Hope the lead up to the end of the financial year was a good one – a cold and wet one for many of us, no doubt, but hopefully, a financially rewarding one.
Ok, one last time (until the next rate decrease!)
Does your loan rate start with a 5, and does it land below 5.8%?
If not, you might be paying your lender too much out of your own pocket.
Whether you ring your local branch manager, your current broker or reach out to us here at BIR Finance.
Get a rate check!
Vigilance is key when it comes to lenders and their ‘best rates.’
Apart from making sure you are getting a great rate, let’s take a look at what we have in store for you this month:
- Best interest rates – Owner Occupiers and Investors
- Momentum builds as property prices continue climbing
- What the average home costs – and why your loan might not be average
- Beat the tax-time rush – four easy steps
- How to prepare for a spring sale
- Construction credit risk in 2025 – five red flags lenders now watch
- Be covered, not just insured (Plus Bunmi’s Top 10 tips for business owners)
- In the spotlight – Ravenhall Group – electrical contractors
- Advertising – an industry in constant change
- Procrastinate no more – 7 tips
- From mortgage fit to body fit
- 3 money pearls of wisdom from Warren Buffett (and friends)
- ChatGPT continues to astound
Read more below.
Best Interest Rates
The interest rates below are current as at 29 June 2025.
A quick summary:
- The most recent RBA Cash Rate change was the 0.25% decrease in February 2025 and a further 0.25% in May.
- The lowest variable rates reflect the latest RBA cash rate reduction.
- All lenders on our panel have now reduced their rates.
- The RBA has flagged that inflation is likely to stay in the range of 2% to 3%.
- If inflation stays in this band, further rate reductions are likely.
What’s excluded from our interest rates analysis:
- Clean energy rates (unless quoted) > first home buyer rates > packages > construction loan rates > offset account feature.
Loan assumptions:
- 30 year loan with a Loan to Value Ratio (LVR) of less than 60%.
- Interest Only rates are based upon an Interest Only period of 1 year.
- Fees and charges are excluded from consideration.
- Changes reflect changes from the prior month
Owner Occupiers
Principal and Interest:
- Variable Rates: from 5.49% pa; no change
- Fixed Rates: from 5.09% pa – 2 & 3 years; down by 0.01%
- Clean energy loans:
- Variable Rates from 5.18% pa; no change
- Fixed Rates from 4.94% pa; no change
Interest Only:
- Variable Rates: from 5.69% pa; up by 0.05%
- Fixed Rates: from 5.35% pa – 2 & 3 years; down by 0.39%
Investors
Principal and Interest:
- Variable Rates: from 5.69% pa; up by 0.15%
- Fixed Rates: from 5.19% pa 2 & 3 years; down by 0.15%
- Clean energy loans:
- Variable Rates from 5.34% pa; up by 0.3%
- Fixed Rate loans from 5.14% pa 3 years; up by 0.20%
Interest Only:
- Variable Rates: from 5.89% pa; up by 0.05%
- Fixed Rates: from 5.29% pa – 2 & 3 years; down 0.05%
Momentum Builds As Property Prices Continue Climbing
Australia’s median dwelling value rose 0.5 % in May, rounding out a 1.7 % lift since February. Research firm Cotality (formerly CoreLogic), says almost every capital city posted gains, reversing the small decline recorded over summer.
“The continued momentum we’re seeing across almost all markets is no doubt being fuelled by rate cuts – both those that have already happened, but also potential cuts in the coming months.” — Tim Lawless, Cotality Research Director
“With interest rates falling again in May, we are likely to see a further positive influence flowing through to housing values in June and through the rest of the year.” CoreLogic.
Why this matters for buyers
In a rising market, speed equals savings. Securing finance early can trim thousands—sometimes tens of thousands—of dollars off the eventual purchase price.
Next steps
Lock in your pre-approval – giving you a spending limit and stronger bargaining power.
Start your property search – confident you can act the moment the right property appears.
What The Leverage Home Costs - And Why Your Loan Might Not Be Average
House prices
The latest Australian Bureau of Statistics release reports a mean national dwelling price of $1,002,500 – the first time the figure has exceeded seven digits.
Here is a graph by State of the median home prices from 2010 to 2022 (courtesy of Christine Theophilos, a Property Strategist with PropertyInvestors.
