Edited: 15th April 2026
TL;DR
- The best time to buy is determined by your personal financial readiness more than market conditions — stable income, manageable debts, a saved deposit, and repayments you could sustain if rates rose by 1–2% are stronger indicators than any market forecast.
- Waiting for ideal conditions has a real cost: rent paid builds no equity, prices in supply-constrained markets tend to recover, and government schemes like the First Home Guarantee and Family Home Guarantee may not always be available or accessible at the same terms.
- Beyond the deposit, upfront costs including stamp duty, legal fees, and building inspections need to be budgeted separately — and buying only makes long-term financial sense if you plan to hold the property for at least three to five years to offset those entry costs.
- Rentvesting — buying in an affordable area while renting where you want to live — is worth considering if your target market is out of reach, but it carries its own financing and lifestyle trade-offs that need to be modelled carefully before committing.
People often ask if now is the right time to buy a house. But the better question is—is it the right time for you? Property prices change. Interest rates go up and down. Government schemes come and go. Timing the property market perfectly is difficult and may not always lead to better results.
In this guide, Shern Advisory will help you focus on what really matters. We’ll help you understand the current market, what lenders typically consider, and how to assess whether now might be the right time for you to buy.
Buying a home is not just about numbers. It’s also about your lifestyle, your goals, and having the right support to make smart decisions with confidence.
Is Now a Good Time to Buy a House in Australia?
The 2025 property market has presented a mix of caution and opportunity. While interest rates remain higher than in previous years, property prices have eased in some areas, giving first-home buyers a potential opening to enter the market.
Regional areas and outer suburbs are beginning to stabilise, while demand in some capital city neighbourhoods remains steady. The Reserve Bank of Australia has taken a cautious approach to further rate increases, holding steady as it monitors economic conditions. In response, many lenders have adjusted their loan products to stay competitive. This means there may still be suitable home loan options available, especially if you take the time to compare what different lenders are offering.
But here’s the truth: it’s not just about timing the market.
Waiting for prices or rates to change may delay your plans and limit your ability to act when the right property becomes available. Instead, it’s often more practical to focus on your own financial position and long-term goals.
Should You Wait or Buy Now? A Simple Comparison
There’s plenty of discussion around whether now is a good time to buy a home. The truth is, it really depends on your personal situation. To help you weigh it up, here’s a quick look at some of the potential pros and cons:
| Reason to Buy Now | Reason to Wait |
| Less buyer competition | Potential interest rate cuts in future |
| Greater choice of listings | More time to save a larger deposit |
| Access to government schemes | Market stability may improve later |
| Lock in today’s prices before another rise | Time to improve credit profile or job situation |
The right decision often comes down to weighing current market conditions against your long-term financial position and readiness. Taking the time to understand both sides can help you move forward with greater clarity.
Things to Consider Before Buying a Home
If you’re weighing up whether to buy a home now or wait, it’s important to look beyond headlines and consider what truly matters for your situation. Here are a few key factors to think through carefully:
- Interest Rates – Shifts in interest rates can influence your borrowing capacity and repayments. Waiting for better conditions may not always lead to a better outcome, especially if property prices continue to rise.
- Your Financial Position – If you have stable income, manageable debts, and a deposit saved, you may already be in a solid position to buy.
- The Cost of Waiting – Rent payments add up. If you’re spending thousands each year on rent, that money could be going toward your own home and building equity.
- Lifestyle and Long-Term Plans – If you’re settled and planning to stay in one place for a few years, owning a home could offer more security and stability.
Signs You’re Ready to Buy Your Home
Sometimes, the signs are clearer than you think. If you’ve been seriously considering homeownership, here are a few indicators that suggest you might be ready to take the next step:
✅ You’ve saved a deposit of at least 5–20%, or you have support from a guarantor
✅ You’re earning a stable income and have manageable debts
✅ You’ve spoken to a mortgage broker and understand your borrowing power
✅ You’re eligible for government grants or stamp duty concessions
✅ You’ve done your homework on the suburbs and property types you can afford
Tip: Lenders often look favourably on renters with a solid history of consistent payments, even if you have not saved a full 20% deposit. Keeping clear records of your rental payments and savings habits may help strengthen your home loan application.
