The Truth About Interest Rates: What First Home Buyers Need to Know for the Remainder of 2025

As we move through the second half of 2025, first home buyers are closely watching interest rates—and for good reason. Interest rates directly impact how much you can borrow, your loan repayments, and even which suburbs you can afford to buy in.

Here’s what every first home buyer should know to navigate the market confidently in the months ahead.

1. Interest Rates Are Easing… Slowly

After several years of increases, we’re starting to see signs of stability. In fact, economists and lenders are anticipating gradual cuts in the coming months. For buyers, this means:

• Improved borrowing capacity – you may qualify for a higher loan amount

• Lower monthly repayments – reducing your financial stress

• A renewed sense of market confidence – which can influence competition and pricing

Example: A 0.25% drop in rates could increase your borrowing power by $10,000 or more—potentially opening the door to more property options.

2. Waiting Might Cost You

While it’s tempting to wait for more cuts, doing so could mean facing greater competition or rising property prices. If the market heats up in response to lower rates, you may find yourself priced out of areas you could afford today.

If you’re financially ready, getting in sooner—while conditions are still in your favour—could give you the edge.

3. Choosing Between Fixed and Variable Loans

• Fixed-rate loans offer security and consistency in repayments

• Variable-rate loans offer flexibility and may decrease if rates fall further

Many buyers are opting for split loans—a combination of both—to manage risk while remaining adaptable.

4. A Pre-Approval Is Your Best Tool Right Now

A fully assessed pre-approval is more than just a guide—it’s your ticket to making offers with confidence. It shows real estate agents you’re serious, and it allows you to bid at auctions knowing your finances are already vetted.

Most pre-approvals last for 90 days—just enough time to shop smartly with peace of mind.

5. Why Using a Mortgage Broker Is a Smart Move

Not all lenders are created equal. Some banks might not offer you the best rate or loan product for your situation.

At Ascot Mortgage, we work for you—not the bank. Our job is to compare options across 30+ lenders, find the most competitive solution tailored to your goals, and help you build a strategy for success.

Even better? We don’t charge a service or engagement fee—many brokers do, but we don’t. Our focus is on solutions and service.

Final Word

Interest rates will continue to shape the property market for the rest of 2025—but they’re just one part of the equation. The most important factor is your personal readiness.

Book your free consultation today.