Property Archives - Frontrow Financials

Australian home price average tops $1 million

Property values nationally have passed a major milestone with the average home price pushing through the $1 million mark for the first time ever. Have you been putting off buying? If so, here’s how to get the ball rolling.

Despite a cost-of-living crunch and several years of high interest rates, the Australian property market continues to break records.

New figures from the Australian Bureau of Statistics (ABS) show home prices recently passed a key benchmark.

The average home price nationally is now $1,002,500 – the first time it has topped $1 million.

Here’s what it means for home buyers.

Average home prices vary by location

According to the ABS, a 0.7% rise in home prices nationally in the March 2025 quarter helped push the average price over the $1 million threshold.

National numbers don’t always show the full picture though, and average home prices continue to vary widely between states.

New South Wales has Australia’s highest average price of $1,245,900.

That’s followed by Queensland ($944,700) and the ACT ($941,300).

There’s not much separating average home prices in Victoria ($899,700), Western Australia ($874,200) and South Australia ($861,900).

At the other end of the spectrum, Tasmania ($670,200) and the Northern Territory ($517,700) continue to be the more affordable states for housing.

How are home prices likely to move from here?

While the ABS data only extends to the end of March 2025, figures from CoreLogic show home prices have continued to climb higher.

We’re even seeing a recovery in property values in areas such as Darwin, Hobart and Canberra, where price growth has been comparatively low in recent times.

One of the key drivers for all this growth has been lower interest rates, which PropTrack says have improved market sentiment, boosted borrowing power and buoyed buyer confidence.

Why buying now could be a good time

If you’re thinking of buying a home, chances are you’re wondering “will home prices keep rising?”

While it’s impossible to accurately predict the future, the general view appears to be that home prices are set to head higher.

CoreLogic says the recent May rate cut is likely to have a “positive influence on housing values in June and through the rest of the year”.

Meanwhile, the outlook from the team at PropTrack is that we are likely to see further price growth through the remainder of 2025 based on tight housing supply, targeted buyer incentives (such as first home buyer schemes) and population growth.

Talk to us to get the ball rolling on your purchase plans

They say the right time to buy a home is when you’re ready.

But how do you really know when that is?

If you’re interested in finding out, talk to us to understand your borrowing power, and get the ball rolling on a home loan that matches your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

RBA cuts the cash rate for the second time this year to 3.85%

Australian borrowers have received another reprieve with the Reserve Bank of Australia (RBA) today cutting the cash rate by 25 basis points to 3.85%. How much could this decrease your monthly mortgage repayments?

This is the second cash rate cut in 2025, as the RBA attempts to ease cost-of-living pressures on Australian families.

RBA Governor Michele Bullock said in a statement that the Board was satisfied that the risks to inflation had recently become more balanced.

“With inflation expected to remain around target, the Board therefore judged that an easing in monetary policy at this meeting was appropriate,” Governor Bullock said.

How much might your mortgage repayments now decrease?

Unless you’re on a fixed-rate mortgage, hopefully your bank will soon follow the RBA’s lead and decrease the interest rate on your variable home loan.

For an owner-occupier with a 25-year loan of $500,000 paying principal and interest, this month’s 25 basis point rate cut means your monthly repayments could decrease by about $77 a month.

That would put $924 a year back into your household budget.

If you have a $750,000 loan, your monthly repayments will likely decrease by about $115 a month – or $1380 per year.

Meanwhile, a $1 million loan could decrease by about $154 a month – or $1848 a year.

This all assumes that your lender automatically passes on the full 25 basis point cut to your home loan.

Another thing to consider is that not all lenders automatically reduce variable home loan repayment amounts in line with rate cuts.

Some lenders simply maintain your repayment amount at the old level. It’s just that more of your money goes towards paying off the principal (rather than the interest) each month. But you can ask them to reduce your repayments in line with their cuts.

To find out what your lender is doing with your loan, get in touch with us in a few days once the dust has settled.

Feeling the strain of your mortgage? Let’s talk

Even with this latest rate cut, many Australian households are still grappling with living costs and interest rates that are higher than when they first took out their home loan.

If it’s been a while since your last home loan review, now could be a good time to check in. You might be able to improve your situation – and we’re here to help you explore your options.

This could include renegotiating with your current lender, refinancing to another lender, or debt consolidation.

Every household is unique, and we’re committed to helping you find a solution that fits your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Fact or fiction: do property values double every 10 years?

