For years, first home buyers across Australia have faced rising property prices, climbing interest rates, and fierce competition from investors. But the tide may be turning.
With Bank of Queensland (BOQ) slashing its two-year fixed rate to 4.89% and the Reserve Bank of Australia (RBA) expected to cut the cash rate, opportunities for first-time buyers are opening up.
If you’re in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, or Darwin, now could be the moment to secure your first home loan with a rate that locks in affordability for years to come.
Why Fixed Rates Under 5% Are a Game-Changer
Just months ago, fixed rates starting with a “4” were rare. Now:
- BOQ’s 4.89% two-year fixed rate is the sharpest standard rate in the market for eligible owner-occupiers
- NAB and ANZ both have two-year fixed rates at 5.19%, the lowest among the big four
- 18 lenders have at least one fixed rate under 5%
- If the RBA cuts the cash rate, more lenders are expected to follow suit
For first home buyers, this means lower repayments, easier budgeting, and a stronger case for loan approval.
The Benefits of Locking in Now
- Repayment Certainty – A fixed rate gives you a predictable repayment schedule for your first years as a homeowner.
- Shield from Rate Hikes – If rates rise again, you won’t be affected during your fixed term.
- Negotiation Power – Brokers can leverage lender competition to secure additional incentives, like reduced fees or cashback offers.
Understanding the First Home Buyer Journey
Buying your first property is exciting — but it’s also complex. A mortgage broker can help you navigate:
- Government incentives like the First Home Guarantee and stamp duty concessions
- Deposit requirements and whether you qualify with less than 20% down
- Lender eligibility criteria for first home buyers
- Choosing between fixed, variable, or split loans
City-by-City First Home Buyer Insights
- Sydney: High prices mean a bigger deposit is key, but incentives can help bridge the gap.
- Melbourne: Fierce lender competition makes this a great time to compare rates.
- Brisbane: Affordable suburbs are still within reach for first home buyers.
- Perth: Strong market growth may boost your equity quickly.
- Adelaide: Lower median house prices improve serviceability.
- Hobart: Slower price growth means less pressure on entry-level buyers.
- Canberra: Public sector incomes can improve borrowing power.
- Darwin: Regional lending options can help secure a competitive deal.
The Role of a Mortgage Broker
A broker can:
- Compare 50+ lenders to find the best rate for your situation
- Help with government grant applications
- Structure your loan to suit your lifestyle and goals
- Negotiate directly with banks to save you time and stress
The Current Rate Landscape
BOQ’s recent move to 4.89% has sparked a rate war, and if the RBA cuts rates, more lenders will join the sub-5% club. For a $500,000 loan, locking in a rate under 5% could save you thousands over your fixed term compared to rates above 6%.
Case Study: Jake and Mia in Brisbane
“As first home buyers, we didn’t think we could afford a home in our preferred suburb. Our broker found us a fixed rate under 5% and helped us access the First Home Guarantee. We’re now in our new home with repayments we can comfortably manage.”
Why Timing Matters
Markets move quickly. Waiting too long could mean:
- Missing the lowest rates available today
- Facing higher property prices if demand surges
- Losing access to limited government incentives
📅 Book Your Free, No-Obligation Chat
First home buyers have more opportunities now than they’ve had in years — but you need the right advice to make the most of them. Let Money Tree Mortgage Brokers help you compare, apply, and move into your first home sooner.