This graph cuts off a bit earlier than 2025 so the numbers are not quite reflective of the above current position – but the growth is quite staggering, particularly New South Wales.
Home Loans
Sourced from the ABS databank, Money.com.au reports that the average new owner-occupier mortgage is $659,922, with repayments of about $3,957 a month on a 30-year term at 6.00 % p.a.
Luckily this data is a few months old as this ‘average interest rate’ is very high compared to the current best rates (around the mid 5’s).
But “average” hides a lot of wiggle room.
For example, this doesn’t take into account any funds in Offset accounts. As regular readers would know, I am a big fan of properly structured and set up Offset accounts to reduce the interest expense on your loan repayments.
If you need to do a quick audit of your current home loan structure
just reach out for a quick chat.
The States Vs the National averages
Best shown graphically – see below.
3 big reasons your home loan could look very different to the average
#1: Lender choice = borrowing power
aka – all lenders are not the same and lenders vary over time
Assessment buffers, debt-to-income caps and allowable living-expense models vary – sometimes by large amounts.
Switching lenders can lift borrowing limits by tens of thousands – which might bridge the gap.
Real story: a new home buyer came to me after they got declined for a $650K loan with a major lender whilst another major lender offered the couple a loan of $900K – an extreme example but it shows what is possible.
#2: Deposit pathways
- 20 %: avoids LMI but takes longer to save.
- Less than 20% deposit but no LMI if you are in certain professions
- Less than 20% with LMI but LMI capitalised and paid off with the loan
- 5 % (or less): possible via the Federal Home Guarantee or a family guarantor.
- Full doc lenders tend to have a greater appetite for lower deposits than lo doc lenders
- Guarantees, gifts, sale of surplus assets can all be used to increase the value of your deposit.
#3: Product mix & flexibility
About 32,000 Australians refinance each month and one-in-five new loans start as interest-only – proof that rate hunting and structure tweaks can save serious cash.
However, as reported in realestate.com.au, 70% of borrowers are either undecided about refinancing or they are waiting for further rate reductions. Both strategies could be costing them thousands of dollars.
It is a known reality that as with many financial services in loans, telcos and insurance being three of the main culprits, there is often a loyalty tax where the supplier provides a better rate to a new customer, leaving the existing customers on higher rates. Take it as read that you have been warned ‘👋
Average loan sizes
The bottom line
Averages make catchy headlines, not borrowing strategies. The right lender, deposit plan and repayment structure are personal – and that’s where we can help.
With 30 June fast approaching – damn, it’s gone!; now’s the moment to pull your paperwork together and set yourself up for a smooth 2024-25 return.
And if you read to the end, you will also get two special tips from tax-guru Swati Gupta, IX Advisory. Swati loves her property tax law so this is something at which she excels – she makes sure she understands the nitty gritty (better her than me I say).
1. Gather the essentials
Pay slips or income statements, private health insurance details, receipts for deductible expenses, and investment records (dividends, interest, crypto gains).
One suggestion is to load up your receipts once a week to a cloud storage folder – your accountant might even have some ideas to save you and them time (less time = less money or more value).
2. Hunt for deductions
Working from home? Charitable donations? Car kilometres for work? Small costs add up—and every dollar claimed cuts your taxable income.
3. Check your myGov details
Make sure your address, email and bank account inside myGov are current so the ATO can issue any refund without delay.
4. Call your accountant (or ask us for a referral)
A registered tax agent can spot deductions you might miss and lodge on your behalf, buying you extra time past the 31 October deadline if needed.
Getting organised early means fewer surprises, a better shot at a refund and a clear runway to focus on bigger financial goals—like paying down your mortgage or planning an investment purchase.
Need a savvy accountant or want to channel any refund into your loan?
I can make an introduction for you to some great professionals.
Talking of a savvy accountant, Swati Gupta has given me the following additional tips for lodging your return the smart way:
1. Hold off lodging until 31 July
Employers have until 15 July to give the ATO your final pay and tax details. Waiting lets the ATO pre-fill your income, making assessment faster and reducing errors.
2. Claiming personal super? Send the notice first.
To deduct personal super contributions you must lodge a “Notice of Intent” with your super fund and receive their written acknowledgement before you file your tax return.
