Here’s a quick property and home loan update update to get you up to speed with what’s been happening in the mortgage and property market this month, and what it means for you if you’re buying, refinancing, or already paying off a home loan.
As enter the second half of the year, things are getting interesting both with property stock levels, price fluctuations and the obvious one – speculation that interest rates will finally start to come down.
RBA Keeps the Cash Rate at 3.85%
In early July, the Reserve Bank of Australia (RBA) decided keep interest rates on hold. The cash rate remains at 3.85%.
Why?
- Inflation is slowing but not fast enough.
- Unemployment is rising slightly (now 4.3%).
- The RBA is being cautious and waiting to see more data before making a move.
What this means for you:
- If you’re on a variable rate, your repayments stay the same for now.
- If you’re shopping around or refinancing, keep an eye on the RBA’s next meeting in August. Economists expect the RBA to cut rates next month, which could save you money. To get a head start, speak to us now to get an idea of what you need to organise if you’re wanting a pre-approval or to refinance your home loan.
APRA Keeps the 3% Buffer for Loan Applications
APRA (the banking regulator) announced it will keep the 3% mortgage serviceability buffer in place.
This means when you apply for a loan, banks must check that you can still repay it if interest rates went up by the nominal figure of 3%.
Impact:
- It protects people from borrowing more than they can afford.
- It also limits how much you can borrow – especially if you’re a first home buyer or upgrading.
No changes for now, but the buffer could be reviewed later in the year if conditions improve.
Perth Property Market: Units Are in Demand
According to REIWA, Perth’s property market continues to be strong:
- House prices are up around 10% over the past year.
- Unit prices are growing even faster—up to 15% in some areas.
- Many buyers are turning to units and apartments for affordability and lifestyle reasons.
Rental market:
- Weekly listings are up slightly but still low overall.
- This keeps rental prices high and vacancies low – good news for investors.
You can read more here about investment property loans.
Or contact us today to kick start your application to buy an investment property.
Other Industry Trends to Watch
- Lenders are adjusting both fixed and variable rates as they prepare for a possible RBA rate cut in August.
- Inflation is coming down (currently around 2.4%), making it more likely that rates will fall soon.
- Consumer confidence dropped after the RBA’s July decision—not cutting rates disappointed many mortgage holders.
✅ What Should You Do?
| If you are a… | What to keep in mind |
|---|---|
| Variable-rate borrower | Your rate hasn’t changed yet—review it before August. |
| Refinancer | Talk to a broker now so you’re ready when rates fall. |
| First home buyer | Check your borrowing capacity and arrange a pre-approval. |
| Investor | Unit demand is rising – do your research on hot spots in Australia. |
| Homeowner | Plan for stable repayments now; review your options after the next RBA update. |
What’s Next?
The RBA meets again on August 12, and many experts are tipping a rate cut. If it happens, we’ll likely see lenders adjust their rates soon after.
In the meantime, now is a great time to:
✔️ Review your current mortgage
✔️ Explore refinancing options
✔️ Talk to a broker about what’s possible and how you can prepare
Want help navigating the latest changes? Feel free to reach out to one of Perth’s best mortgage brokers, we’re here to help you make smart decisions for your financial future.