It’s a common belief that real estate values double every decade. But is this true? New research reveals how much home values have increased over the past ten years.

It’s no surprise that something as big as Australia’s $11 trillion housing market has generated its fair share of myths and misconceptions.

Chances are you’ve come across a few yourself – maybe along the lines of ‘great houses sell themselves’, ‘the listing price is non-negotiable’, or ‘you need a 20% deposit to buy a home’.

One comment we often hear wheeled out at social gatherings is that property prices double every 10 years.

But how accurate is this? Here’s the latest research.

How has the property market performed recently?

Looking back over the past year, home values have climbed 3.2% nationally to $825,000, adding about $25,000 in value to the average Aussie home.

Stretching the lens out further, CoreLogic says that in the past five years, property prices have increased 39.1% – an upswing that’s added around $230,000 to Australia’s median home value.

So do values double every 10 years?

It turns out that over the decade to April 2025, home values have, broadly speaking, fallen short of doubling.

Data from CoreLogic shows that on a national basis, property prices have climbed 67.3% in the past 10 years (certainly nothing to sneeze at, though!).

Here are the gains each capital city has made over the past decade:

– Adelaide: 93.6% (the capital city closest to doubling)
– Brisbane: 91.2%
– Hobart: 86.4%
– Sydney: 61.6%
– Canberra: 60.7%
– Perth: 55.6%
– Melbourne: 43.8%

Only one city – Darwin – saw a decline in values (-0.5%) over the past 10 years.

Bear in mind that in some cities with average higher property prices, such as Sydney and Melbourne, some home owners may have pocketed bigger gains in dollar terms as a result of price rises over time, despite the smaller percentage gains.

Time to dispel another myth

The same CoreLogic data seemingly busts another myth – the one about home values across our major cities being more likely to notch up bigger gains than regional properties.

Since 2015, home prices have come closest to doubling in country New South Wales (up 97.5%), regional Tasmania (96.1% higher) and regional Queensland (up 91.5%).

All told, property prices across the nation’s combined regional markets are 87.5% higher than they were 10 years ago, compared to 61.7% gains across our combined capital cities.

Once again, though, keep in mind that capital city properties ($905,000 median value) are often worth more than regional properties ($673,000 median value), and therefore could realise higher gains in dollar terms, despite smaller percentage gains.

The bottom line

Generalisations may make for great barbecue conversations.

But when it comes to major financial commitments such as buying a home, it pays to stick to the facts.

Many locations and individual properties haven’t – and quite possibly never will – double in value every ten years.

That doesn’t mean that your home won’t enjoy significant gains in value over time.

Add in a home loan that’s right for your needs, and home ownership can make a valuable difference to your personal wealth.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Albo re-elected: what’s on the board for home buyers and owners?

The votes have been cast and it’s clear Labor will hold the reins of federal government for another 3-year term. We look at what this may mean for first home buyers and current home owners.

As the election dust settles, it’s time to get back to business as usual.

But there could be a few changes on the horizon depending on whether you’re planning to buy a first home or you’re already a home owner.

But first, where is the property market currently at?

As we approach the mid-point of 2025, the property market is still notching up gains.

Home values nationally rose 0.3% in April, taking Australia’s median home price to a new record high of $825,349.

For that amount, mustering up a 20% deposit calls for savings of around $165,000.

But you may be able to buy with less under a number of Labor election promises and initiatives.

5% deposit scheme to be expanded

The Home Guarantee Scheme (HGS) already offers an opportunity for eligible first home buyers to get into the market with just a 5% deposit and zero lenders mortgage insurance.

From January 2026 the scheme will be expanded.

Every first home buyer will be eligible to purchase a home under the HGS, with income caps for applicants to be scrapped, property price limits to be increased, and the removal of caps on the number of people who can apply for the scheme each year.

Increased supply of new homes just for first home buyers

CoreLogic points out that first home buyer incentives often do very little to improve housing affordability.

In fact, they can push up property prices by boosting demand.

A potential long-term fix is to build more houses.

Labor has promised to help ease pressure on demand by investing $10 billion in building up to 100,000 homes reserved exclusively for first home buyers.

The Grattan Institute crunched the numbers, finding that if all 100,000 homes are built, house prices could soften by up to 2.5%, potentially offsetting any possible price increases from the expanded Home Guarantee Scheme.