Include the form acknowledgement letter that you receive from your superfund in the bundle of docs you send your accountant. No acknowledgment = no deduction.
If you would like to ask Swati about life and tax,
let me know and I will get her to give you a call.
How To Prepare For A Spring Sale?
(and lift your price by up to 20%)
Spring is open-home season in Australia: blossom on the trees, gardens in full colour and buyers keen to seal a deal before Christmas. The secret to capitalising on that energy is to start now, in winter.
Your winter action list
Declutter & deep-clean.
A spotless, neutral space lets buyers picture their own life in the home. Realestate.com.au reports that a thorough deep clean and declutter can boost sale price by 5-20 %.
Minor repairs. Leaky taps?
Chipped paint? Fix them. Small flaws can make buyers wonder about bigger ones.
Chat to local agents.
Good agents will advise on timing, pricing and presentation months before you list.
Talk to your broker.
Knowing your borrowing limit early lets you decide whether to buy first or sell first—and negotiate confidently on your next place.
“When a home looks clean and well cared for,
buyers see it as move-in ready and are often willing to pay more.”
Justine Wilson, Vault Interiors.
Why starting early pays off
Getting the grunt work done in winter means you can launch a polished campaign the moment September rolls around—just as buyer competition peaks. A well-staged, squeaky-clean home not only photographs better but can add tens (or even hundreds) of thousands of dollars to your final price tag. realestate.com.au
Next steps
Do you need a referral to someone who can assist you? Just let me know, as I have a couple of local Melbourne firms who will help you get ready – from odd jobs to the full kitchen and bathroom reno.
Yep, we are missing a red flag – but that’s not the fifth red flag I was going to talk about.
As reported by Jeanine Purdie, in her Business Credit Solutions June newsletter.
1. Insolvency remains one in four
AICM/Equifax data show construction still accounts for 25 % of all company collapses, with exits sitting 28 % above the long-run norm.
Lender watch: Small builders (< $10 m turnover) are the danger zone. Over-ambitious draw downs are a warning sign of a builder under stress.
2. Cash reserves are thin
Across failed contractors, more than 63 % owed > $100 k in unpaid tax and had chewed through working capital months before administrators moved in.
Lender watch: inadequate working capital and lack of detailed budgets to support the cashflow journey.
3. Margin squeeze is back
Material costs are 60 % higher than a decade ago, but tender prices haven’t caught up. Profit margins for residential builders are still the lowest of any construction segment.
Lender watch: are contracts fixed price and if not, what options are there for costs to increase?
4. State hot-spots
FY-25 YTD insolvencies jumped 79 % in NSW and 46 % in WA. Victoria has slowed, but numbers are still 10 % up on last year.
Lender watch: this is a lag indicator so most States will be under watch right now.
5. Ratings rule the money tap
Lenders have responded: 82 % now do deeper due-diligence and 43 % of loan bids are declined when builders can’t provide an acceptable rating. Expect funding to be faster (and cheaper) when your builder carries a recognised score like Equifax iCIRT.
Lender watch: they will do their research online – so you need to do this first.
How we can help
- We work with you to make sure your loan gets approved first time.
- We provide you with lender checklists of what you need to do for the lender you choose – so no surprises.
For most of us, we turn to insurance and insurance policies when we are having a bout of insomnia. But stay with me here. What I am about to say may save your financial fortune.
But first, let me introduce you to Bunmi Ajayi, the owner of Megalines Insurance and Risk Advisors.
Bunmi is an interesting dude.
He grew up in Nigeria. After making Australia home, he obtained a Masters of Commercial Law from Deakin University. He is also an Associate of the Chartered Insurance Institute of London UK as well as a Fellow of the Australian and New Zealand Institute of Insurance and Finance. And, he has been named Australian Insurance Broker of the year in 2015 – nice one!
So, you can say he takes insurance seriously.
He even travels to Lloyds of London to get special insurance policies written for particular client risks.
He wrote a short book – Be covered, not just insured. Designed to assist small business owners in ensuring they obtain the right policies for their business, it offers valuable insights into the world—and pitfalls—of insurance.
Here are the Top Ten pointers from his book, courtesy of the team at ChatGPT (yep, it read a pdf of the book and gave me the list below in 2 minutes – quite remarkable).
