Many Australians are turning their sights to 2025, eyeing a potential home purchase or property investment. Whether you’re a first-time buyer or a seasoned investor, it’s essential to consider multiple factors, and ensuring you’re making the right investment for your goals.
To help with your decision making and plan ahead, Bluestone Home Loans has put together this guide that includes:
- How to navigate the Australian property market
- Latest property insights and tips
- Assessing your financial situation
- Factors impacting your home loan
- When you should engage with a broker
- Choosing the best home loan for you
Navigating the current market: What’s on the horizon for 2025?
Understanding the current market landscape can make all the difference in your property-buying journey. Australia’s housing sector continues to respond to various global and domestic economic factors. Here are a few trends to consider:
- Property price movements: In 2024, we saw fluctuations in property prices across major cities. There was considerable growth in Adelaide, Perth and Brisbane, while Sydney rose 3.5% and Melbourne dipped 2.2%.
As we approach 2025, these changes will continue, particularly in response to potential shifts in interest rates. Property price trends could influence the type of property you can afford, so staying informed about which areas are appreciating or stabilising may help guide your choices. - Interest rate trends: The Reserve Bank of Australia (RBA) has increased interest rates over recent years in response to inflation, affecting affordability for homebuyers and investors.
While there’s confidence that the RBA will slowly begin to lower interest rates in 2025, staying on top of these trends can help you time your purchase strategically—an essential factor when considering the impact of loan repayments on your budget. - Government incentives: Various grants and schemes for first-home buyers may be available, such as the First Home Guarantee, designed to help more Australians enter the property market with a smaller deposit.
Keeping an eye on updates to these programs can provide significant savings and access to property in highly competitive areas.
Checking your financial situation: Are you prepared to enter the property market?
Before you start looking for your dream property, it’s essential to review your financial health. Here are some practical steps to help you assess your readiness:
Assess your savings: Start by calculating the deposit and additional costs, including stamp duty, legal fees, and moving expenses. While a 20% deposit can secure better loan terms, some lenders, including the team at Bluestone, offer low-deposit options to support those with smaller down payments.
Evaluate debt levels: If you have existing debts, such as credit cards or personal loans, consider paying these down to improve your borrowing capacity. Bluestone’s debt consolidation solutions can also help reduce multiple debts into a single payment, which could improve your loan eligibility.
Review your credit score: Your credit history plays a big role in securing a loan. Check your credit score early on, and if you have credit impairments, don’t worry—Bluestone offers near-prime and specialist loans, looking beyond just credit scores to assess each borrower’s full financial picture.
Ensure a stable income: Lenders assess your ability to manage loan repayments based on your employment history and income stability. For those who are self-employed or have multiple income streams, Bluestone’s Alt-doc loans are designed to support applicants who may not fit traditional income verification requirements.
What factors may impact your home loan application?
Knowing what lenders look for can help you strengthen your application and save you valuable time and money. Generally, lenders focus on four primary factors when looking at your eligibility for a mortgage.
- Income and employment: A stable job history and consistent income provide reassurance to lenders about your ability to repay the loan. However, Bluestone’s flexible loan options support applicants with unique income sources, such as freelancers or business owners.
- Credit score: Credit scores are used as a benchmark to assess risk to lenders, but Bluestone evaluates each applicant’s entire financial profile, providing options for those with past credit issues.
- Existing debt and financial commitments: Lenders review your current debt load to ensure you can manage additional repayments. Taking steps to lower debt balances on credit cards, car loans and any personal loans can positively impact your application.
- Deposit size: A larger deposit can increase your borrowing power and reduce the need for Lenders Mortgage Insurance (LMI). For borrowers with smaller deposits, Bluestone’s low-deposit options can help you get into the property market sooner or refinance to grow your property portfolio.
By proactively addressing these factors, you can improve your borrowing power and make your application as strong as possible to start your 2025 home buying journey with confidence.
When should you engage with a mortgage broker?
While some buyers wait until they’re 100% ready to apply for a loan before reaching out to a broker, starting early has its advantages. Here are three possible scenarios that it’s time to speak with a broker:
- You have a clear idea of your budget: If you’ve assessed your finances and set a property budget, a broker can help determine your borrowing capacity and match you with the best lender options.
- You’re ready to narrow down properties: Once you’re actively searching for a property, an experienced broker can help clarify your financing options and support your decision-making with current loan offers and rates.
- You have a complex financial situation: Whether you’re self-employed, have multiple income streams, or are dealing with credit issues, a mortgage broker can provide valuable guidance on navigating these challenges.
Bluestone brokers are available to help you navigate the loan process, especially if you’re managing a complex financial situation. They’ll walk you through the steps to secure a loan tailored to your needs.
Why consider Bluestone Home Loans for your 2025 property?
As a non-bank lender, Bluestone Home Loans offers a range of flexible solutions to support borrowers across different financial situations. Whether you’re self-employed, need help consolidating debts, or have credit impairments, we’re committed to working with you to find a pathway to homeownership.
Debt consolidation: If managing multiple debts is impacting your borrowing power, Bluestone can help you consolidate debts, making it easier to qualify for a home loan.
Near-prime and specialist loans: For applicants with credit challenges, Bluestone offers near-prime loans, which provide financing options that traditional banks may not.
Alt-doc loans for self-employed borrowers: If you’re self-employed, Bluestone’s Alt-doc loans offer flexibility in income verification, allowing you to use alternative documentation to support your application.
Bluestone’s tailored approach means we can work with you to understand your entire financial profile and provide options that make homeownership or property investment possible.
Our range of specialist products ensures more Australians have the chance to secure a loan and purchase their dream home or investment property. If you’ve been rejected by traditional lenders or need more flexible options, our customised products are designed with borrowers like you in mind.
Starting your property journey with the right guidance and resources can set you up for a successful purchase in 2025. If you have any questions about your financial situation or want to explore tailored loan solutions, our team is ready to help!
