Falling interest rates and new government incentives are fuelling a rise in first-home buyer demand, according to Bell Partners Finance, a brokerage with offices in Sydney CBD, Melbourne, Brisbane, Perth, Baulkham Hills, Newcastle and Tamworth.
Bell Partners Finance managing director Mark Stevenson (pictured) said the firm had seen a significant uptick in activity since the Reserve Bank of Australia’s latest rate move.
“Since the last interest rate cut by the Reserve Bank of Australia (RBA) in May, when the cash rate was lowered from 4.1% to 3.85%, our brokerages have seen a rise in activity from first-time buyers,” he said.
“With the potential for further interest rate cuts, possibly when the RBA next meets again in July, people who have been renting are exploring ways to buy their own home.”
Stevenson noted that further interest rate cuts were on the cards this year, creating renewed urgency among prospective buyers.
“Financial markets and many economists have been forecasting that the RBA could cut rates possibly three more times this year and bring the cash rate down to possibly 3.1%, where it hasn’t been for more than two and a half years,” he said.
Westpac chief economist Luci Ellis expects the RBA to ease gradually, with cuts in August and November, and two more in early 2026. She said the bank aims to “move cautiously and predictably,” warning that without further easing, Australia risks a “shaky handover” from public to private sector demand.
“While there is plenty of uncertainty about the global and political environment, many Australians still believe this is a good time to buy if they can,” Stevenson said.
Stevenson said new government schemes were helping renters and low-deposit buyers get onto the property ladder.
“Our brokerages have also had inquiry from buyers looking for finance to purchase new builds with the $30,000 First Homeowner Grants only being available for new properties,” he said.
Stevenson also welcomed upcoming changes to the federal government’s deposit rules.
“The recently re-elected federal Labor government has also pledged that from January 1, 2026, all first-home buyers will be able to purchase a home with only a 5% deposit without requiring expensive lenders’ mortgage insurance,” he said.
Queensland’s new property incentives are also proving popular with first-home buyers, according to Bell Partners Finance.
“In Queensland, they have scrapped stamp duty for first-home buyers purchasing a new build, removing a hefty cost for people looking to enter the property market,” Stevenson said.
“A Boost to Buy scheme will also see the Queensland government contribute 30% equity for new builds and 25% for existing homes, for properties up to the value of $1 million for eligible first-home buyers.”