#1 Risk is predictable – but only if you measure it
Bunmi compares risk to a “rhythm” that can be timed and managed; insurance is the most sophisticated tool for transferring that risk away from the business so it can keep trading when the beat changes.
#2 Why most small businesses fail after a loss
72 % of Australian businesses that suffer a major, uninsured event – fire, theft, fraud, cyber-attack, natural peril – close their doors permanently because cash-flow stops while costs keep rolling in.
#3 A policy is a contract, not a commodity
The five parts of every policy (Declarations, Insuring clause, Conditions, Exclusions, Endorsements) mean wording matters more than price; one misplaced exclusion can void a claim.
#4 Choose expertise over price when picking cover
Case studies show brokers who misunderstood new exclusions or failed to add a client as a named insured left businesses with denied claims and heavy legal bills. A professional broker’s technical knowledge, market reach and claims advocacy are the first lines of defence.
#5 Match cover to your operations – one size never fits all
Bunmi maps 11 core sections in a Business Package (Fire & Defined Events, Business Interruption, Liability, Cyber, Management Liability, etc.). Each enterprise needs a tailored mix; even two cafés on different streets face different burglary or flood profiles.
#6 Insure the downtime, not just the bricks and mortar
Business-interruption insurance is “income protection for a company”; without it, a surviving building can still see a business fail while turnover is rebuilding. Yet only one in four small firms buys it.
#7 Cyber is now a mainstream peril, not a tech problem
Real-world payouts for ransomware, data-breach notification and lost online revenue underline that cyber insurance belongs alongside fire and theft on the cover checklist.
#8 Regulators, contracts and customers all expect diligence
From mandatory workers’ compensation and CTP to contractual requirements for public & product liability, being correctly insured is part of licence to operate – and uninsured gaps can breach directors’ duties.
#9 Future-proofing means blending people and technology
Millennials now own one in five SMEs and expect digital self-service backed by human advice. Brokers who combine online access with personal risk analysis deliver the resilience modern businesses demand.
#10 Start with “Why?” – then insure the “How” and “What”
Bunmi adapts Simon Sinek’s Golden-Circle: businesses buy security, not paperwork. Insurance arranged around the owner’s goals and values secures that purpose when the unexpected strikes.
If you would like a copy of Bunmi’s book
or you would like to have a chat with Bunmi,
just let me know and I will get Bunmi to reach out to you.
Electrical contractors - with a difference
I recently heard Daniel Brne, owner of Ravenhall Group, present at a business meeting.
Starting life as ‘just an electrician’, Daniel’s business is now incredibly sophisticated – with an incredible value-add focus on security and data connectivity for businesses operating throughout Australia.
Ravenhall Group offers a comprehensive range of electrical services for large-scale, multi-story buildings and infrastructure projects, including schools and high-security medical centres (with seismic detectors in a concrete storage vault!).
Their services include:
- Installations, upgrades, and repairs of electrical systems, as well as safety audits and switchboard installations.
- Robust data and fibre optic infrastructure solutions to ensure future-ready buildings.
- Advanced security technology tailored to the specific needs of each project, including access control systems.
- Commercial site AV systems.
And all with a focus on safety and compliance.
Like an introduction to Daniel?
Just let me know and I will make the connection for you.
Advertising - an industry in constant change
I recently attended a fascinating presentation by Ben Willee, the head honcho at Spinach, a full-service advertising agency (every agency has a head honcho!).
Ben’s presentation to The Executive Hub group I am part of (run by Suzanne Murphy), was a very detailed presentation, and it covered a lot of interesting aspects of the advertising industry.
Here is a quick summary.
Key takeaways for marketers
Keep some budget flexible – monthly spend swings mean agile re-allocation wins.
Follow the eyeballs – digital keeps growing, but outdoor and audio deliver fresh scale.
Own your first-party data – the retail giants are stepping into the traditional agency space, using their purchasing power to grab another component of the supply channel. Giving them control of your advertising spend can be the devil in disguise.
Fight for attention seconds – data suggests 2.5 seconds is the minimum you need, but with 10 seconds, your results will skyrocket. Translation: thumb-stopping creative and viewable inventory matter more than ever, so prioritise placements that guarantee viewability and creative that earns a pause.
