Rate Cuts in 2025? The RBA Remains Cautious


There’s been a lot of chatter lately about potential RBA rate cuts in 2025, but the Reserve Bank of Australia isn’t making any promises. With inflation and economic stability still front and centre, the RBA is taking a measured approach, meaning any changes to interest rates will be carefully considered and data-driven.

For anyone looking to buy a home or refinance, this uncertainty underscores the importance of staying informed and planning ahead. While lower interest rates could ease mortgage repayments, the RBA’s cautious stance suggests that any adjustments will be gradual.

In the meantime, the property market continues to generate plenty of discussion:

  • Rents have hit record highs, even as the market shows signs of slowing down.
  • First home buyer grants are opening doors for many aspiring homeowners.
  • Thinking about refinancing your mortgage? Here are five signs it might be the right move.
  • Experts are predicting that 2025 could be a buyer’s market.

Let’s dive deeper into these trends and what they mean for you.

Rental Market Trends 2024: A Mixed Bag for Investors and Tenants


The latest data on the rental market trends paints a nuanced picture for both tenants and property investors.

On one hand, the national median rent climbed to a record $620 per week by the end of 2024, according to PropTrack. This rise reflects strong demand for rental properties, particularly in major cities like Sydney, Melbourne, and Brisbane.

On the other hand, rental growth has slowed significantly, with just a 1.6% increase in the December quarter—the lowest rate since 2021. This slowdown can be attributed to several factors, including an increase in housing supply, shifting migration patterns, and affordability pressures on tenants.

What This Means for Tenants

For tenants, the rental slowdown brings some welcome relief. With rental growth easing, tenants may find it easier to manage their budgets and save for a home deposit. However, it’s worth noting that the market still favours landlords, and competition for quality rental properties remains fierce in many areas.

What This Means for Investors

For property investors, the current trends highlight the need for a balanced approach. While rents are expected to keep rising, the pace of growth will likely be slower than in recent years. This means investors should carefully consider their rental pricing strategies and work closely with their property managers to understand what tenants in their local market are willing to pay.

Additionally, investors should keep an eye on broader economic factors, such as interest rates and inflation, which could influence rental demand and property values in the coming years.


First Home Buyer Grants: Your Ticket to Homeownership

Breaking into the property market can feel overwhelming, but first home buyer grants and assistance programs are making it more accessible than ever.

Federal Government Initiatives

The federal government offers two key initiatives to help first home buyers:

  1. First Home Guarantee Scheme: This program allows eligible buyers to purchase a property with just a 5% deposit, without needing to pay lender’s mortgage insurance (LMI).
  2. Regional First Home Buyer Guarantee: Similar to the First Home Guarantee, this scheme is tailored for buyers purchasing property in regional areas.

Later this year, the Help to Buy Scheme Australia is expected to launch. This shared-equity scheme will enable buyers to reduce their upfront costs to as little as 60% of the property price, with the government holding up to a 40% stake.

State-Based Incentives

State governments are also stepping up with their own incentives, making it easier for first home buyers to enter the market. Here’s a breakdown of what’s available:

  • New South Wales: a $10,000 first home buyer grant and stamp duty discounts for purchases up to $1 million
  • Victoria: a $10,000 grant and duty discounts for up to $750,000
  • Queensland: a $30,000 grant and duty discounts for up to $800,000
  • Western Australia: a $10,000 grant and duty discounts for up to $600,000
  • South Australia: a $15,000 grant and duty discounts for up to $700,000
  • Tasmania: a $10,000 grant and duty discounts for up to $750,000
  • ACT: a duty discount for all purchases.
  • Northern Territory: A generous $50,000 grant.

These incentives, combined with historically low interest rates, make now an excellent time to explore your options as a first home buyer.

First home buyer grants in 2025

Is It Time to Refinance? Five Signs to Watch For

Refinancing your mortgage can be a smart financial move, but how do you know when it’s the right time? Here are five signs it might be time to consider refinancing:

  1. Interest Rates Have Dropped: If current rates are significantly lower than when you took out your loan, refinancing could save you thousands.
  2. Your Financial Situation Has Improved: A higher income or better credit score could qualify you for a better loan.
  3. You Want to Consolidate Debt: Refinancing can help you roll high-interest debts into your mortgage, simplifying your finances.
  4. You’re Nearing the End of a Fixed-Rate Term: Refinancing before your fixed-rate term ends can help you secure a better deal.
  5. You Need More Flexibility: Switching to a loan with features like an offset account or redraw facility can give you more control over your finances.

If any of these signs apply to you, it’s worth exploring your refinancing options.

Is 2025 the Right Time to Buy?

With predictions pointing to a buyer’s market in 2025, now might be the perfect time to start planning your property purchase. A buyer’s market typically means more properties available, less competition, and potentially lower prices—ideal conditions for first home buyers and investors alike.

However, it’s important to remember that market conditions can change quickly. Staying informed about property market trends, interest rates, and government incentives will help you make the best decision for your circumstances.

We are currently ranked in the top 10 brokers list on Ourtop10.com.au. If you’re ready to take the next step, contact us today on startnow@sorenfinancial.com to explore your options and secure pre-approval for a home loan. If you would like to see what your repayments are, use our borrowing calculator here.

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