'Borrowers are breathing easier'
Australians are becoming more optimistic and keen to refinance as home loan interest rates begin to ease following the Reserve Bank of Australia (RBA)’s February interest rate cut, according to the Mortgage Choice Home Loan Report for the March 2025 quarter.
A third (33%) of respondents said they’re now more confident to purchase property thanks to the decline in home loan rates – up from just 23% in the previous quarter, and more than double the figure from this time last year.
“Borrowers are breathing easier,” said Mortgage Choice chief executive Anthony Waldron (pictured). “Inflation is easing, rates are softening, and Australians are once again seeing property as their path to financial security.”
Refinancing activity is therefore picking up, offering opportunities for brokers who reach out to their clients. The Mortgage Choice report showed a 30% year-on-year increase in the value of refinance loans, with activity especially pronounced in South Australia and the Northern Territory, where refinancing volumes rose 44.3%.
Credit: Mortgage Choice
With the RBA more than likely to cut rates again next Tuesday, Waldron anticipates refinancing activity will continue to accelerate.
He said: "Most borrowers are no longer taking a ‘set and forget’ approach. Brokers have a huge role to play in helping clients benchmark their current rate and refinance where it makes sense.”
Investor, first-home buyer activity on the up
Investor loans surged 18.5% year on year per the Mortgage Choice report, with NSW/ACT and Queensland experiencing gains of nearly 25%.
First-home buyers, meanwhile, contributed a 5.6% increase in loan numbers, with a 12.3% jump in the total value of those loans year-on-year.
The data shows that a fifth of Gen Z buyers are tapping the bank of mum and dad to help pay a deposit. “Our brokers tell us that many first home buyers can’t afford to buy in Sydney without a cash gift, and those gifts range in value from $10,000 to as much as $500,000,” noted Waldron.
WA leads loan growth
Nationally, the average loan size increased 8.1% to $628,684.
WA, despite still holding the lowest average loan value, posted the strongest growth at 12.3%, highlighting a broad-based recovery in buyer confidence.
74% of borrowers now review their home loan at least once a year – an encouraging stat for brokers, indicating clients are more engaged and likely to act on advice.
Credit: Mortgage Choice
“This is a powerful moment for brokers,” said Waldron. “The tools are in place – lower rates, strong equity growth, and better-informed borrowers. The opportunity now is to help more Australians take the next step in their property journey.”