Help to Buy shared equity scheme

The Albanese government has pledged to go ahead with its Help to Buy scheme for first home buyers.

The idea is that the federal government will chip in as much as 40% of the cost of a first home while buyers need as little as a 2% deposit.

Help to Buy has been a slow burn, having been part of Labor’s 2022 election platform. The delay in its rollout is partly due to each state and territory government needing to pass its own legislation to make Help to Buy a reality.

It’s a case of ‘watch this space’ to know when the scheme will finally get off the ground in your state or territory.

Current home owners can soon access cheaper batteries

One in three Australian households now have solar, but only one in forty households have a battery.

That could soon change, with current homeowners being able to access the Cheaper Home Batteries Program from 1 July 2025.

It’s hoped that the subsidy program will push down the cost of buying and installing a household solar battery by 30% – or about $4000 per battery – and help households reduce reliance on the grid.

The government estimates that homes with existing rooftop solar could save up to $1,100 on their annual power bill.

Talk to us to know how you could benefit

With a range of schemes and benefits up for grabs, it can be tricky to work out what you may or may not be eligible for.

From buying a first home, to making your current home more eco-friendly, we can guide you through the funding solutions to help you achieve your property goals.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Myth buster: do weekly repayments pay off an offset loan faster?

There’s a common misconception around offset account home loans that making loan repayments more frequently helps to pay off the balance much sooner. We bust that myth and reveal the real secret to harnessing the power of your offset account.

You may have heard that making repayments more frequently, say weekly instead of monthly, helps pay down a loan sooner.

That can be the case with a standard home loan.

But if you have an offset account home loan, the secret to paying off your loan sooner is maximising the balance of the linked offset account.

Let’s look at how this works.

Paying weekly or fortnightly versus monthly

A common hack to save on home loan interest is to pay half your monthly loan repayment each fortnight. Or a quarter of your monthly repayment each week.

The idea is that by paying that respective amount weekly or fortnightly, you’ll make the equivalent of an extra month’s repayment each year.

It’s a simple strategy, and the hope is that you don’t really notice the extra cash being funnelled towards your home loan.

However, if you have an offset home loan, the frequency of repayments is less important.

What really matters is having as much spare cash as possible sitting in the linked offset account – or accounts.

How to harness the power of your offset account

An offset account is an everyday account linked to your home loan.

For the purpose of monthly interest calculations, every dollar in the offset account is deducted from the balance of your loan – usually calculated on a daily basis.

So if you have $20,000 in the offset account and a home loan of $500,000, you only pay interest on $480,000 ($500,000 less $20,000).

It makes an offset account a powerful tool to reduce the loan interest you pay each month.

Better still, as your loan repayments stay the same every month, a greater proportion of your repayment goes towards paying down the loan balance (principle), rather than interest.

This further reduces each monthly interest charge.

In this way, your offset account can help you fast-track your way to mortgage freedom.

Making the most of an offset account

The golden rule to maximising the interest savings of an offset account is to keep as much money in your offset as possible. And some home loans even let you have multiple offset accounts.

Every day that your money is sitting in an offset account is another day you pay less interest on your home loan.

If you can tick this box, you’ll be using an offset account effectively, and the frequency of your home loan repayments won’t really matter.

Want to know more about offset account home loans?

Offset account home loans can come in different shapes and sizes. Some only allow you to link one offset account, with others you can link many accounts, and you may also be able to attach a debit card to your offset account/s.

If you’d like help figuring out what offset loan might be a good fit for you, get in touch today.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Could US tariffs be good news for Aussie home owners?

Tariff-triggered cuts to interest rates could be just around the corner, with Australian borrowers the likely winners if they come to fruition.

US trade policies have hit media headlines this month following Donald Trump’s controversial tariff announcements on 2 April.

The flow of tariff announcements coming out of the US has rattled share markets globally, driven by uncertainty plus fears of an economic slowdown in the US.

However, there may be a silver lining to the tariff cloud for Australian home owners.

All four of Australia’s major banks are predicting solid cuts to interest rates – and they could come sooner rather than later.

Here’s what the big banks are saying could happen.

The cash rate could fall to 3.35%

NAB believes the Reserve Bank of Australia (RBA) is likely to act quickly, with a 0.5% rate cut in May, followed by 0.25% cuts in July, August, November and even February 2026.

