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Latest Home Loan Rates & Key Drivers of Suburb Price Growth

Best Rates

Refinancing home loan: best rates January 2025
Interest rates below as at: 1 Feb 2025
 
This could (hopefully 🙏) be out of date within a few weeks!
 
Interestingly, there has been a slight downward movement in all rates over the past few months so watch out if the Reserve Bank of Australia (RBA) steps in and announces a reduction in the cash rate. (For the nerds, the cash rate is the interest rate that banks pay to borrow money from other banks overnight).
 
Please note: these rates exclude clean energy rates, first home buyer rates and packages and construction loan rates and an Offset feature (where applicable).

Owner Occupiers

Principal and Interest
  • Fixed Rates: from 5.55% pa – 2 and 3 year terms
  • Variable Rates: from 5.78% pa (excluding ‘clean energy’ loans)
Interest Only
  • Fixed Rates: from 5.85% pa – 2 and 3 year terms
  • Variable Rates: from 6.39% pa

Investors

Principal and Interest
  • Fixed Rates: from 5.69% pa – 2 and 3 year terms
  • Variable Rates: from 6.18% pa
Interest Only
  • Fixed Rates: from 5.85% pa – 2 and 3 year terms
  • Variable Rates: from 6.34% pa

The six key factors which help suburb prices increase

Refinancing home loan: Suburb prices increase

Courtesy of Live Wire Markets, I have summarised an interesting article from their Blog. To get the full article, you can click here: six key factors which help suburb prices increase

1. Population Growth and Demographics
Strong population growth is a reliable indicator of suburb potential. Cities like Brisbane, Perth, Sunshine Coast, and Gold Coast saw significant price rises due to migration. Look beyond headline growth to understand demographic shifts and potential land releases affecting demand.
2. Infrastructure Development
Investment in infrastructure—new highways, railways, or commercial hubs—boosts connectivity and attracts buyers. Check government plans and local announcements to spot upcoming hotspots, like suburbs near new transport links.
3. Tight Rental Markets
Suburbs with low vacancy rates offer strong investment potential. Coastal and lifestyle areas continue to experience high demand post-COVID. Use data from CoreLogic, SQM Research, or REA and Domain to identify tight rental markets.
4. Economic Diversification
Suburbs reliant on multiple industries (education, health, technology) are more stable than those dependent on one sector (e.g., mining towns). Review city plans for new developments that signal long-term growth potential.
5. Gentrification and Lifestyle Appeal
Areas like Northcote and Thornbury in Melbourne exemplify gentrification’s impact on property values. Lifestyle factors, especially proximity to water, drive demand in suburbs like Gold Coast.
6. Identifying ‘Forever Suburbs’
Some suburbs attract high-income earners due to unique appeal—top schools, proximity to CBD, or vibrant culture. These “forever suburbs” see low turnover and strong long-term price appreciation.

Tip: use a buyer advocate to do the hard research yards.

Some of you have the expertise and experience to research the above data trends, but for some of you, it might be overwhelming.
 
If that is the case, consider using a buyer or property investment advisor advocate.
 
As a subscriber to our newsletter, you have access to our in-house Property Concierge service run by Trish Moore, Hidden Gems Property Scouts which is a free service. Just email me and I can put you in touch with Trish.
 
And if you want the details of some of the advocates other than Trisk, including the good folk at Performance Property, just ask me, and I will be happy to make an introduction or give you a shortlist for your consideration.
 
Please note: we do not earn any fees or commissions from these referrals unless otherwise advised to you in writing.

Quick Guide To First Home Buyer Incentives

Refinancing home loan: Quick Guide To First Home Buyer Incentives

First Home Buyer Assistance Explained

As a first home buyer, you have access to various government assistance schemes to help you purchase your property

State and Territory Grants

Most states and territories (excluding the ACT) offer grants for first home buyers, ranging from $10,000 in several states to up to $50,000 in the Northern Territory. These grants are available to owner-occupiers and may apply to both new and established homes, depending on your location. Income and property price caps may also affect eligibility.

Stamp Duty Concessions

With the exception of the Northern Territory, all states and territories provide stamp duty concessions for first home buyers. These concessions range from complete exemptions to partial discounts, depending on where you purchase and specific conditions.

Federal Government Schemes

Additionally, the federal government offers several assistance schemes tailored for first home buyers.
 
Under the First Home Guarantee and Regional First Home Buyer Guarantee, eligible first home buyers can enter the market with just a 5% deposit, without having to pay lenders mortgage insurance. Income and property price caps apply
 
Also, another scheme, called Help to Buy, is expected to go live later this year. Help to Buy is a shared-equity scheme in which the government will acquire a stake of up to 40% for a new home and up to 30% for an established home, thereby reducing the buyer’s contribution to as little as 60-70% of the purchase price.
Click on the official websites below for more information.
Source: NSWVIC one, twoQLD one, twoWA one, twoSA one, twoTAS one, twoACT one, two, three, four, fiveNT

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