Mortgage serviceability: how to jump through the hoops

Location, location, location. Or should we say: education, education, education. New research shows homes in the catchment areas of sought-after public schools can command six-figure price premiums. Here’s why. Your home can be much more than a roof over your head. It’s also an investment that may build personal wealth and serve as a form of disciplined saving. And a new analysis by Cotality (formerly CoreLogic) shows our homes can also play an unexpected role, such as helping our kids enjoy a decent education. Families pay 6-figure premiums for homes in popular catchment zones Cotality recently looked at property values inside high-performing public high school catchment zones in Sydney and Melbourne. It found what families around Australia have probably long suspected – that homes located inside catchment areas for popular public schools can command 6-figure premiums compared to similar properties outside the school zone. The willingness of families to pay more isn’t just about the kids being able to walk to school. Cotality says that while the price premium within popular public school zones can top $100,000, this can still see families saving money when compared to paying for private schooling over many years. Better still, unlike school fees, which tend to rise over time, mortgage repayments often decrease in real terms due to inflation. 3 ways your home (and home loan) could help with school costs Pulling up stumps and moving to a new home within a particular school catchment isn’t for everyone. Fortunately, there are other ways your home and mortgage could help fund a quality education. Here are three strategies you could consider. 1. Pay for school fees using an offset account An offset account is an at-call account linked to your home loan. Instead of earning separate interest on the offset account, the balance is deducted from (or ‘offset’ against) the value of your home loan when loan interest is calculated. If you have, say, $50,000 in the offset account, and a mortgage of $600,000, loan interest will be based on a balance of $550,000 instead of $600,000. In this way, an offset account can help you achieve two goals – providing a secure place to grow savings for your child’s education, while also helping you get ahead with your home loan. 2. Tap into home equity Home equity – the difference between the current market value of your home and your loan balance – can be put to work to achieve a variety of personal goals. With almost half (44.8%) of all suburbs across Australia now at record high values, you could have more home equity than you realise. One way to use equity is to request a loan top-up from your lender. We can explain what’s involved for your specific circumstances In general though, the decision to tap into home equity should be a cue to review your home loan. Refinancing to a new loan could see you save with a lower rate or access improved loan features – all while freeing up equity to pay for a place in the school of your choice. 3. Invest in a rental property A rental property may also help pay for your child’s education. Your tax advisor or accountant can explain if an investment property is a suitable choice for you. Broadly speaking though, the regular rent you receive, plus possible tax savings from negative gearing, and a rise in the property’s value over time (which can generate more equity to use) all have the potential to help you fund school costs down the track. Alternatively, you could also consider rentvesting. This can allow you to buy a more affordable property that’s outside your desired school’s catchment area, while renting a home to live in inside the catchment area. Keen to learn more? Paying education expenses can be challenging. But let’s face it, so can a mortgage if you overextend yourself. That’s why it can be important to assess your borrowing capacity before you go house hunting. We can help you work out how much you can comfortably borrow, which in turn, can help you buy a home in the catchment area of a school that you’d like to send your kids to. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

There’s a lot to love about buying a brand new home, and sales of recently constructed homes have increased 19% over the last quarter. We look at the pros and cons of buying a new home – and the financial incentives available to new home buyers. Fresh paint, spotless floor coverings and shiny new appliances. It’s easy to see the appeal of newly-built homes. And it turns out a growing number of Australians are choosing new homes. The Housing Industry Association says sales of new detached homes rose 18.8% in the three months to June 2025 compared to the previous quarter. It’s the strongest new home sales in almost three years. Despite new homes having loads of appeal, they can come with downsides. Here’s what to weigh up. The pluses of buying a newly built home The word ‘new’ says it all. As a new home buyer, everything in your property is squeaky clean – no outdated appliances, no dodgy décor – just a shiny new home built with modern lifestyles in mind. That’s not the only upside. A new home can offer other