Over at ANZ, the forecast is for the RBA to cut the cash rate by 0.25% in May, followed by 0.25% cuts at its July and August meetings.

That could see the cash rate drop to 3.35% by August, down from 4.1% at present.

Meanwhile, the experts at Westpac expect three more 0.25% rate cuts this year.

And the CommBank view is that the RBA will likely cut rates by 0.75% in total by year’s end, adding that “a rate cut in May is a done deal” depending on inflation figures.

No guarantees

Given the fast-moving tariff situation, it’s no surprise all four big banks have highlighted that their rate forecasts are not set in stone.

And of course, it’s the RBA that calls the shots on the cash rate.

On that front, the RBA isn’t giving much away.

In its latest (April 15) Board meeting, the RBA kept rates on hold, saying it wanted to wait and see how US trade policies could impact the Aussie economy, job market and its arch-enemy – inflation.

We won’t know how inflation is tracking until 30 April when the latest figures come out – about a fortnight before the RBA meets again on 19-20 May.

Long story short, it’s a case of ‘watch this space’ – for a few weeks at least.

Building costs could rise

A downside of US tariffs is a possible impact on new home building costs.

If Australia ends up facing higher prices for materials used in construction, we could see price increases for new home builds and renovations.

So it’s worth speaking to us about your borrowing power if you’re planning a big construction project in the near future.

Could you make a rate cut of your own?

If the major banks are right, we could see rates start to fall as soon as next month.

But home owners may be able to enjoy a rate cut of their own even earlier.

Plenty of lenders are offering home loan rates that start with a 5.

That provides lots of potential for you to save by switching to a new loan. It could also be an opportunity to enjoy improved loan features.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Election 2025: what’s on offer for first home buyers?

Australians will head to the polls on May 3, and with housing affordability shaping up as a key election issue, we unpack how the two major parties are pledging to help first home buyers.

Housing affordability has reached boiling point.

Both Labor and the Coalition agree on this

But they’re offering different solutions for first home buyers.

As polling day approaches, we break down what’s up for grabs as the major parties face off on support for first home buyers.

First up, the incumbent: Labor

It’s estimated that housing demand could exceed supply to the tune of 163,400 dwellings between now and 2032.

Labor is pledging to invest $10 billion towards building up to 100,000 homes exclusively for first home buyers.

Labor is also promising to make it easier for first home buyers to get into the market by expanding the First Home Guarantee scheme.

This would allow more first home buyers to purchase a home with just a 5% deposit and zero lenders mortgage insurance (which can be a big saving for first home buyers).

At present, first home buyers face income limits to be eligible for the 5% deposit scheme.

Labor is pledging to scrap the income limits so that all first home buyers would be eligible, regardless of income.

There would still be caps on the maximum price you could pay for a home under the scheme, but the price limits would be increased if Labor is re-elected.

Labor has also promised to expand eligibility for its Help to Buy scheme – where the government would cover up to 40% of a home’s cost that first home buyers can buy out at a later date.

The Coalition – a tax break for home loan interest

The Coalition is pledging to introduce a new First Home Buyer Mortgage Deductibility scheme.

This would allow first home buyers to claim their home loan interest as a tax deduction.

There are strings attached.

You would need to buy or build a brand new home, and you could only claim a deduction on the interest that applied to the first $650,000 of your home loan – and only for the first five years.

The proposed scheme would only be available to individuals earning up to $175,000 annually, or up to $250,000 for joint buyers.

Like Labor, the Coalition is also planning to fine-tune the 5% deposit First Home Guarantee scheme.

If elected, it promises to increase the income limit for buyers to be eligible for the scheme while also raising the property price limits.

In addition, there would be no maximum limit on the number of first home buyers who could access the scheme each year.

The Coalition is also promising to allow first home buyers to use up to $50,000 of their superannuation to buy a home.

Under the policy, the $50,000 would need to be returned to the superannuation account when the house that was purchased using the super funds was sold.

Want to know more?

Buying a first home can be daunting.

So it’s good to know you can rely on our support no matter who wins the federal election on May 3.

Contact us today to learn more about the home buying process, and discover the range of first home buyer incentives that you may be eligible for right now.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Home owners notch up gains of $230,000 in just 5 years

The five years since 2020 have seen plenty of action.

From the pandemic (let’s not go there again), through to a change in government, and some notably wild weather events around the country, there’s been no shortage of highs and lows.

