–28 financial year.

The Government will also increase the Medicare levy low-income thresholds. As a result, more than one million Australians on lower incomes will be exempt from paying the Medicare levy or continue to pay a reduced levy rate.

More energy bill relief

The Government will extend energy bill relief to the end of 2025. Every household and around one million small businesses will receive two $75 rebates directly off their electricity bills through to 31 December 2025.

Health

The Government plans to reduce the maximum cost of medicines on the Pharmaceutical Benefits Scheme (PBS) for everyone with a Medicare card and no concession card. From 1 January 2026, the maximum co-payment will be lowered from $31.60 to $25 per script.

Cutting student debt

The Government will reduce all outstanding Higher Education Loan Program (HELP) and other student debts by 20 per cent, subject to the passage of legislation.

The Government will also increase the amount that people can earn before they have to start paying back their loans ($54,435 in 2024–25 to $67,000 in 2025–26).

Growing wages

The Government intends to ban noncompete clauses for low and middle income employees. This is expected to boost wages, with workers free to move to higher paying jobs. Aged care and childcare workers are set to receive wage increases.

Looking to buy a property?

There’s a lot to digest from the Federal Budget, but we’re here to answer your questions.

There have also been other election promises from Labor and the Coalition which could affect your purchasing plans. For example, a re-elected Labor government would allow all Australian first home buyers to buy with a 5 per cent deposit, avoiding lenders’ mortgage insurance, in an expansion of an existing scheme. The government will also commit $10 billion to build 100,000 new homes exclusively for first homebuyers, and will introduce a $1,000 instant deduction from 2026–27.

Meanwhile, the Coalition has vowed to allow first home buyers of newly built homes to deduct part of the interest paid on their mortgage from their income taxes if elected. The scheme would be limited to five years and participants would only be able to claim back the interest paid on the first $650,000 of their home loan, with no limit to the purchase price of the property.

If you need clarification about how any of the Federal Budget measures or election promises impact your property purchasing goals, please contact us for assistance.

Managing your home loan well can give you more flexibility and help you pay off your mortgage sooner. A redraw facility could be one way to reduce interest costs while still having access to extra funds when you need them. Here’s what you need to know.

What is a redraw facility?

A redraw facility lets you access any extra repayments you’ve made on your home loan. Instead of those funds simply reducing your loan balance, you can withdraw them later if needed.

How does a redraw facility work?

Say your minimum mortgage repayment is $3,600 a month, but you regularly pay $3,800. After a year, you’d have $2,400 in extra repayments. If an unexpected expense comes up – like urgent home repairs – you can redraw some or all of that extra money from your loan.

Benefits of a redraw facility

Every extra repayment reduces your loan balance, which means paying less interest over the life of the loan.

Redraw facilities let you manage your cash flow, providing convenient access to extra funds when needed without relying on high-interest loans or credit cards.

Redrawing funds is usually straightforward through online banking or by contacting your lender.

Things to keep in mind

While redraw facilities offer flexibility, here are a few things to consider:

Some lenders may charge a fee each time you redraw, or place limits on minimum or maximum amounts.

Not all mortgages come with a redraw facility, and conditions can vary significantly between lenders.

Withdrawing funds increases your loan balance, which could result in paying more interest over time compared to leaving the funds untouched.

Redraw vs offset accounts

While offset accounts and redraw facilities both help reduce interest costs, they serve different purposes. Offset accounts can be beneficial for keeping savings readily available, whereas redraw facilities provide straightforward access to extra repayments. A redraw facility might suit you best if you prefer simplicity and don’t need regular access to extra funds.

Ready to make your mortgage work smarter?

Having the right loan features for you can make a big difference in managing your mortgage and keeping costs down. If you’d like to understand how a redraw facility could work for you, let’s chat.

Please contact us for assistance.

Renovating can be a great way to add value to your property, improve your living space, or boost your rental return. But before you start knocking down walls, there are a few key things to consider. A renovation can quickly turn from a smart investment into a financial headache if you don’t plan properly.

Here’s what to think about before diving in.

Know your goals

Before spending a cent, ask yourself: Why am I renovating?

If it’s your home, think about whether you’ll stay long-term or sell in a few years. If you’re flipping or updating an investment property, focus on maximising value without overcapitalising. Understanding your goal will shape your renovation choices and your budget.

