The dream of owning a home in Australia has felt out of reach for many in recent years. Rising prices, high interest rates, and tight lending rules have created serious challenges for first home buyers.
But in 2025, the landscape is changing — and it may be shifting in your favour. 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, there’s a unique opportunity emerging for those ready to take their first step onto the property ladder.
Whether you’re in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, or Darwin, the current market conditions could make buying your first home more achievable than it’s been in years.
Why 2025 Could Be the Year to Buy
1. Falling Interest Rates
BOQ’s move has intensified a lender rate war:
- 18 lenders now have fixed rates under 5%
- NAB and ANZ both offer two-year fixed rates at 5.19%, the lowest among the big four
- An RBA rate cut could see over 30 lenders with variable rates below 5.25%
Lower rates mean smaller repayments and better borrowing power — two key advantages for first home buyers.
2. Government Incentives Are Still Available
Many states and territories still offer:
- First Home Guarantee (purchase with as little as 5% deposit, no LMI)
- Stamp duty concessions
- First home owner grants for new builds
A broker can help you combine these incentives with a competitive home loan for maximum benefit.
3. Less Competition from Investors
High rates in recent years have pushed some investors to the sidelines, giving first home buyers more breathing room in the market — particularly in capital city entry-level suburbs.
The First Home Buyer Process in 2025
- Get Pre-Approval – Know exactly what you can afford before you start house-hunting.
- Research Locations – Consider emerging suburbs in Brisbane, Adelaide, and Perth for value growth.
- Secure a Competitive Loan – Compare fixed, variable, and split loans across 50+ lenders.
- Leverage Grants and Concessions – Apply early to ensure you don’t miss out.
- Settle and Move In – Your broker handles the paperwork while you focus on your big move.
Capital City Insights for First Home Buyers
- Sydney: Use grants to offset high entry prices — brokers can help maximise your borrowing power.
- Melbourne: Strong competition between lenders = more bargaining power for you.
- Brisbane: Attractive to first home buyers thanks to affordability and lifestyle appeal.
- Perth: Growth potential makes it a smart investment as well as a home.
- Adelaide: Affordable pricing improves serviceability for single and couple buyers.
- Hobart: Smaller market, but well-priced homes still available in outer suburbs.
- Canberra: Public sector stability can improve approval odds.
- Darwin: Consider regional lending options for competitive rates.
How a Broker Can Maximise Your First Home Buyer Advantage
Mortgage brokers don’t just compare rates — they:
- Identify lenders with flexible policies for first-time buyers
- Negotiate rates, fees, and cashback offers on your behalf
- Assist with grant and concession applications
- Structure loans for long-term financial flexibility
Rate Impact Example
On a $500,000 loan over 30 years:
- At 6%, repayments are around $2,998/month
- At 4.89%, repayments drop to $2,652/month
That’s a saving of $346 every month — or over $4,100 per year.
Case Study: Ella in Melbourne
“I’d been renting for years and thought buying in Melbourne was impossible. My broker found me a rate under 5%, helped me access the First Home Guarantee, and now I’m in my own place with repayments I can manage.”
Why Waiting Could Cost You
The combination of rate cuts, grants, and lower competition won’t last forever. If property prices rise again as buyer confidence returns, today’s affordable options could be out of reach within months.
📅 Book Your Free, No-Obligation Chat
If you’re a first home buyer in 2025, now is your chance to get ahead of the curve. Let Money Tree Mortgage Brokers guide you from application to keys in hand.