advantages: – Energy efficiency: new homes must be built to a high standard of energy efficiency. It can make a new home more comfortable, and provide savings on utility bills. – Lower repair/maintenance costs: buy a new home, and you can be fairly confident that repair and maintenance bills aren’t going to burn a hole in your wallet – in the early years at least. If repairs are required, the cost may be covered by the builder’s warranty. – Opportunities to customise: if you build a new home, you may have the opportunity to alter the layout, fittings, finishes and colour palette to suit your personal preferences. It can cost a lot less to make these changes during construction compared to renovating an older home to your taste. – High depreciation for investors: if you’re buying as an investor, a newly-built home can offer depreciation benefits, which could translate to tax savings. Possible drawbacks of new homes Property is usually a major purchase in your life. So it’s important to look beyond the appeal of a newly-minted home to decide if it’s right for you. Points to weigh up include: – The possibility of an outer suburban location: unless you decide to build on an in-fill site in an established suburb, newly built homes are most often found in outer suburbs. This sort of location won’t suit everyone. But if you can push past the growing pains of a new suburb (such as less established infrastructure), a freshly-built home may be more affordable than an established home in an inner suburb. – You may have a stressful wait: with an older home, you can usually move straight in after settlement. Buying a new home can mean waiting for construction to be completed and signed off by council. Anyone who’s watched Grand Designs can tell you the process can be extremely stressful, with building costs and timeline blowouts commonplace. You may also face delays and disputes when it comes to getting the builder to fix any defects. All this can mean paying rent longer than expected – or living in a tiny trailer onsite, as so often happens on Grand Designs. Government incentives for buying a new home Buyers of new homes may benefit from savings on stamp duty and government incentives. – First Home Owner Grant: this changes from state to state, so do your research here. But it is typically only available if you buy/build a new home (or in some states, a substantially renovated home). – Stamp duty incentives: stamp duty is usually based on the value of a property at the time of purchase. This being the case, buying land first and building later can mean savings on stamp duty. As home prices push higher, most Australian states including New South Wales, Victoria, Tasmania, Queensland and Western Australia, have made stamp duty concessions available to first home buyers, no matter whether you buy a new or established home. First home buyers in South Australia still need to buy/build a new home to be eligible for stamp duty savings. We can help explain your home loan options Finding a loan that matches your needs depends on whether you are buying land to build on later, opting for a house and land package, or purchasing a newly constructed home. Get in touch with us today to discuss your plans and we can run you through some funding options that could help you enjoy the benefits of owning a brand new home. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

If you haven’t checked your borrowing power recently, it might be worth another look. A lot has happened in 2025, and your borrowing capacity could be higher than you realise. It’s been a busy year on the money front. Tax cuts, a couple of rate cuts, and reductions in HECS debts have all potentially been a plus for our financial wellbeing. That’s not all that’s improved. There’s a decent chance your borrowing power has enjoyed a boost, which could make now a good time to revisit your borrowing capacity. What shapes your borrowing power? Your borrowing power, or as lenders like to call it – your borrowing capacity – is the amount a lender will let you borrow to buy a home. Each lender has their own way of calculating borrowing power. But it mainly boils down to three things: your income, your household expenses, and any other debts you may have that’ll need to be repaid alongside a home loan. The important thing to know is that your borrowing power isn’t set in cement. It can change over time, and recent months have seen several events that are likely to have increased your borrowing capacity. Here are 4 reasons why your borrowing power could be on the rise. 1. Interest rates have fallen Two official rate cuts this year have helped to lower home loan interest rates. This time a year ago, the average variable rate on new loans was about 6.3%. Today it’s closer to 5.8%. Lower rates mean lower monthly home loan repayments. This flows through to higher borrowing power. How much higher? Canstar says the February and May rate cuts could have added $23,000 to the borrowing power of a single person on the average wage. A couple may have seen their borrowing power increase by $40,000-$45,000. 