Balance long and short – make brand building the default, with tactical bursts layered on top. The “Connections Funnel” approach pairs high-reach channels (TV, BVOD, radio, podcasts) with lower-funnel, conversion-focused media (SEM, social retargeting) to cover the full customer journey
Invest in great ideas – creative excellence is still the single biggest sales lever you control. The message is clear: even the smartest media plan which focuses on targeting, reach and recency, can’t fix dull ads.
Show me the money
Marketing spends can be pricey and the dollars quickly add up. That’s where a good working capital loan facility can work wonders, allowing you to spread the cashflow load over a few months rather than pay for it all up front.
Procrastinate no more!
I procrastinate. So do you. I want to do better. And so, I’ll bet, do you.
In Daniel Pink’s just-released 10-minute video, he walks through seven tools backed by science (and tested on himself) that can help you slay the procrastination dragon.
Too busy for a radical fitness overhaul? London GP Dr Simon Doyle proves you don’t need one.
Sidelined for a year by a shoulder injury, he cut his body-fat from 19 % to 10 % in just three months by ditching body-part splits for brisk full-body workouts, using supersets to finish sessions in under 50 minutes, and tightening portion sizes to hit a 138 g daily protein goal. Progressive overload (adding weight whenever he hit 12 reps) fuelled muscle gains, while flexible meal prep left room for weekend treats.
His takeaway: smart structure and consistency beat marathon gym sessions and crash diets every time.
Read the full routine and meal plan here: Get fit plan.
Three pearls of wisdom from Warren
#1 Choose who you hang out with – it matters: read about your friends & partner here. Including…. your partner! People with relatively prudent and reliable partners tend to perform better at work, earning more promotions, making more money, and feeling more satisfied with their jobs.
#2 The one word for success used by Warren and Bill Gates – FOCUS: read about focus here. Bill said ‘What you obsess over between the ages of 13 and 18 is likely where you’ll be world-class.” I should have stuck with … nahh – no need to share 😉
#3 The accumulation of the first $100,000 is the hardest – and most important part: read about ‘the first $100K’ here. So said Charlie Munger, Warren’s right hand man. Frugality, discipline, and patience are essential to getting to that threshold. Once you reach that critical threshold, compounding accelerates wealth growth.
Need to get started on your wealth journey?
We recommend you sit down with a financial planner, and if you are into property for your future growth in wealth, an investment property advisor.
And if you need an introduction, just let me know. I have a number of experienced and professional advisors in both these areas. And I can share with you a few alternatives – aka, we offer you options and you choose!
My Chrome feed gives me so much on ChatGPT (you open one article and wham! They come at you from everywhere!).
Nevertheless, looking at these examples is fascinating. Is ChatGPT perfect? No, not perfect, but the progress has been quite startling and the reporting is coming in from esteemed publication sources. Remember, ChatGPT only hit the headlines a few short years ago. You’ll see there is a theme for those who need to make money!
How to Ask Questions Using AI Chatbots: Nothing too startling here but it is a useful reminder.
Using the RISEN format for AI prompts – I was provided with this tool during a webinar on using ChatGPT to improve your productivity. And, I used it to reduce the time I take to write this newsletter!
7 ChatGPT prompts I wish I had know about earlier: I particularly liked #5 – Decipher hard to read handwriting. Just a few short years ago (ahhh, slightly over 25 years ago), I would have answered ‘Hire Melissa’ – she was my go-to word processing guru who could read my worst and most confusing inserts into reports for my MBA assignments.
11 Prompts to power up your ‘at work’ productivity: I particularly like the ‘summarise a long document’. I even use this type of prompt to produce some of the articles for this newsletter! But others may find greater comfort with ‘You need to send a polite but firm email’!
I let ChatGPT review my investment strategy: I am not sure financial planners would like this one but having said that, it often works in the opposite way than what you would expect. For example, copywriters use ChatGPT to give them the ‘low hanging fruit’ AND THEN they apply their expertise – a smart use of AI so there is no reason financial planners wouldn’t consider doing the same.
I replaced my notes app with ChatGPT: I find it interesting when apps I commonly use are now being considered to be replaceable by AI. I am probably not quite ready for this one yet but it is an interesting development.
How to use ChatGPT prompts to make $100 per day in 2025 OR, perhaps you would like to use AI to obtain a six-figure passive income stream! Either would be nice. 😆
