Is Now a Good Time to Buy?
Buying property is one of the biggest financial decisions you’ll ever make, so timing naturally feels critical. With interest rates shifting, government schemes changing, and markets moving quickly, many buyers are asking the same question right now: is this the right moment to take the plunge? While the best time to buy will always depend on your unique circumstances and goals, the latest data suggests there are strong reasons to act sooner rather than later.
- Interest Rates Are Dropping
- In 2025, the Reserve Bank of Australia began easing rates for the first time in years, bringing the cash rate down from 4.35% to 3.60%.
- As a result, lenders have started reducing home loan rates, with many now offering options below 5% for certain products.
- While rates remain higher than the record lows of a few years ago, the recent cuts are improving affordability and creating opportunities for borrowers to enter the market on more favourable terms.
- Borrowing Power Is Improving
- Lower interest rates expand borrowing capacity—meaning many buyers can now afford properties that were previously out of reach.
- The average variable owner-occupier mortgage rate is sitting at around 5.75% p.a., while three-year fixed rates are closer to 5.41%.
- For a $600,000 loan, monthly repayments are estimated to be around $90 less compared to earlier in the year, offering some relief for households.
- Home Loan Sizes Continue to Climb
- As of June 2025, the average new owner-occupier home loan sits at approximately $678,000.
- First-home buyers are borrowing around $555,000, while investor loans average $674,000.
- Rising loan sizes suggest that property prices are edging higher—delaying your purchase could mean paying more in the near future.
- Government Homebuyer Scheme Changes in October
Another major shift is coming in October 2025, when the government’s homebuyer scheme undergoes significant changes:
- Income limits will be removed
- Price caps are rising across most states and territories
Here’s how the new price caps look for capital cities:
- NSW: $900,000 → $1.5 million (+$600k)
- QLD: $700,000 → $1 million (+$300k)
- VIC: $800,000 → $950,000 (+$150k)
- WA: $600,000 → $850,000
- SA: $600,000 → $700,000
- TAS: $600,000 → $700,000
- ACT: $750,000 → $1 million
- NT: $600,000 → $600,000 (no change)
*Regional caps may differ.
On the surface, this looks like great news for buyers. But in practice, it also means more competition, as higher-income households and bigger budgets enter the market. Demand in quality suburbs could intensify, which may push prices higher.
That’s why October isn’t the time to start preparing—it’s the time to already be ready. Having your pre-approval in place now could allow you to secure the right property before the surge of new buyers arrives.
- Strong Economic Indicators Are Supporting Demand
- In Q2 2025, Australia’s GDP recorded its fastest growth in nearly two years, driven in part by improved consumer confidence following the rate cuts.
- With the economy showing resilience, demand for housing is expected to remain strong, particularly in capital city markets.
- Further rate cuts are possible later in the year, but momentum in the property market may build well before then.
At a Glance
| Factor | What’s Happening Now |
| Interest Rates | Cash rate at 3.60%; lenders lowering mortgage rates |
| Borrowing Power | Expanded capacity and ~$90 monthly savings on a $600k loan |
| Loan Amounts | Average new loans ~ $678k; first-home buyers ~ $555k |
| Government Scheme | October caps rising sharply; income limits scrapped |
| Market Outlook | Economic growth strong; competition expected to intensify |
So, Is Now a Good Time to Buy?
In today’s market, waiting often means paying more later. With interest rates easing, borrowing power improving, and average loan sizes climbing, momentum is already building. Add in the October homebuyer scheme changes—and the competition they’ll bring—and it’s clear that being prepared early is key.
If you’re financially ready, now could be the perfect time to secure your place on the property ladder. Getting your pre-approval in place today means you’ll be ready to act with confidence when the right property comes along.
If you’d like to explore your borrowing power or find the right loan for your goals, we’d be happy to help you make the most of this window of opportunity.
Disclaimer: This blog offers general information on mortgages and finance for informational purposes only. It is not a substitute for personalized advice from a qualified mortgage professional or financial advisor. Use your discretion and seek professional guidance based on your individual circumstances.