2. Tax cuts have kicked in A year ago we were celebrating the arrival of Stage 3 tax cuts that put money back in our hip pockets. Tax cuts can have another happy side effect. Paying less tax can mean more after-tax income. This converts to higher borrowing power. The uptick can be surprisingly generous. According to Compare the Market, the Stage 3 tax cuts could mean a couple with no kids has seen a $47,000 increase in their borrowing capacity. 3. Wages are up Around 2.9 million Australians received a pay rise from the start of July thanks to a 3.5% increase in the National Minimum Wage and award wages. Even if you’re not covered by these wage rises, the boss may have agreed to give you a pay rise from 1 July. Or a new job could see you earning more. Talk to us to know how a bigger pay packet may have impacted your borrowing power. 4. Lenders are treating HECS-HELP debts differently In the past, lenders have typically included student debt – that’s HECS-HELP loans – in their loan serviceability calculations. In 2025 however, lenders have been given the flexibility to overlook HECS-HELP repayments as long as the outstanding student debt is close to being paid off. If this sounds like you, your borrowing power may now be higher than you expect. Steps you can take to potentially lift your borrowing power Keen to boost your borrowing capacity further? It may be done by following some, or all, of the steps below: Reduce regular expenses: lenders take household expenses into account when deciding how much you can borrow. Trimming back a few regular bills can make a difference to your borrowing power. Consider cutting back subscriptions for apps and streaming services, the gym, or shop around for cheaper power or phone plans. Cut your credit card limit: lenders assess your borrowing capacity based on your card’s credit limit, not the outstanding balance. As a rough guide, every $10,000 of credit card limit can reduce your borrowing power by about $50,000. If you’re not keen on cancelling a card altogether, consider contacting the card issuer to lower the credit limit. Keep a lid on other debts: the more you can cut back other debts, such as personal loans or car loans, the higher your borrowing power can be. Sure, it’s not easy paying down debt. But keep your eyes on the prize – it could take you closer to buying your first, or next, home. Get to know your number Just because you can borrow more, doesn’t mean you should borrow more. Even so, it’s always worth knowing your personal borrowing capacity – it’s a key number that can help you achieve your property goals. Get in touch if you’d like to find out your current borrowing power. We can share ways you can improve your borrowing capacity, and explain how you can make the most of it to apply for a loan that matches your needs. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Home owners hoping for rate relief in July may be disappointed, but it’s still possible to score a rate cut of your own by refinancing. Despite this, plenty of borrowers are sticking to an old loan – and it could be costing them. When it comes to rate cuts, nothing is certain until the Reserve Bank of Australia (RBA) wraps up its board meetings. We saw this in July, when a long line of pundits predicted a rate cut was almost a sure thing, only to see the RBA keep rates on hold due to concerns about an uncertain economic outlook. The good news is this hasn’t stopped tens of thousands of home owners negotiate a personal rate cut by refinancing. Refinancing ramps up in 2025 Recent figures from property settlement firm PEXA, show refinance volumes have rebounded, rising 12.5% over the year to March 2025 as borrowers chase lower rates. That’s seen thousands of home owners land a rate cut of their own, with the Australian Bureau of Statistics reporting over 65,000 home loans were refinanced in the first three months of 2025 alone. But it seems many are still missing out. A survey by Compare the Market shows 65% people who’ve had the same home loan for 3-plus years haven’t refinanced. And in today’s home loan market, a loan that was competitive back in the day may no longer be such a great match for your needs. Why think about switching? As we saw this month, there are no guarantees the RBA will bring future rate relief. That’s why it can be important to take a front-foot approach by getting in touch with us to compare your home loan options. This especially applies if you’ve had the same loan for several years, because there’s been plenty of action in the mortgage market lately. Mozo reports that some lenders have introduced rate cuts on their own, others have held back on official rate cuts, and a growing number are offering fixed-rate options starting with a ‘4’ (now there’s something we haven’t seen for a while!). Is refinancing right for you? Loyalty is a great quality – just perhaps not when it comes to home loans. Sticking with an old home loan can mean paying a higher interest rate than necessary, or missing out on improved loan features. If you and your loan have been together a while, call us to see if your home loan is still suitable for your needs – and if not, we can help you find one that is. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Growing a 20% deposit isn’t just challenging. It can be a (very) long slog. Fortunately, 50,000 new places in the popular 5% deposit Home Guarantee Scheme just opened up on July 1. Here’s how to secure your spot. Struggling to reach that seemingly mythical 20% milestone? You’re not alone. Property exchange platform PEXA says it can now take buyers more than a decade to save up a deposit for a home. Who’s got that sort of time? This is where the Home Guarantee Scheme (HGS) can come in. It allows first home buyers to enter the market with as little as a 5% deposit. The good news is that on the 1st of July, 50,000 new HGS places became available. How the 5% deposit first home buyer scheme works Instead of providing a cash payment, the HGS sees the federal government guarantee your home loan. In this way, the HGS offers a chance to buy a place of your own with just a 5% deposit – and pay zero lenders mortgage insurance (LMI). The savings on LMI alone can be worth tens of thousands of dollars. The real clincher is that it can take far less time to save a 5% deposit compared to pulling together a 20% deposit. And right now, time kind of matters. Home prices are projected to increase by 5.8% over the next 12 months, according to CoreLogic. HGS places are limited Given the potential benefits, it’s no surprise that over 230,000 first home buyers have already taken advantage of the HGS to achieve their goal of home ownership. However, only a limited number of HGS spots are available each year. That’s why it’s so exciting to see the extra 50,000 places become available on 1 July. These spots are spread across three different guarantees – 35,000 places for the First Home Guarantee, 10,000 for the Regional First Home Buyer Guarantee, and 5,000 for the Family Home Guarantee aimed at single parents. The fine print The HGS does come with eligibility criteria. If you’re unsure whether you’re eligible, get in touch and we can let you know if you’re eligible straight away. As a quick guide, singles have an income limit of $125,000, or up to $200,000 combined for a couple (this includes mates or siblings buying together). If your income is above this, the Albanese Government has pledged to expand the HGS by scrapping home buyer income limits in 2026. While the HGS also sets property price limits (these vary according to location), the scheme gives you the freedom to choose a new or established home, a house-and-land package or even an off-the-plan apartment. Get in touch Not surprisingly, HGS places can fill up fast. So if you don’t want to miss out on your spot, get in touch to find out if you’re eligible for this popular scheme that lets you buy with a 5% deposit and pay zero LMI. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Finding the property that’s right for you and your budget is an exciting milestone! But what happens next? We explain how to make an offer and seal the deal. Most of us buy a home only a handful of times in our lifetime. So it’s not surprising that plenty of buyers – from first-timers to home owners who purchased several years ago – are uncertain about the buying process. If you’re in the dark about how to make an offer on a property, read on as we break down the steps that can take you from house hunter to proud owner. 1. Talk to us first Before you make an offer on a home, you should be confident that you can actually follow through with the purchase. That’s why it’s important to call us first. We can explain your borrowing power, which together with your deposit, sets your buying budget. While some people prefer to have home loan pre-approval lined up before they start home-hunting, it’s not absolutely necessary. Once you’ve found the right property, however, you’ll likely want to get the ball rolling on the finance side of things straight away. That way your home loan can be ready in time for settlement. 2. Ask for a copy of the contract When you see a place you’re keen to buy, you can ask the selling agent for the sale contract. Then you can have it checked out by your solicitor or conveyancer. This shouldn’t take long. But it can alert you to any conditions that work in the seller’s favour and not yours. Any out-of-the-box conditions, such as a quick settlement, may not be a deal breaker – they may even be used as a bargaining chip in your price negotiations. 3. Know the market By now you will likely have checked out plenty of properties and carefully researched the local market. This will give you an idea of what similar homes in the area are selling for. These insights can give you an idea of what is a reasonable offer for the home you’re thinking of buying. 4. Consider trying for a discount Even if you think the property is fairly priced, it could still be worth trying for a discount. As a guide, CoreLogic says sellers are currently accepting a median discount of about 3.4%. On a home priced at, say, $600,000, that can add up to a saving of $20,400. But it does depend on the local market. Some areas are hotter than others. The main point is to stay within your buying budget. 