Results Home Loans
February 2025 Update
What’s been going on this month?
Stay current with Results Home Loans and any updates in the market
Rate Movements
As of 10 December 2024, RBA has decided to leave rates unchanged, keeping the Cash Rate at 4.35%.
RBA Cash Rate in February 2015 was 2.25%.
Westpac
Peak of 4.35% in November 2023, then dropping to 3.35% by December 2025
NAB
Peak of 4.35% in November 2023, then dropping to 3.10% by June 2026
CBA
Peak of 4.35% in November 2023, then dropping to 3.35% by December 2025
ANZ
Peak of 4.35% in November 2023, then dropping to 3.85% by August 2025
CURRENT INTEREST RATES FOR HOME OWNERS
Based on a $500,000 loan over a 30 year term at 80% LVR with Principal and Interest repayments.
CURRENT INTEREST RATES FOR INVESTORS
Based on a $500,000 loan over a 30 year term at 80% LVR with Interest Only repayments.
Lender Turnaround Times
As at 24/01/2025
1 Day
2 Days
3 + Days
Industry News
Behind on Housing Target: Can We Hit 1.2 Million Homes?
The government’s goal to build 1.2 million homes by 2029 is off to a slow start, with the latest Australian Bureau of Statistics data showing only 43,247 dwelling commencements in the September quarter—15,000 short of the quarterly target of 60,000.
The Property Council of Australia has emphasized the urgency, noting that just 44,884 homes were built in the first three months of the Housing Accord, far below what’s needed. Matthew Kandelaars, the council’s group executive, warned, “If we don’t start strong, meeting the target will be near impossible.”
HIA senior economist Tom Devitt echoed the concerns, highlighting that higher-density housing development is at its lowest in over a decade due to labour shortages, regulatory barriers, and tax uncertainty. Devitt called for a significant increase in multi-unit housing starts to meet demand driven by elevated migration levels.
Master Builders Australia CEO Denita Wawn identified apartment construction as the key to success, stressing the need for improved investment conditions and infrastructure to make such projects viable.
While the federal government has announced an ambitious building program, most states and territories still lag behind. Experts are urging immediate action to cut red tape, address labour shortages, and reduce costs to ensure the target is met and alleviate the national housing supply shortage.
Rate Cuts Unlikely to Trigger Housing Surge: CoreLogic
While interest rates are expected to drop this year, CoreLogic predicts minimal impact on home values and buying activity.
At least one cash rate cut is anticipated in 2025, with two of the big four banks forecasting a February reduction by the Reserve Bank of Australia (RBA) and more cuts later in the year. Despite hopes that lower rates will boost the housing market, CoreLogic’s head of research, Eliza Owen, warns the impact may be limited.
Even with a potential 135-basis-point drop in the average mortgage rate, a median-income household could afford a $593,000 home—still far below the current median value of $815,000. Additionally, a projected cash rate of 3.1% by 2025 remains higher than the pre-COVID average of 2.55%.
Owen emphasizes that regulatory actions will significantly influence the effects of rate cuts. She notes that the Australian Prudential Regulation Authority (APRA) has maintained a 3% mortgage serviceability buffer, despite calls to lower it. Reducing the buffer to 2.5% could boost borrowing capacity, but APRA has shown no signs of easing its stance due to concerns over household debt.
Rate cut forecasts vary: ANZ expects two 25-basis-point cuts this year (February and August), while CBA predicts four across 2025, taking the cash rate to 3.35%. Meanwhile, Macquarie Bank has already dropped some fixed rates, and consumer sentiment around housing has improved. However, the long wait for relief is increasing mortgage stress risks.
As of January 23, markets were pricing in a 78% chance of a February rate cut to 4.10% and 65 basis points of total reductions this year, bringing the cash rate to approximately 3.64%.
Webinar Success
Unlock the Power of Your Super Self-Managed Super Funds and Property Investment 🏠📈
We’re thrilled to share that our exclusive webinar, hosted by Results Home Loans & Concepts & Results, was a resounding success!
Attendees gained valuable insights on:
✅ Taking control of retirement savings through SMSFs
✅ Key steps for purchasing real estate within an SMSF
✅ The mortgage process and financing options for SMSF property investments
✅ Expert advice on the best tax structures for your investments
Missed it?
No worries! The recording is now available. If you’d like a copy let us know!
Other services
🎙️ Podcast 🏠
We’re thrilled to share that Nadia recently recorded an insightful podcast with our new partners, Turnkey Building Group. This engaging session highlighted shared expertise, collaborative goals, and the value of building strong partnerships. We are truly grateful to Turnkey Building Group for their openness and enthusiasm in joining forces with us. Together, we’re paving the way for exceptional outcomes for our clients!
⬇️ Catch the episode here ⬇️
New Free Resources Available for our Clients!
At Results Home Loans, we’ve launched a Free Resources section on our website to help clients navigate the complexities of home loans and financial planning. These resources are designed to educate, empower, and support them throughout their journey.
📘 What’s Included?
- Guides on bridging loans, FHOG (First Home Owner Grant), and self-employed income.
- Tips and tools to simplify the lending process.
You can check out the full list of resources here:
👉 Results Home Loans Free Resources
Feel free to share this link with your clients to provide them with valuable insights and tools, all at no cost! If you have any questions or would like to discuss how these resources can benefit your clients, don’t hesitate to reach out.
Client Success Storys:
Fiona
What the Clients Needed:
- The client is a single mum, looking to buy her first home with $80k in savings.
- She aimed to utilise available First Home Buyer grants and schemes, as she had approximately a 10% deposit saved for her ideal purchase price.
What We Did:
- We initially explored the option of having the client’s loan under the First Home Buyer grants/schemes. However, due to a recent salary increase, she was no longer eligible for the First Home Buyer Guarantee Scheme as her annual income exceeded the eligible income threshold of $125k for individuals.
- We discussed alternative options with the client, who ultimately decided to proceed with the loan under the LMI category.
- We conducted thorough research on lender products, ensuring a balance between borrowing capacity, LMI premium, interest rate, features, and surplus funds.
- Based on our findings, we recommended Suncorp as it aligned better with the client’s needs, offering high borrowing capacity, offset and credit card features, an annual fee waiver, and a mid-range LMI premium and interest rate.
- We submitted her application to Suncorp with a 95% LVR, including LMI.
Results:
- The application was approved in November 2024 and settled in January this year.
Thank You!
The value of a strong network and partnerships is priceless, and your referrals have not only brought us new opportunities but reinforced our confidence in delivering exceptional services.✨ We want to take a moment to express our heartfelt thanks for your amazing support and collaboration. 🤝 Your trust in recommending us to your network means the world, and we're honored to have earned it. 🙏 We deeply appreciate your efforts with every referral, and we're here to return the favor anytime you need. If you ever need assistance or a reliable partner, don't hesitate to reach out! 💬