The Reserve Bank’s policies continue to influence mortgage rates, and while we may see some stability, there’s always a chance of fluctuations. Borrowing power will depend on how the economy responds to inflation and global financial conditions.

What this means for buyers:

• If rates remain stagnant, there’s no change your borrowing power.
• If rates drop, you can borrow more—sounds great, right? But with everyone suddenly able to stretch their budget, buyer competition could heat up, pushing prices higher.
• If rates rise, your borrowing capacity will go down. However if you have a pre-approval in place, this will lock in the loan you were pre-approved for, until your pre-approval expires (usually 3 months for most lenders).

Peering into the crystal ball, we see new developments and government-backed projects aiming to boost housing supply. More homes could mean less competition and steadier prices—but not all areas will feel the impact the same way.

What this means for buyers:

• More choices may mean less pressure and better negotiating power.
• Keep an eye on first-home buyer incentives tied to new builds.

The vision is clear—buyers are prioritising lifestyle, sustainability, and affordability. Regional areas, smart homes, and energy-efficient features are gaining traction.

This makes sense to me, because I’m one of these people! I left Canberra 10 months ago, sold my home for $1.5M, and bought a home for half the price ($650k) over West, in a coastal town about 45 mins from Perth. Golf, beach and Bali are now a regular part of my life. Highly recommend.

What this means for buyers:

• Regional properties could offer better value (and a better lifestyle) – agree!
• Homes with eco-friendly features could lead to long-term savings—especially if you’re in WA, where we’re basically a bajillion miles from anywhere, and the power likes to take spontaneous holidays once a month. Solar and batteries aren’t just about being green; they’re about keeping the lights on!

Government incentives are still playing a key role in helping first-time buyers get on the ladder. Stamp duty concessions, shared equity schemes, and grants could make all the difference—but policies can shift, so staying informed is crucial.

What this means for buyers:

• Do your research to make sure you’re getting all the help you’re entitled to.
• Be prepared for potential policy changes that might impact eligibility.

Speaking of which, let me tell you about John and Jane (not real names, obvs). They planned to buy under the First Home Guarantee Scheme (FHGS), and John, thinking ahead, worked extra overtime to boost their deposit and borrowing power—great idea, right? Not quite. His extra earnings pushed him just $800 over the annual income cap, making them ineligible for the scheme. The result? They had to pay $25,000 in Lenders Mortgage Insurance (LMI), reducing their loan and purchase budget significantly.

So, be prepared folks! These schemes often look at your last financial years income to determine your eligibility, which also means that if you have received a decent pay-rise and you know your current income is over the threshold, that gives you until 30^th June this year to buy something and still be eligible.

If you’ve got no idea what I’m even talking about, that’s all good! Get in touch and we’ll help you figure it out.

The rental market remains hot, making investment properties an attractive option. However, new regulations could mean landlords have more responsibilities, impacting rental returns.

What this means for buyers:

• High-demand rental areas may offer strong returns.
• Stay informed about legislative changes affecting property investors.