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WA launches build-to-rent scheme to boost rental stock
Western Australia unveiled a major build-to-rent (BTR) initiative aimed at easing the state’s rental crisis. The Build to Rent Kickstart Fund offers low- and no-interest loans to developers delivering large-scale rental projects, with minimum requirements around dwelling numbers, affordability, and long-term rental use. With up to 30 per cent of construction costs funded through concessional finance, the scheme was positioned as a catalyst for private investment. The announcement underscored the growing role of institutional rental housing and signalled WA’s intent to follow eastern states in accelerating BTR development.
CBA announces servicing changes
One of the most impactful policy shifts of the year came from Commonwealth Bank, which expanded its rental income policy to allow boarder income to be used in home loan serviceability. Owner-occupiers can now count up to $150 per week from one boarder, including first home buyers using government schemes. Brokers widely welcomed the move, describing it as progressive and a potential “game changer” for borrowing capacity. The change aligned CBA with NAB and highlighted how incremental policy tweaks can materially improve access to home ownership in a challenging affordability environment.
RBA hands down first rate cut of 2025
The Reserve Bank of Australia delivered its first interest rate cut since 2020, lowering the cash rate by 25 basis points to 4.10 per cent and providing modest relief for mortgage holders. While borrowers welcomed the move, economists cautioned against expecting a rapid easing cycle, pointing to ongoing global uncertainty and tight labour conditions. Brokers reported a surge in buyer and refinancing activity ahead of the decision, with January marking record loan submissions for some groups. With affordability still stretched, the cut was seen as a confidence boost rather than a trigger for runaway price growth.
Australia’s most promising property investment suburbs
At the start of the year, Broker Daily spotlighted REA Group’s Hot 100 suburbs for 2025, reflecting a resurgence in investor activity after subdued conditions. With investor lending commitments up 19 per cent, regional and outer-metro markets dominated the list, particularly across Western Australia and Queensland. Suburbs such as Broome, Rockhampton and Geraldton stood out for strong rental yields and price growth, while select Perth locations featured for unit performance. The analysis provided brokers and investors with timely insights into where demand, affordability and returns were aligning.
RBA cash rate reduced to 3.85%
The Reserve Bank of Australia delivered its second rate cut of 2025, lowering the cash rate to 3.85 per cent and reinforcing expectations of a gradual easing cycle. The decision, widely anticipated by the industry, followed softer inflation data and a slight lift in unemployment. Brokers and lenders prepared for heightened borrower activity, with improved borrowing capacity likely to spur refinancing and renewed buyer confidence. While the cut offered meaningful monthly savings for mortgage holders, economists and industry leaders cautioned that affordability challenges persist, with future price growth expected to be more subdued despite lower rates
Macquarie Bank pauses new lending to trusts and companies
Macquarie Bank sent shockwaves through the broker channel by announcing a pause on new home lending to trusts and companies. The lender cited rising application volumes, serviceability pressures, social media-driven structuring strategies, and looming anti-money laundering reforms as key drivers. While individual borrowers remained unaffected, the move highlighted growing scrutiny around complex lending structures and regulatory risk. Industry groups also pointed to broader concerns about speculative marketing and conflicted advice. The decision became a defining example of how compliance and capacity pressures can rapidly reshape lender policy.
ASIC cancels credit licence of NSW-based lender
Regulatory enforcement remained front of mind after ASIC cancelled the Australian credit licence of Auckland Finance Pty Ltd for failing to engage in credit activities. The action reinforced ASIC’s willingness to remove inactive or non-compliant operators from the market. The story also referenced broader licence cancellations tied to Compensation Scheme of Last Resort payments, including Ferratum Australia. Together, these cases highlighted the regulator’s tightening oversight of the credit sector and served as a reminder to brokers and lenders of the ongoing consequences of misconduct, inactivity, or unresolved consumer remediation.
Regional NSW areas flagged as prime for investment
Another widely read story examined why regional New South Wales was emerging as a key investment destination. Driven by affordability pressures in capital cities, infrastructure spending, population shifts and strong rental demand, many regional centres were attracting renewed investor interest. Brokers were encouraged to look beyond metropolitan Sydney and consider how lending strategies, policy settings and borrower profiles were evolving in these markets. The piece reflected a broader national theme for 2025: regional property’s growing role in investment portfolios and the opportunities it presents for advisers servicing diversified client needs.
Industry reacts to 5% deposit scheme
The federal government’s expansion of the Home Guarantee Scheme was one of the most debated housing policy announcements of the year. By allowing unlimited first home buyers to purchase with a 5 per cent deposit and no lenders mortgage insurance, the scheme promised to dramatically shorten deposit-saving timelines. Higher property price caps, particularly in Sydney, broadened eligibility, while the early start date added urgency to the spring market. Industry leaders broadly welcomed the move but warned of increased competition and upward price pressure, urging brokers to guide clients carefully through a more competitive buying landscape.
Give and take: ANZ updates policy, increases rates
ANZ made headlines by pairing more inclusive self-employed lending policies with an unexpected rate increase. The bank eased documentation and assessment requirements for business owners, freelancers and company directors, improving access to home loans for borrowers with complex income. However, this goodwill was offset by a rise in ANZ Plus variable rates for new customers and the removal of a cashback offer. The contrasting moves highlighted the balancing act lenders face between supporting underserved borrowers and protecting margins in a highly competitive and rate-sensitive environment.
Boost to Buy scheme to support Qld first home buyers
Queensland’s Boost to Buy shared equity scheme marked a significant state-led intervention to lift home ownership rates. By allowing eligible buyers to enter the market with as little as a 2 per cent deposit, supported by a government equity stake, the initiative aimed to help renters overcome deposit barriers. With generous income and property price caps, the scheme was designed to remain relevant in high-cost areas. Industry bodies praised the program as targeted and unlikely to distort the market, while acknowledging its potential to change thousands of lives.
CBA implements HECS debt lending assistance
The major bank’s overhaul of how HECS-HELP debt is assessed was a major win for younger borrowers. By excluding HECS debt due to be repaid within 12 months and softening serviceability buffers for debts nearing completion, the policy significantly lifted borrowing capacity for affected customers. The change followed regulatory guidance and was welcomed by brokers and industry groups, who argued repayment timelines should matter more than headline balances. The move was widely seen as a catalyst for other lenders to follow suit, opening the door to home ownership for thousands managing student debt.
Borrowers breathe sigh of relief as RBA cuts rates
The Reserve Bank of Australia delivered another widely anticipated 25 basis point rate cut at its August meeting, lowering the cash rate to 3.60 per cent and offering further relief to borrowers. With inflation easing into the target range, lenders were expected to pass on the reduction, translating into meaningful monthly savings and improved borrowing capacity. Industry leaders said the cut would lift confidence, boost refinancing activity and re-energise buyer demand, particularly among variable-rate borrowers. However, brokers cautioned that while sentiment is improving, rate cuts alone will not resolve broader affordability and credit access challenges.