Chances are, you’ve seen a few changes of your own. Maybe a new career or the arrival of a new family member.

Through it all, your home’s value has likely been steadily rising in the background.

Gains of 39% in five years

The latest data from CoreLogic shows home values nationally have surged 39.1% over the past five years to a median value of $820,331.

Translated to hard coin, that means an extra $230,000 has been added to the median home value.

But here’s the thing.

While a 39% gain is impressive, it’s actually pretty modest compared to the percentage gains of earlier periods.

In Sydney, for instance, home prices grew 78% in the years between 1998 and 2003.

In Melbourne, home values jumped 79.5% in the early 2000s.

Meanwhile, cities such as Brisbane, Adelaide, Perth, Hobart and Canberra experienced their largest five-year gains through the mid-2000s, with values across these markets roughly doubling over the period.

What’s different this time around is that home values are higher than in the past.

That means while the latest increase has been “mild in percentage terms”, according to CoreLogic, the $230,000 average dollar value of current price gains “far outperforms historic peaks”.

For example, by comparison, the dollar rise seen over the five-year 80% national increase to December 2003 was roughly $90,000 less, at $140,000.

Putting equity to work

An increase in your home’s value can be worth more than bragging rights at your next BBQ.

It could be that you have considerable home equity. That’s the difference between your home’s market value and the balance remaining on your home loan.

Home equity is more than just a number. It can also be a valuable resource.

It may be possible, for example, to put home equity to work to achieve personal goals – anything from completing renovations, buying an investment property, refinancing to a lower interest rate, or just taking a well-deserved family holiday.

To find out how to tap into your property’s equity, get in touch with us today and we’ll run you through the numbers.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

5 fun (and budget-friendly) ideas for an Easter staycation

Fun fact: 2025 sees the Easter public holidays fall in the same week as Anzac Day.

That means that from Good Friday on 18 April through to the Anzac Day weekend starting Friday 25, you could score a 10-day break and only use three days of annual leave.

This meshing of Easter and Anzac Day has only happened 17 times in the last century and just five times this millennium.

Why waste the opportunity? Time to start booking leave.

Don’t have the cash for an expensive holiday? No problem.

If your budget is tight, or pet obligations keep you at home, check out our top tips for an exciting staycation at home.

1. Prepare your home in advance

Prepare your home as if a special guest was arriving, only the special guest is you!

Give the place a thorough clean, stock the bathroom with clean towels, have fresh sheets on the bed.

Tuck away anything that will break the holiday spell – from the lawn mower to paperwork for bills.

Sure, it’s not the “fun” part of the holiday.

But it will make the next 10 days feel a little less cluttered and give you more space to stretch out, kick back and relax.

2. Stock the fridge or whip up a feast

Great food is always part of a great holiday. And a staycation is no exception.

Indulge yourself by stocking the fridge with the food and drinks you would normally reserve for special occasions – artisan cheeses, special cuts from the butcher or that $10 sourdough you’ve always wanted to try.

Alternatively, dust off the kitchen apron and try your hand at a dish or two you’ve always wanted to cook, but never had the time to do so.

One cheap and easy win is breakfast crepes – they only cost a few dollars to make and the whole family can have fun trying to flip them.

3. Explore (and support) your local neighbourhood

Chances are your local area has plenty of hidden gems you’ve never had time to try out.

Here’s your chance to explore them.

Check out that new café, head off on a bike ride you haven’t experienced before, or take the yoga class you’ve never got around to.

The main point is to leave the normal routine behind. Unwind and let yourself meander around locally at your own leisurely pace.

4. Go backyard camping

Who needs an expensive caravan?

There’s something about camping that kids love – from pitching tents to cosying up in a sleeping bag.

Use your staycation to set up a family backyard sleep out – complete with a contained mini firepit (that you can buy from Bunnings) to roast some marshmallows while teaching the kids about the star constellations.

If your home is an apartment, create an awesome indoor camp-out by gathering up sheets and pillows to build a snug blanket fort.

Turn off the lights, flick on the torches, and bring the outdoors inside with picnic dinner on a blanket on the floor.

5. Be a tourist in your own city

Ever noticed that overseas tourists often experience all the sights that locals don’t have time to?

A staycation is a great opportunity to tick through the tourist bucket list and see what overseas visitors rave about.

Head to museums, galleries and cathedrals (many offer free or low-cost entry) and soak in whatever your state capital has to offer.

