RBA holds interest rates, as the Government throws lifeline to First Home buyers.
- Lilly Mackay
- Sep 30
- 2 min read
No surprise that the Reserve Bank of Australia holds interest rates.
What does this mean for First Home Buyers?
With the market in wait-and-see mode for further drops, there’s no immediate change to borrowing power, but the momentum in the property market is clear thanks to the government’s surprise lifeline for first-home buyers.
In Oliver Hume Property Group’s latest interest rate commentary, Chief Economist Matt Bell says, Property markets have benefited strongly from the three cuts delivered so far.
For first home buyers, here’s what it means:
Stability in repayments: Today’s hold provides confidence that borrowing conditions remain steady for now.
Affordability pressures easing: Earlier cuts this year have already boosted buyer activity and made repayments more manageable.
Stronger demand for townhouses: With affordability attracting buyers thanks to new infrastructure, schools, and community amenities –townhouses are in hot demand.
With a positive outlook ahead, many anticipate further rate cuts in 2025 and 2026 to boost affordability.
Adding to the good news, the federal government has brought forward its surprise lifeline: from October 1, the expanded Home Guarantee Scheme will begin.
What’s new with the Home Guarantee Scheme?
The expanded scheme introduces some major updates designed to make home ownership more accessible:
No place limits: Everyone eligible can now access the scheme, no more annual participant caps.
No income caps: Your income won’t hold you back from applying.
No Lender Mortgage Insurance (LMI): Buy with just a 5% deposit and skip the thousands of dollars usually paid in LMI.
Higher property price caps: More homes will now qualify under the scheme.
Equal access nationwide: Regional and city buyers are on the same playing field.
With only one townhouse available in Stage 2 of Cranbourne East, now is a great time to act! Contact our team today to see if they’re right for you!
Mortgage brokerage services are provided by a related body corporate of MyFirstHome Pty Ltd, MyFirstLoan.au Pty Ltd ACN 168 808 946 (MFL) as a credit representative (Australian credit representative number 564038) of Allied Financial Consulting Pty Limited ACN 059 732 419, which holds Australian Credit Licence number 393845. As a credit representative, MFL is authorised to provide credit services where it is not a credit provider under any credit contract, for example, to act as a broker for loans provided by other credit providers. Loans brokered by MFL are structured and managed by Homestar Finance (which holds Australian Credit Licence 390860), which engages a professional trustee and lender to be the 'lender of record' for its loans. Quoted rates are correct as on publication date.