Plan your budget (and stick to it!)

How much will your renovation cost? More importantly, how much should it cost?

As a general rule of thumb, spend no more than 10% of your property’s value on renovations.

Costs add up fast, so get multiple quotes and budget for unexpected expenses – they always pop up!

Are you overcapitalising?

Every suburb has a price ceiling – a maximum price buyers are willing to pay. Before you renovate, research what similar homes in your area sell for.

If you spend too much, you risk pricing your property out of the market and losing money when you sell. Try to focus on renovations that deliver a return, such as:

• Kitchen and bathroom updates

• Fresh paint inside and out

• Extra bedroom or ensuite

• Storage solutions

• Outdoor entertaining areas

Luxury finishes and expensive fittings might look great, but will buyers pay extra for them? Keep your upgrades practical and aligned with market demand.

DIY or call in the experts?

Doing the work yourself can save money, but only if you know what you’re doing.

Some DIY-friendly jobs:

• ✔ Painting

• ✔ Removing old flooring

• ✔ Dismantling cabinets

Jobs best left to the professionals:

• Electrical and plumbing work (not only illegal without a licence but dangerous!)

• Structural changes

• Waterproofing bathrooms

Also, weigh up time vs cost. If a pro can get it done faster and better, it might be worth the investment.

How will you finance your reno?

There are several ways to fund a renovation, depending on your budget and plans:

• Refinance or top up your mortgage

• Use redraw or offset account funds

• Consider a construction or personal loan

Not sure which option suits you? We can help you find the best way to finance your reno based on your goals.

Final thought: plan before you renovate

A successful renovation is all about planning, budgeting, and making smart choices. Whether you’re upgrading your home or renovating for profit, focusing on high-impact, cost-effective improvements will give you the best return.

Thinking about renovating? Let’s chat about how to finance your project the right way.

Please contact us for assistance.

The Reserve Bank of Australia (RBA) has cut the cash rate and interest rates have come down. So, is now a good time to buy property?

The answer depends on your unique circumstances and goals. But generally speaking, it’s always best to get a leg up on the property ladder sooner rather than later.

Here are some compelling reasons to consider jumping right in, rather than staying on the diving board.

Competitive interest rates

In February, the central bank lowered the cash rate from a 13-year high of 4.35 per cent to 4.10 per cent. Many lenders, including Australia’s big four banks, announced they would pass on the rate cut in full.

The average home loan interest rate is now sitting at around 6.24 per cent p.a. for owner occupiers. Interest rates are far from the levels we were seeing a few years ago when they were in the 2 per cent range, but they have been coming down in recent weeks, which is good news for prospective borrowers. Many lenders are also offering sweeteners to entice borrowers through their doors. Examples include free extra repayments and redraws, no application or ongoing fees, and annual rate discounts.

Your borrowing power may have increased

With interest rates coming down, your borrowing capacity, or the amount a lender is likely to lend you, may have increased. In other words, you may be able to afford a property that was previously just out of reach.

For new borrowers on an average income with an average-sized loan, the change in the cash rate is estimated to have increased borrowing power by $9,000 to $10,000. That, combined with the tax cuts that came into effect from 1 July last year and the easing of inflationary pressures, may put borrowers in a better financial position to borrow right now.

If you’re interested to know what your current borrowing power is, get in touch and we’ll crunch the numbers for you.

Property prices have rebounded

Up until the February cash rate cut, there were clear signs that Australia’s property market was cooling.

Over the past few years, property prices across the nation surged. Between March 2020 and January 2024, housing values increased 33.9% – or $239,000 – while units shot up 11.2 per cent (around $65,235).

But last year, property price growth slowed. Five of the eight capital cities recorded a decline in values between July and December. In October, property prices peaked, then dropped 0.1 per cent in December.

In February, however, national home values increased 0.3 per cent, breaking a short and shallow downturn that lasted just three months. Every capital city except Darwin recorded a monthly rise in values in February. If property prices continue to rise, it may be wise to fast-track your purchasing plans and take advantage of current prices while they last.

Ready to get started?

Deciding when to buy a home or investment property comes down to your personal financial circumstances and goals. However, there are many good reasons to consider purchasing right now. Before you start house hunting, chat to us about getting your finance pre-approved. That way, you’ll be ready to negotiate with confidence when you find the right property for your needs.