A quick Google search of “What’s on in [your neighbourhood]” should also give you plenty more inspiration.

Don’t forget to grab a souvenir – maybe a fridge magnet or mug, as a memento of the special time you got to know your city a little better.

Relish everything your home has to offer

In the day-to-day rush of our lives, it can be easy to overlook that our home is our personal sanctuary. A place to enjoy downtime, relax and unwind.

Make the most of your home through the upcoming mega-holiday, and you could make amazing memories while not forking out the type of money you’d have to for a trip away from home.

Talk to us today for more ideas on making the most of your home – and home loan.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to Speed Up Your Home Loan Approval: A Comprehensive Guide

How to Speed Up Your Home Loan Approval

Getting home loan approval can sometimes take longer than expected, but there are ways to make the process smoother and faster. Lenders evaluate several factors, including your credit score, income stability, and loan application details, to determine your eligibility. By preparing in advance and following the right steps, you can avoid unnecessary delays and get approved sooner.

Whether you’re a first-time buyer or refinancing, this guide will help you speed up your mortgage approval with practical tips.

Understanding the Home Loan Approval Process

The home loan approval process involves multiple steps, and understanding how lenders evaluate your mortgage application can help you prepare in advance. Banks and mortgage lenders assess various factors, including your credit score, income, debt-to-income ratio, and down payment amount.

Typically, the approval process includes:

Loan Pre-Approval: Lenders review your financial background and provide a conditional approval.
Formal Application Submission: You submit all necessary documents, including proof of income, ID verification, and bank statements.
Credit and Financial Assessment: The lender evaluates your credit history, outstanding debts, and repayment ability.
Property Valuation: If required, the lender assesses the property’s value to determine loan eligibility.
Final Approval and Loan Settlement: If all conditions are met, the lender formally approves the loan, and funds are disbursed.

Knowing these steps can help you avoid unnecessary delays and speed up the approval process.

Steps to Get Your Home Loan Approved Faster

If you want to speed up your home loan approval, taking proactive steps can make a big difference. Lenders look for applicants who are financially prepared and meet all requirements without delays. Below are key actions that can help you get approved faster.

Get Pre-Approval for Faster Processing

A loan pre-approval gives you an estimate of how much you can borrow and shows sellers you’re a serious buyer. It also speeds up the formal approval stage since lenders have already reviewed your financial details.

Contact a mortgage broker or lender early to start the pre-approval process.
Ensure your credit score and financial records are in good shape before applying.

Minimise Debt and Reduce Expenses

Lenders check your debt-to-income ratio to assess if you can handle additional loan payments. Lowering your debts improves your chances of formal approval.

Pay off outstanding loans and credit card balances where possible.
Avoid taking on new debts before submitting your loan application.

Improve Your Credit Score Before Applying

Your credit score is one of the most important factors in a mortgage loan approval. A higher score can lead to quicker approval and better interest rates.

Pay all bills on time and clear overdue debts.
Check your credit report for errors and dispute any inaccuracies.

Establish a Strong Savings and Repayment History

Lenders prefer borrowers with a proven track record of managing finances well. Having consistent savings and regular debt repayments builds trust with mortgage lenders.

Maintain a solid history of rent or mortgage payments.
Keep savings aside for your down payment and other loan-related costs.

Avoid Making Too Many Loan Applications

Applying for multiple mortgage loans at once can negatively impact your credit score and signal financial instability to lenders.

Research and choose the best home loan option before applying.
Avoid applying with multiple lenders within a short time.

Organise and Submit All Required Documents

Missing documents are a common reason for delays in the loan approval process. Ensure you provide all necessary paperwork upfront.

Gather payslips, tax returns, bank statements, and proof of employment.
Have your loan calculators ready to estimate your borrowing capacity.

Declare All Liabilities to Avoid Delays

Failing to disclose existing debts can slow down your mortgage application or even result in rejection. Transparency is key to a smooth approval process.

Declare credit cards, car loans, personal loans, and any other financial obligations.
Provide accurate information to prevent unnecessary back-and-forth with lenders.

Choose the Right Mortgage Broker or Lender

Working with an experienced mortgage broker can help streamline your home loan process. Brokers guide you through lender requirements and match you with the best options.

Compare different lenders and loan terms.
Seek professional guidance from mortgage brokers to improve approval chances.

Use Loan Calculators to Understand Your Eligibility

Online loan calculators can help you estimate loan repayments, compare interest rates, and assess affordability before applying.

