As we enter the second quarter of 2025, Australia’s real estate market is navigating a complex landscape of economic uncertainty, housing undersupply, shifting interest rate expectations, and inflationary pressures. While prominent economists forecast rate cuts later in the year, there remains uncertainty. Nearly two-thirds of Australian real estate professionals expect house prices to rise in 2025. Leading Australian banks, Commonwealth Bank and ANZ, expect the cash rate to fall to around 3.35% by the end of 2025. If rate cuts occur, home loan borrowers would see great relief. On the other side, the federal government aims to make homeownership for working professionals more accessible. So, the conditions to get home ownership are favorable for nurses, chefs, public workers, and employees in various business sectors. However, property finance is a key concern for most nurses, chefs, public workers, and employees in diverse sectors. If you are planning to buy your first home in 2025, this blog may help you get affordable property finance.
Choosing The Property Finance: What the Salaried Professionals Should Look for in Affordable Property Finance
When it comes to property finance, there’s no one-size-fits-all. According to PropTrack, national home prices have risen 48% over the past five years. Increasing prices are bad news for renters, spending more on housing than those with mortgages. The nurses, chefs, public workers, and employees in diverse sectors have limited savings and earnings to be used as a deposit for getting an affordable home loan and repaying the loan at ease. Therefore, the selection of affordable finance becomes a strategic decision. So, what should professionals look for in affordable property finance?
- When you’re exploring good deals on a home mortgage, the interest rate matters.
- A home mortgage loan is a long-term debt, so even a small difference in interest matters over time.
- Get the shortest loan term you can afford.
- Focus on the lowest interest rate.
- In Australia, the average new home loan interest rate is currently around 6.24% p.a- money.com.au; 15 April 2025
- A free home loan repayment calculator may help you make an informed decision to choose affordable property finance.
- What’s the best loan for my situation? Principal-and-interest (P&I) loan or Interest Only (IO) loan
- Fixed-rate home loan or variable-rate home loan, or split loan
- Do I need Lenders Mortgage Insurance (LMI)?
- Does the loan have the desired features?
- The ability to pay off the loan early
Property Finance Options in 2025 for Nurses, Midwives, Chefs, and Public Workers
Source: APRA Monthly Authorised Deposit-taking Institution Statistics (December 2024)
Financial institutions tend to classify healthcare as a low-risk industry. As a prospective homebuyer, there are several options available. Several lenders offer tailored lending services for Nursing professionals seeking property finance. The LMI waiver program gives eligible registered nurses and midwives with a 10 per cent home deposit to avoid the LMI expense if they earn over $90,000 per annum (gross salary). Some lenders consider Nurses as essential service workers, so they accept 100% of your overtime income. Some lenders offer nurses and midwives discounted interest rates, compared with the market rates. To get special nurses and midwives’ home loan discounts, you need to borrow over $250,000.
Like the healthcare professionals, public servants too can get waivers on Lenders Mortgage Insurance (LMI) and special home loan interest rates. Public workers are viewed as generally lower risk, so banks often offer special rates on home loans. Most lenders tend to waive the LMI if you work in the public sector. You may borrow up to 85% LVR on your property without taking LMI. As a chef or public worker, you may get the following offers to make your home loan more affordable-
- Special discounts on your interest rate, generally, are not advertised to the public
- Exceptions to the credit policy are made because you are considered capable of repaying on time
- 85% LVR with NO LMI
- Possibility of borrowing a higher loan amount
In addition to the above concessions on home loans for nurses, midwives, chefs, and public workers, the Australian government also encourages and supports first home buyers by facilitating property finance through different schemes. Your buyer agent may help you leverage and compare the benefits of each affordable housing loan scheme.
- First Home Guarantee: The Government releases 35,000 First Home Guarantee places each year to support eligible first home buyers who have not purchased a property in the past 10 years with a deposit as low as 5%.
- Regional First Home Buyer Guarantee: 10,000 guarantees are issued each year to support eligible applicants living in regional areas to buy their first home in a regional area with a deposit as low as 5%.
- First Home Owner Grant (FHOG): The First Home Owner Grant (FHOG) is a one-off grant by the Federal Government, introduced to financially support first home buyers.
- First Home Super Saver (FHSS) Scheme: The First Home Super Saver (FHSS) scheme enables you to use your super savings to buy your first home. It encourages you to make voluntary contributions to your superannuation; the deposit amount can later be used as a deposit.
2025 Property Finance Trends that May Benefit Salaried First Home Buyers
The home loan affordability is not just about getting it, it is about repaying it without feeling financial strain.
- With interest rates expected to come down in 2025, borrowing for home buying may become more accessible for salaried people like nurses, midwives, chefs, and public workers.
- Home lending in Australia is concentrated around the ‘big four’ banks. The combined value of home loans with the major banks is almost three times that of all other banks in Australia combined.
- As rents continue to increase, an increasing number of tenants are reconsidering whether buying a home could offer greater stability.
- The government has lowered the 2025 permanent Migration Program cap to 185,000 for 2024–25. First home buyers, especially salaried workers looking for affordable housing, may get more options in regions previously dominated by high rental demand.
- The Accord initially set an initial aspirational target of one million new, well-located homes over 5 years from mid-2024. In 2025, first-home salaried buyers may find the property market offering more options at their working locations.
- Projected income growth and potential interest rate reductions could make saving for a deposit and securing a loan more achievable for professionals like nurses, chefs, public workers, and employees in diverse sectors.
So, are you ready to take your first step towards home ownership in 2025? Investmate, the knowledgeable, experienced, and reputed buyer agent in Melonba, NSW, may help you make your dream of home ownership true by providing data-driven local real estate market insights and turnkey tailored support. To start your journey towards affordable home ownership without experiencing financial strains, book a free consultation call or email to [email protected] or call 61421942049.
