Tips and Tricks Archives - Frontrow Financials

How you could boost your home’s value by $118,000 (and save on bills)

With winter temps falling, chances are your power bills will rise. This helps explain why buyers are willing to pay 14% extra for energy-efficient homes on average. Here’s how to give your place a ‘green premium’.

There’s a lot to love about winter. Cosy nights in, warming mugs of hot chocolate, and maybe a trip to the snow.

The downside is bigger power bills.

With energy costs set to climb higher across many parts of the country, it’s not surprising that home buyers are increasingly looking for properties that deliver savings on power bills.

And new research by Domain shows buyers are willing to pay 14.5% more for energy-efficient houses and 12% more for energy-efficient apartments on average – that equates to about $118,000 and $75,000 more, respectively.

Here’s how to give your place an energy-efficient makeover.

Our homes can be energy guzzlers

According to Domain’s latest Sustainability in Property report, Australian homes consume around one-quarter (24%) of the nation’s electricity.

It’s not because we forget to turn the lights off.

Experts say most Aussie homes have “poor thermal performance”: our homes swelter in summer and shiver in winter.

So, we turn to energy-hungry appliances to stay comfortable.

Energy-efficient homes do the opposite. They reduce power consumption to save on energy bills, and enhance livability.

Yet one-in-four Australians currently live in a home with zero energy-efficient features.

What buyers want and what adds value

Solar power, passive design elements and double-glazed windows consistently rank among the most sought-after features, delivering both lifestyle advantages and lower household running costs, according to Domain.

North-facing homes also command a premium price tag as they provide maximum exposure to natural light and warmth during cooler months, and only 15% of Australian homes have a north-facing orientation.

However, energy-efficient home improvements don’t have to be complex (or impossible, for those of you who don’t have a north-facing house).

Something as simple as roof and ceiling insulation can cut heating and cooling costs by 45%.

Bigger investments, such as installing rooftop solar, can be more affordable with the help of government grants, rebates and subsidies.

And from 1 July 2025 the new Cheaper Home Batteries Program can reduce the cost of installing solar batteries by about 30%.

Talk to us to know what’s available

Whatever eco-features you consider, there are various ways you could fund your green improvements.

A home loan top-up with your existing lender could help free up additional funds.

Some lenders have ‘green loans’ specifically designed to fund energy-efficient improvements.

You could even save on interest by refinancing to a lower-rate home loan.

It can be a way to put your home equity to work while also increasing your home’s liveability and potentially its value.

So get in touch for help funding a toastier winter and more pleasant summer.

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.

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.

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.

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.

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.

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.

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.

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.

Why 1-in-2 families are thinking of refinancing

There’s nothing like a rate cut to put a spring in homeowners’ steps.

February’s 0.25% rate cut, for instance, saw consumer sentiment jump to a three-year high.

But with the Reserve Bank of Australia (RBA) keeping rates on hold in April, and no chance of another cash rate cut until 20 May, many home owners are taking a do-it-yourself approach and cutting their home loan rate by switching to a new loan or lender.

A Canstar survey found more than one in two (55%) variable rate borrowers are considering refinancing, while one in seven (14%) have already made the move over the last 12 months.

The potential to pay a rate starting with a ‘5’

When did you last review your home loan?

According to Finder, variable and fixed mortgage rates have dropped to their lowest levels since early 2023, and loans with rates below 6% are “flooding the market”.

More than 30 lenders are offering at least one variable rate under 5.75%, according to Canstar.

Despite this, the average owner-occupier variable rate is still sitting at about 6.44% (Mozo stats).

That suggests to us that there are plenty of borrowers who could be paying more interest than necessary each month.

Fixed rates are also heading south

It’s not just variable rates that are falling.

Mozo reports a whopping 39 lenders cut some or all their fixed options in March.

And you don’t have to lock in for a long period; a number of one-year fixed rates are also competitive at present.

Question is, how much can you really save by refinancing?

The potential to save over $12,000 in just 2 years

Canstar crunched the numbers and found that a complacent borrower who hasn’t refinanced in a while could be on a variable interest rate of about 6.86% at present.

However, let’s say that same borrower refinanced a $600,000 loan down to an interest rate of 5.74% – that could potentially save them more than $12,000 in interest over the next two years.

Even if your current rate is at 6.06%, Canstar says refinancing to 5.74% could still see you save almost $3,000 in interest over the next two years.

Of course, exactly how much you could save by refinancing depends on the rate you’re currently paying.

That makes it worth giving us a call – we can put you in the know with figures tailored to your situation.

Why wait for an official rate cut?

We could all do with lower home loan repayments.

And with no guarantees that the RBA will cut rates further any time soon, it might be worth taking a look to see if you could save by switching.

Remember too, that refinancing isn’t just about trying to pay a lower interest rate.

It can also be an opportunity to tap into new loan features, or access home equity to achieve personal goals such as buying an investment property or renovating your home.

So if you haven’t refinanced in a while, give us a call today and we’ll walk you through your options.

Sounds of silence: how traffic noise can impact property values

Location, location, location.

When you’re hunting for a new home, most people are on the lookout for an abode that’s close to public transport and other convenient transport infrastructure.

But how close is too close? And can an increase in transport noise result in a decrease in property value?

New research by PropTrack and Ambient Maps suggests so.

How much can traffic noise impact property prices?

The study analysed noise pollution across Victoria from busy roads, railways and air traffic. Then it measured those findings against nearby property sale prices over a five-month period.

Here’s how the findings stacked up for every 10 decibel (dBA) increase in noise:

Roads: an average decrease in property value of 6% was seen for every 10 dBA increase in road noise.

Rail: an average decrease of 4% was seen for every 10 dBA increase in rail noise (even after accounting for the benefits of the convenience of living near a train line).

Aircraft: an average decrease of 6-9% for every 10 dBA increase in aircraft noise. Given that properties outside the flight path can experience noise levels that are 20 dBA less than those within the flight path, the difference in property value may be significant.

By way of example, a 5% decrease on a $1 million property is about $50,000.

What does a difference of 10 dBA sound like?

Included in the study on page 8 is a neat little graphic that illustrates the differences between a 45 dBA home, all the way up to a 75 dBA home.

We’ll do our best to describe it to you below if you can’t click the link above:

45 dBA home: Located in a quiet cul-de-sac with no through traffic and no public transport nearby.

55 dBA home: A home in a two-way suburban street with minimal traffic passing by.

65 dBA home: Located on a main road with four lanes of traffic and public transport such as a bus or tram regularly passing by.

75 dBA home: Located on a six-lane arterial road, with trucks, buses and plenty of cars travelling along it.

The silver lining of it all

Sure, owning a property close to a busy road, train station or flight path could impact your home’s long-term investment value.

But it can also allow you to break into the property market in a home that’s a great fit for your family sooner.

There are also lots of ways you may be able to help soundproof your home, such as double glazing, sealing gaps, solid core doors, soundproof curtains, insulation and even soundproof panelling.

The main thing to be aware of when you’re buying a home: don’t let the “location, location, location” sales pitch twist your arm into overpaying – especially if noise becomes a factor.

So if you’re currently in the market to buy, get in touch with us today and we’ll assess your borrowing power to help give you a better idea of what you can afford.