Use home loan calculators to set realistic expectations.
Check if you meet lender criteria before submitting your application.

Ensure a Stable Employment History

Lenders prefer applicants with consistent employment and income stability. A strong job record increases your home loan approval chances.

Avoid changing jobs during the loan approval process.
Show steady income through payslips and tax returns.

Be Open and Honest About Your Financial Situation

Honesty and transparency with lenders help prevent unnecessary delays and improve your credibility.

Provide clear and accurate information in your loan application.
Respond to lender requests promptly to keep the approval process on track.

Additional Tips for Faster Approval

Beyond the essential steps, a few extra strategies can help accelerate your home loan approval process. These small but effective actions can make a big difference when dealing with mortgage lenders.

Save for a Higher Down Payment

A larger down payment reduces the lender’s risk and can speed up approval. Some lenders may even waive certain requirements for borrowers with a high deposit.

Aim for at least 20% of the property price to avoid Lenders Mortgage Insurance (LMI).
Increase your savings to show financial stability.

Reduce Your Debt-to-Income Ratio

Lenders compare your income to existing debts before approving a mortgage loan. A lower debt-to-income ratio improves approval chances.

Pay off credit cards and personal loans before applying.
Avoid making large purchases on credit.

Anticipate Requests for Additional Information

Sometimes lenders request extra documents or clarifications before granting formal approval. Being proactive can save time.

Keep your financial records up to date.
Respond quickly to lender requests to prevent delays.

Have Your Budget Ready for Quick Assessment

A well-documented budget reassures lenders of your ability to manage loan repayments.

Use loan calculators to estimate monthly expenses.
Plan for additional costs like stamp duty, legal fees, and property inspections.

Consulting a Mortgage Professional for a Smoother Process

Navigating the home loan approval process can be overwhelming, especially with varying lender requirements and financial assessments. A mortgage broker can help simplify the journey by guiding you through your options and ensuring you meet all lender criteria.

How a Mortgage Broker Can Help

Working with a mortgage broker gives you access to a wider range of lenders and home loan products, helping you secure the best deal.

Compare different lenders and interest rates to find the most suitable option.
Get assistance in preparing and submitting your mortgage application correctly to avoid delays.
Receive expert advice on improving your credit score and financial profile.

When to Seek Expert Guidance

If you face challenges like a low credit score, inconsistent income, or complex financial history, consulting a mortgage broker can increase your chances of approval.

If you’ve been rejected by a lender, a broker can help find alternative solutions.
If you’re unsure about loan terms, a broker can break down the details for you.
If you want to refinance mortgages, they can help secure better terms.

Get Personalised Home Loan Assistance Today!
Finding the right home loan can be tricky, but you don’t have to do it alone. Front Row Financial connects you with experienced mortgage brokers who can fast-track your loan approval.

Talk to an expert today and take the next step toward your dream home!

Get Your Home Loan Approved Without the Stress

Waiting for home loan approval can feel overwhelming, but it doesn’t have to be. A little preparation—like improving your credit score, reducing debt, and choosing the right mortgage lender—can make the process much smoother.

Taking simple steps, such as getting pre-approved, organising your paperwork, and working with an experienced mortgage broker, can help you move forward faster and with confidence.

Let’s Make Your Home Loan Approval Easy!
No more waiting and wondering—Front Row Financial can help you fast-track your approval.

Talk to a mortgage expert today and take the next step toward your new home!

FAQs:

Q1: How long does home loan approval usually take?

The home loan approval process can take anywhere from a few days to several weeks. Factors like your credit score, loan application completeness, and lender requirements influence the timeline. Working with a mortgage broker and organising documents in advance can help speed things up.

Q2: What can cause delays in my home loan approval?

Common reasons for delays include:

Missing or incomplete documents
A low credit score or outstanding debts
Unstable employment history
Applying for multiple mortgage loans at the same time
Property valuation issues

Q3: How can I improve my chances of quick loan approval?

To get home loan approval faster:

Pay off debts and improve your credit score
Save for a higher down payment
Organise all necessary paperwork before applying
Work with a trusted mortgage lender or broker

Q4: Does pre-approval guarantee loan approval?

No, loan pre-approval is not a final approval, but it does increase your chances of success. It shows lenders that you’re financially capable, but they still need to assess factors like the property valuation and your final financial position.