5. Put your offer in writing When you’ve arrived at a price you’re comfortable with, put your offer in writing. It shows you’re a serious buyer. What follows may be some to-and-fro in price negotiations. When you and the seller reach a price you’re both happy with, you may be asked to pay a small holding deposit, often around 2.5% of the purchase price. This is not the same as the 10% you will usually be asked to pay when you and the seller sign the contract of sale to cement the purchase. Be sure to call us when your offer is accepted. We can confirm details of the property with your home loan lender and begin the process of finalising your loan. 6. Exchange contracts It can take a few days for the sale contract to be finalised. Use this time to check with the selling agent how you should pay the 10% contract deposit. When the contract is ready, you and the seller each sign a copy, then swap – or ‘exchange’ – contracts. Now’s the time to hand your 10% deposit to the selling agent. As your broker, we’ll stay in touch throughout the process. 7. The road to settlement It generally takes 30–90 days for the sale to settle – that’s when the property is transferred into your name. During this time, we’ll work behind the scenes to help ensure your home loan is ready to go on settlement day. And when you receive the keys to your new home, we’ll be in touch to help you celebrate! Want to find out more? Buying a home can seem complex (and scary). Rest assured though that we can help break down the steps involved. Call us to find out other ways we can help streamline your home-buying journey. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Here’s some warming news for winter – first home buyers are making a welcome return to the property market. Several factors suggest the stars may have aligned to make now a good time to take that first step on the property ladder. Growing numbers of first home buyers are entering the housing market, with NAB reporting lending to first home buyers has climbed 16% since February. It’s a big jump, and while the figures are based on data from just one lender, there are several good reasons why first home buyers are heading back to the market. To begin with, consumer sentiment is rising as cost-of-living pressures start to ease. There is also more confidence about ongoing interest rate relief: two-thirds of Australians expect home loan rates to be the same or even lower in a year’s time. Plenty of the big banks agree. Westpac, for instance, expects two more rate cuts this year, with more to follow in 2026. But there are other reasons why the time may be right for many first home buyers. Home prices expected to rise This month saw the Westpac–Melbourne Institute Index of House Price Expectations surge to its highest level since 2013. Put simply, more than three-quarters of consumers expect property prices to rise over the next 12 months. These expectations may not be far off the mark. CoreLogic reports that while home price growth has slowed overall, the rise in housing values is being led by the lower-priced sections of the market – which tend to be first home buyer territory. The upshot is that if you’re home loan-ready, buying a place of your own today might mean paying less than if you hold off for a few months. Help available for first home buyers Housing affordability can still be a challenge for many first home buyers. The good news is that first home buyers can tap into a wide range of support to help buy a place of their own. Various states have schemes to help first home buyers, including stamp duty exemptions/concessions or first home buyer grants. These can really help give you a leg up, so talk to us to know what’s available in your area. If you’re struggling to grow a deposit, ask us about the Home Guarantee Scheme. It enables first home buyers to purchase with just a 5% deposit without having to pay Lenders Mortgage Insurance. Listings are up Winter can be a quiet season for property, but not this year. According to CoreLogic, May saw a rebound in newly listed homes, with over 35,000 properties coming onto the market for sale in the four weeks to 1 June 2025. This is giving first home buyers even more choice. It could be your opportunity to find the property that is right for your needs and budget. Have the stars aligned for you? With so many potential upsides to take advantage of, it’s worth having a chat with us to know if you are in a position to buy your first home. Get in touch and we’ll help you assess your borrowing power and let you know if there are any first home buyer schemes you may be eligible for to help you buy sooner. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Property values nationally have passed a major milestone with the average home price pushing through the $1 million mark for the first time ever. Have you been putting off buying? If so, here’s how to get the ball rolling. Despite a cost-of-living crunch and several years of high interest rates, the Australian property market continues to break records. New figures from the Australian Bureau of Statistics (ABS) show home prices recently passed a key benchmark. The average home price nationally is now $1,002,500 – the first time it has topped $1 million. Here’s what it means for home buyers. Average home prices vary by location According to the ABS, a 0.7% rise in home prices nationally in the March 2025 quarter helped push the average price over the $1 million threshold. National numbers don’t always show the full picture though, and average home prices continue to vary widely between states. New South Wales has Australia’s highest average price of $1,245,900. That’s followed by Queensland ($944,700) and the ACT ($941,300). There’s not much separating average home prices in Victoria ($899,700), Western Australia ($874,200) and South Australia ($861,900). At the other end of the spectrum, Tasmania ($670,200) and the Northern Territory ($517,700) continue to be the more affordable states for housing. How are home prices likely to move from here? While the ABS data only extends to the end of March 2025, figures from CoreLogic show home prices have continued to climb higher. We’re even seeing a recovery in property values in areas such as Darwin, Hobart and Canberra, where price growth has been comparatively low in recent times. One of the key drivers for all this growth has been lower interest rates, which PropTrack says have improved market sentiment, boosted borrowing power and buoyed buyer confidence. Why buying now could be a good time If you’re thinking of buying a home, chances are you’re wondering “will home prices keep rising?” While it’s impossible to accurately predict the future, the general view appears to be that home prices are set to head higher. CoreLogic says the recent May rate cut is likely to have a “positive influence on housing values in June and through the rest of the year”. Meanwhile, the outlook from the team at PropTrack is that we are likely to see further price growth through the remainder of 2025 based on tight housing supply, targeted buyer incentives (such as first home buyer schemes) and population growth. Talk to us to get the ball rolling on your purchase plans They say the right time to buy a home is when you’re ready. But how do you really know when that is? If you’re interested in finding out, talk to us to understand your borrowing power, and get the ball rolling on a home loan that matches your needs. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

With winter temps falling, chances are your power bills will rise. This helps explain why buyers are willing to pay 14% extra for energy-efficient homes on average. Here’s how to give your place a ‘green premium’. There’s a lot to love about winter. Cosy nights in, warming mugs of hot chocolate, and maybe a trip to the snow. The downside is bigger power bills. With energy costs set to climb higher across many parts of the country, it’s not surprising that home buyers are increasingly looking for properties that deliver savings on power bills. And new research by Domain shows buyers are willing to pay 14.5% more for energy-efficient houses and 12% more for energy-efficient apartments on average – that equates to about $118,000 and $75,000 more, respectively. Here’s how to give your place an energy-efficient makeover. Our homes can be energy guzzlers According to Domain’s latest Sustainability in Property report, Australian homes consume around one-quarter (24%) of the nation’s electricity. It’s not because we forget to turn the lights off. Experts say most Aussie homes have “poor thermal performance”: our homes swelter in summer and shiver in winter. So, we turn to energy-hungry appliances to stay comfortable. Energy-efficient homes do the opposite. They reduce power consumption to save on energy bills, and enhance livability. Yet one-in-four Australians currently live in a home with zero energy-efficient features. What buyers want and what adds value Solar power, passive design elements and double-glazed windows consistently rank among the most sought-after features, delivering both lifestyle advantages and lower household running costs, according to Domain. North-facing homes also command a premium price tag as they provide maximum exposure to natural light and warmth during cooler months, and only 15% of Australian homes have a north-facing orientation. However, energy-efficient home improvements don’t have to be complex (or impossible, for those of you who don’t have a north-facing house). Something as simple as roof and ceiling insulation can cut heating and cooling costs by 45%. Bigger investments, such as installing rooftop solar, can be more affordable with the help of government grants, rebates and subsidies. And from 1 July 2025 the new Cheaper Home Batteries Program can reduce the cost of installing solar batteries by about 30%. Talk to us to know what’s available Whatever eco-features you consider, there are various ways you could fund your green improvements. A home loan top-up with your existing lender could help free up additional funds. Some lenders have ‘green loans’ specifically designed to fund energy-efficient improvements. You could even save on interest by refinancing to a lower-rate home loan. It can be a way to put your home equity to work while also increasing your home’s liveability and potentially its value. So get in touch for help funding a toastier winter and more pleasant summer. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.