Perth Mortgage Broker Insights: Trends in Home Lending & Interest Rate Strategy for 2025

In 2025, Perth continues to lead the nation in housing activity. Median dwelling values have risen significantly year-on-year, positioning Perth as one of the strongest markets in Australia. While growth has moderated compared to 2024, the projected annual increase of 4–6% through 2025 reflects a stable, resilient housing sector.

1. Interest Rate Outlook & Borrowing Strategy

• Current lending environment: Average new variable home loan rates sit around 6.00% per annum. Fixed-rate options for up to three years are available at slightly lower rates, averaging approximately 5.76%.
  
• Rate-cut expectations: Major banks forecast between two and four quarter-point rate cuts by the end of 2025. Some lenders have already begun adjusting their rates in anticipation of monetary easing.
  
• Strategic response: Borrowers are increasingly locking in short-term fixed rates to secure repayment certainty while remaining positioned to benefit from future reductions. Others are maintaining higher repayments on variable loans to accelerate principal reduction and build equity.
  

2. Lending Policies & First-Home Buyer Behaviour

• Deposit strategies: More first-home buyers are entering the market with lower deposits—typically 8–10%—supported by federal initiatives such as the Home Guarantee Scheme. Arrears remain low, indicating that risk is being effectively managed.
  
• Government support: Policy changes from January 2026 will expand eligibility under the Home Guarantee Scheme, removing income caps and increasing annual placements to 80,000—enhancing access for many Perth residents.
  
• Emerging trends: A growing number of first-home buyers are adopting ‘rent-vesting’ strategies, purchasing investment properties while continuing to rent in preferred lifestyle locations. This is helping more people access the property market without compromising location preferences.
  

3. Market & Credit Trends

• Loan growth dynamics: While national first-home buyer loan commitments saw a minor dip in early 2025, activity in Perth remains relatively steady. Borrowers are taking a more measured approach, reflecting cautious optimism.
  
• Affordability & supply: Price-to-income ratios remain a concern in some segments, but a gradual increase in new listings is helping to balance demand. Perth’s affordability advantage compared to other capitals continues to attract both investors and owner-occupiers.
  

Advising Perth Borrowers & First-Home Buyers

1. Lock in early: Consider short-term fixed rates before further changes in lending markets reduce availability.
   
2. Plan for reductions: Variable-rate borrowers may benefit from forecasted RBA rate cuts later in 2025.
   
3. Leverage incentives: Government guarantee schemes can significantly lower the deposit barrier.
   
4. Explore rent-vesting: Ideal for those aiming to enter the market while maintaining lifestyle flexibility.
   
5. Build repayment buffers: Paying above the minimum can accelerate equity growth and provide protection against future changes.
   

Why Seek a Mortgage Broker Perth & Mortgage Broker Company Perth?

Engaging a professional mortgage broker in Perth ensures tailored advice, access to exclusive lender deals, and a clearer path through the lending process. A local mortgage broker company Perth offers the added benefit of understanding specific regional market conditions, giving clients a competitive edge whether entering the market or refinancing.

Conclusion

The Perth home loan landscape in 2025 is defined by easing rate expectations, expanded government support, and stable property growth. Whether you’re a first-home buyer or an investor, aligning your strategy with current trends—and partnering with a qualified mortgage broker—can deliver long-term financial confidence in a shifting market.