Government Schemes That Could Help You Buy Sooner
If you’re a first-home buyer or a single parent, buying now could mean taking advantage of financial support that may not be available later. These government schemes aim to reduce upfront costs and may provide valuable support if you are eligible and ready to buy.
- First Home Guarantee – Buy with as little as a 5% deposit without paying lenders mortgage insurance (LMI).
- Family Home Guarantee – Eligible single parents can buy with just a 2% deposit, making homeownership more accessible.
- First Home Owner Grant (FHOG) – A one-off grant for eligible buyers purchasing a newly built home, available in most states and territories.
- Stamp duty concessions are available in several states, including Victoria, New South Wales and Queensland, and can reduce or even eliminate the amount payable for eligible buyers.
How Buying a House Works: A Simple Guide
It’s completely normal to feel unsure about buying your first home, but learning how the process works can make the experience feel more straightforward and manageable. Here’s a simplified guide to help you navigate the process:
1. Save for a Deposit
Start by setting a savings goal based on the type of property you want to buy. A deposit of 20% or more is ideal, as it can help you avoid paying LMI. However, some lenders accept deposits from as little as 5%, depending on your situation. Be sure to factor in additional costs too, such as stamp duty, legal fees, building inspections, and moving expenses.
2. Work Out What You Can Afford
Think about your income, current expenses, and any existing debts. You can use mortgage calculators to get an idea of how much you might be able to borrow and what your repayments could be. It is also important to consider whether you could still manage those repayments if interest rates were to increase.
3. Speak with a Mortgage Broker
A mortgage broker can explain your options, compare loan products across lenders, and support you throughout the application process. They work with your best interests in mind and make it easier to understand the fine print, including loan features, fees, and repayment structures.
4. Get Pre-Approval
Pre-approval gives you a clear idea of how much you can spend. It can reassure sellers and agents that you are ready to move forward, while helping you focus on properties that match your budget. Pre-approval usually lasts between three to six months, depending on the lender.
5. Start Your Property Search
With pre-approval sorted, you can confidently begin looking for properties that suit your lifestyle and budget. Consider the location, property type, future growth potential, and local amenities. This is also the time to attend inspections and speak with agents.
6. Make an Offer and Organise Inspections
Once you find the right place, you can make an offer. This may be subject to certain conditions, such as finance approval or a satisfactory building and pest inspection. It is a good idea to organise professional inspections to identify any issues before you commit.
7. Finalise Your Home Loan
Once your offer is accepted, the lender may carry out a final review of your financial details and the property before moving ahead with the loan approval. Your mortgage broker will help you provide any remaining documents and meet the loan conditions so everything stays on track.
8. Settlement and Moving In
At settlement, the legal transfer of ownership takes place, and the funds are released to the seller. You will receive the keys and officially become a homeowner. Be sure to have insurance in place and update your budget to reflect your new repayments and ongoing costs.
Need help getting started? Speak with our experienced mortgage brokers to explore your options and take the next step toward owning your own home.
Should You Rent or Buy a Home?
There is no single answer that works for everyone. Deciding whether to rent or buy often comes down to your finances, lifestyle goals, and long-term plans.
Buying a home may help you build equity over time, especially if property values rise. It can provide stability and long-term financial benefits, although it also involves extra costs such as maintenance, council rates, and insurance. Renting, on the other hand, offers more flexibility, lower upfront expenses, and fewer responsibilities, which may be more suitable if you are not ready to settle in one place or expect changes in your circumstances.
Some people choose to rentvest, a strategy where you buy a property in a more affordable area while continuing to rent in a location that better suits your lifestyle.
