Home buyers – check with your mortgage broker to find out if this changes your borrowing capacity or anticipated repayments.
Home owners – check with your lender to see if the rate cut will be passed on to you.
The Reserve Bank of Australia (RBA) has reduced the official cash rate by 25 basis points to 3.60% following its most recent board meeting on 12 August 2025.
This is the third rate cut this year after the most recent high of 4.35% though most of 2024.
The RBA’s June 2025 average for home loan rates put them at 5.8%, down from a high of 6.3% in February.
What this could mean for homebuyers
Lower interest rates and government policies that support first homebuyers or people on low incomes could make the housing market more accessible.
However, with more potential buyers looking there could be more competition to secure properties on the market.
Thinking of buying?
Contact our Sales Centre to speak with a consultant about the options available.
Help getting into the market
There are a range of programs from the Victorian and Australian governments to help people purchase a home to live in.
Programs may have limited places so check with the relevant department or your mortgage broker to see what is currently available.
Check your eligibility
If you’re considering applying, please read the information from the relevant government department or agency carefully and seek assistance to understand your obligations.
Government programs are subject to change and up to date information about the policies and programs should be sought directly from the organisation administering the policy.
Australian Government homebuying programs
- Housing Australia – Home Guarantee Scheme
- Housing Australia – Regional First Home Buyer Guarantee
- Housing Australia – Help to Buy scheme
- Housing Australia – Family Home Guarantee (single parents)
- Housing Australia – Tools and resources
- Treasury – Supporting people into home ownership
- Australian Taxation Office – First home super saver scheme
Victorian Government homebuyer programs
- Housing Victoria – Home Ownership
- Housing Victoria – Help to buy a home
- State Revenue Office – Buying a property
- State Revenue Office – Homebuyer Fund
- State Revenue Office – First Home Owner
- State Revenue Office - Apply for a first home buyer duty exemption, concession or reduction
Disclaimer
Grants subject to State Government eligibility rules and criteria. DFC makes no warranties or representations regarding eligibility rules or criteria for any government grants. The advice, opinions and insights of this article are general in nature and based on DFC’s analysis of current market trends and government policy as of the date of publication. This article does not take into account your personal financial circumstances or objectives and may not always be entirely accurate, complete or current. We recommend speaking to an independent legal or financial advisor before making any binding decisions.