Rateseeker Property Round-Up: December 2025

Rates ease, listings climb, and first-home buyers get a major boost as the market closes out the year

December has arrived, and while the year is wrapping up, Australia’s property market certainly isn’t slowing down. With the RBA’s final cash rate announcement for 2025 due on 9 December and no cut expected this month, borrowers and buyers are preparing for a steady finish to the year. But beneath the calm, several meaningful shifts are shaping the months ahead.

Mortgage interest costs are continuing to fall, refinancing is hitting new records, the 5% Deposit Scheme expansion is reshaping the entry-level market, and listings are surging even as prices keep climbing. It’s an unusual mix of cooling pressures and heating demand, one that smart buyers and homeowners are quietly taking advantage of.

Here’s your full December property wrap.

Mortgage Costs Are Falling as Rates Ease

Borrowing pressures finally begin to ease for homeowners

After a tough couple of years, homeowners are finally getting a little breathing room. According to the Australian Bureau of Statistics, mortgage interest charges fell 1.4% in the June quarter and another 3.8% in the September quarter, both directly supported by the three cash-rate cuts delivered earlier in 2025.

These reductions may sound small, but even a slight movement in rates can translate into hundreds or thousands of dollars per year for the average mortgage holder.

Many borrowers are already capitalising on the savings by adjusting their financial strategies.

What homeowners are doing right now

• Rebuilding savings buffers. With cost-of-living pressures still present, many borrowers are using the savings to top up their emergency funds.
• Tipping extra into their loan. Those who can afford it are making extra repayments, a move that pays off quickly when rates fluctuate.
• Reviewing their home loan. The biggest gap right now isn’t between past and present, it’s between lenders. Some have moved aggressively after recent rate cuts, while others have barely shifted.

Why this matters

Even though rates have dropped, many Australians remain on loans priced for the old environment. If your bank hasn’t repriced your loan or contacted you proactively, there’s a strong chance you’re overpaying compared to current market levels.

This is what we often call the “lazy tax”: paying more simply because you haven’t checked.

A simple, quick check can show where you stand

If you want clarity, we can compare your current rate against today’s market and estimate how much you could save by staying with your lender, renegotiating, or switching.

Refinancing Hits a Record High

Australians are switching lenders in record numbers—and the savings explain why

ABS data shows external refinancing jumped 25.2% year-on-year in the September quarter, reaching its highest level ever recorded. But this surge isn’t driven by churn for the sake of churn. It’s driven by value.

After three rate cuts, lenders have repositioned themselves unevenly. Some passed on the reductions fully. Others moved only a little. The result? Two borrowers with identical loan sizes could now be paying dramatically different monthly amounts, sometimes hundreds of dollars apart.

Why borrowers are switching now

Borrowers emerging from older fixed rates or higher legacy variable rates are discovering real savings. A reduction of just 0.30–0.50 percentage points can free up thousands of dollars per year. For many households, that’s too significant to ignore.

Three things to know before refinancing

1. New-to-bank offers are typically much sharper.
Lenders are competing fiercely for new customers, often offering lower rates than what existing clients receive.

2. Some deals are moving quickly.
Because pricing is in flux, some competitive rates don’t stay on the table for long.

3. Your loan structure matters as much as your rate.
Offset accounts, repayment flexibility, redraw access, and fixed-vs-variable positioning all matter, sometimes even more than the headline rate.

If you want to understand your refinancing options or calculate potential savings, Rateseeker can run a detailed comparison and help ensure your new structure aligns with your long-term goals.

The 5% Deposit Scheme Expansion Is a Game-Changer for First-Home Buyers

Unlimited places, no income caps and rising demand at key price points

From 1 October, the government’s 5% Deposit Scheme underwent its most significant expansion since launch and the impact is already showing.

The scheme now offers unlimited places nationwide, with no income caps, and allows eligible first-home buyers to purchase with just a 5% deposit and no lenders’ mortgage insurance (LMI), provided the property sits under the price cap for their region.

Price caps vary significantly from $500,000 in regional SA to $1.5 million in Sydney but the sudden opening of the scheme means demand has accelerated across the country.

Why this expansion is so impactful

Previously, many high-earning couples or buyers with healthy incomes were excluded from accessing the scheme. With income caps removed, a new wave of functional high-capacity buyers has entered the market, particularly targeting townhouses and units near popular cap thresholds.

Flow-on market effects

• More competition in the $600k–$900k bracket. Especially in urban and metro-fringe areas.
• Faster-moving markets. Buyers with lower deposits can now act months or years earlier.
• Higher borrowing amounts. Not having to save 20% upfront frees buyers to enter sooner—but also means higher loan balances.

A word of caution

Just because you can buy with 5% doesn’t mean it’s automatically the best move. Affordability, buffers, and long-term financial comfort still matter.

If you want to check whether you’re eligible or see how repayments compare under the scheme, we can run tailored numbers for your situation.

Listings Surge While Prices Keep Climbing

A rare moment: supply is rising, yet demand is still outrunning it

October’s property data reveals a fascinating divergence. Usually, when listings surge, price growth slows. But not this time.

Australia’s median property price rose 1.1% in October, the strongest monthly gain since mid-2023, bringing three-month growth to 2.8%. According to Cotality, every capital city recorded an increase, and five reached new record highs.

At the same time, SQM Research reports:

• Total listings up 10.9% in October
• New listings up 18.2%

Under normal market conditions, this level of new supply would ease competition. But 2025 has been anything but normal.

What’s really happening?

Falling rates earlier this year boosted confidence and improved borrowing power, which means buyers are still acting quickly, even as more homes come to market. Demand is simply outpacing supply, especially for quality, well-located properties.

How smart buyers are responding

• Getting pre-approval sooner. Speed is becoming a competitive advantage.
• Expanding search boundaries. Adjoining suburbs often deliver better value.
• Stress-testing affordability at higher rates. A smart guardrail for unexpected future shifts.

With price momentum building and more properties hitting the market, the next few months may offer a rare sweet spot for buyers who are prepared and strategic.

What This Means Heading Into 2026

A shifting market, better affordability, and improving confidence

The combination of easing mortgage costs, expanded buying options, stronger supply and steady demand is creating a more dynamic environment than we’ve seen in recent years. While affordability challenges remain, the conditions heading into early 2026 are more balanced than they’ve been for some time.

Borrowers who act early, whether by reviewing their rate, refinancing, or preparing for a purchase, stand to benefit the most while lenders are still adjusting pricing and competition remains high.

If you’d like to understand your borrowing power, explore refinancing savings, or position yourself before the market moves again, Rateseeker can help you compare your options and plan with confidence.If you’d like help reviewing your loan, exploring 5% deposit options or checking how much you could save in today’s easing rate environment, reach out and we’ll look at your situation together. Talk to one of our experts now!