If you are considering both options, take time to compare the financial implications, lifestyle considerations, and what feels most aligned with your current goals.
Questions to Ask Yourself Before You Decide
Before you move forward with buying a home, it is worth taking a step back to reflect on whether the timing and circumstances are right for you. Asking yourself the following questions can help you make a more confident and informed decision:
Can I afford the repayments if interest rates rise by one or two per cent?
Home loan rates can change over time. It is important to know whether your budget can handle an increase without putting pressure on your everyday expenses.
Have I factored in all the upfront costs?
Beyond your deposit, you will need to budget for stamp duty, legal and conveyancing fees, building and pest inspections, and moving expenses. These can add up quickly, so it is best to be prepared.
Am I planning to live in the property for at least three to five years?
Buying a home is usually a better option when you plan to stay put for a while. This gives the property time to grow in value and helps offset the upfront costs of buying.
Do I feel both financially and emotionally ready to become a homeowner?
Owning a home can offer stability and long-term benefits, but it also comes with ongoing responsibilities. Make sure you feel prepared to manage both the costs and the commitment.
Have I explored all my loan options, grants, and support schemes?
There may be government assistance available to help with your deposit or reduce your upfront costs. Taking the time to research what you are eligible for could make a real difference.
Spending a little time on these questions now can help you avoid costly surprises later and give you a clearer sense of whether buying a home is the right next step for you.
Final Thoughts: The Right Time Depends on You
After looking at the market, your financial position, and the support available to buyers, it becomes clear that the best time to buy a home is different for everyone.
It is not just about property prices or interest rates. It is about whether you feel ready to make the move and have the right guidance to help you do it well. When you understand your options and feel confident in your plan, the process becomes much more manageable.
If you are thinking about buying, our mortgage brokers in Melbourne are here to help you explore your options, understand your borrowing power, and create a clear plan to move forward with confidence.
The right time to buy starts with the right support. Let AxJ Finance Brokers guide you every step of the way.
Frequently Asked Questions (FAQs)
There is no ideal age that suits everyone. Some people buy in their twenties, while others wait until their thirties or later. The best time to buy a home is when you feel financially stable, have long-term plans, and are ready for the responsibilities of owning property.
Waiting for rates to fall can be uncertain, and there is no guarantee they will decrease soon. If you are financially ready and have found a home that suits your needs, buying now could still be a smart decision, especially if property prices are expected to rise.
For a $300,000 home, a twenty per cent deposit is $60,000. However, many lenders allow you to buy with a deposit as low as five per cent, which is $15,000. Keep in mind that a smaller deposit may come with extra costs such as lenders mortgage insurance.
If buying in your preferred suburb is not realistic, you might consider nearby areas or regional towns with more affordable homes. Another option is rentvesting, where you buy in an affordable location while continuing to rent in an area you enjoy living in.
As of 2025, the average new home loan amount in Australia is close to $600,000. This varies between states, with higher averages in New South Wales and Victoria, and lower averages in regional and smaller markets.
The major banks expect the Reserve Bank of Australia to keep the cash rate steady for most of 2025. Some forecasts suggest that rate cuts may be possible later in the year if inflation continues to slow, but this will depend on economic trends.
A major crash is unlikely. While some areas may see price adjustments, the overall market has remained strong due to limited housing supply, strong population growth, and steady demand from buyers.
The right time to buy is when you feel financially and emotionally prepared. Having a steady income, a deposit saved, and a clear plan for your future are all signs you might be ready. Market conditions matter, but personal readiness is often more important.
Buying with someone else can be a helpful way to share costs and increase your borrowing power. Just make sure to have clear legal agreements in place so everyone understands their rights and responsibilities before moving forward.
Most lenders require at least five per cent of the property price as a deposit. Some buyers may be able to access government support or guarantees that allow them to buy with even less. However, the more you can save, the more options you may have.