Hey everyone, Leigh here with your daily dose of what’s happening in the Aussie property and home loan space. Whether you’re house-hunting, investing, or just keeping an eye on the market, here’s what you need to know today.
🏡 Property Prices Hit New Peaks
CoreLogic’s latest data shows Aussie property prices rose 0.4% in March, marking the second month of growth and pushing national home values to record highs. That’s despite earlier dips and ongoing affordability issues.
📍 Sydney and Melbourne are bouncing back, though still just below their previous peaks.
🌄 Regional areas are killing it — outperforming the big capitals thanks to more affordable housing and lifestyle appeal.
💡 Over the past five years, the median home value is up $230,000 — a massive 39.1% increase. Great news for owners. Not so great for first-time buyers battling the value-to-income ratio squeeze.
🏦 Big Changes in Home Loan Land
✅ Commonwealth Bank’s New HECS Rule
From today, CommBank is no longer factoring in HECS debt that’s due within 12 months when assessing borrowing capacity. And for HECS due in 2–5 years, they’ve cut the buffer rate from 3%.
Translation: If you’ve got student debt, you might be able to borrow more now. Game-changer for young buyers.
🏛️ Coalition’s Plan to Loosen Lending Rules
If elected, the Coalition wants to reduce APRA’s 3% serviceability buffer. Critics reckon the current buffer’s a bit much and is locking people out of the market.
Potential impact: Easier access to finance, but some economists are waving the risk flag. Time will tell.
🧨 Controversial Proposal from the Greens
Greens leader Adam Bandt wants to:
- ❌ Axe negative gearing (for anyone with more than 1 investment property)
- 🚫 Ditch capital gains tax discounts beyond the first investment property
- 🧊 Freeze rents nationally (2% cap every two years)
If passed (big if), this would radically change the investment landscape. Investors — take note.
🇺🇸 US Tariffs Could Push Aussie Rates Down?
Economists are predicting global slowdown from new U.S. tariff policies. That could lead the RBA to cut rates again this year to stimulate the economy.
🏡 If that happens:
- Mortgage repayments could drop
- Borrowing capacity could jump
- Property prices might rise even further — especially where supply is tight
🔍 Quick Market Snapshot:
- 📈 National values: Up 0.4% in March
- 🏙️ Sydney & Melbourne: Recovering but not at peak
- 🌆 Regional areas: Outperforming capitals
- 📉 Affordability: Still a massive issue
- 💼 Jobs growth slowing: Might cool spending
- 🏗️ Construction costs high: Limiting new housing supply
- 🔮 Outlook: Steady growth, possible rate cuts, cautious optimism
Final Thought
The market’s heating up, lending rules are shifting, and there’s plenty of noise from politicians. Whether you’re looking to buy your first home, refinance, or invest smarter — it’s more important than ever to have someone in your corner who knows how to navigate the landscape.
See you tomorrow for another update.
— Leigh
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