Perth’s property market continues to move differently to much of the rest of Australia.
While some property markets have experienced softer conditions or slower growth, Perth has remained strong, with dwelling values continuing to rise and many homeowners seeing significant growth in their property value.
At the same time, the lending market is shifting. Interest rates remain a major pressure point for many households, but some lenders are adjusting offers to attract quality borrowers. That means homeowners may have more options than they realise, particularly if their property value has increased, their equity position has improved, or they have not reviewed their home loan in some time.
For Perth homeowners, investors and those considering their next property move, this creates an important question:
Is your current home loan still working as hard as it should be?
Perth property values have continued to rise
Perth has been one of Australia’s standout property markets, with strong growth across houses and units.
For existing homeowners, this may mean your financial position has changed more than you realise. Even if your income, household budget or loan balance has not changed significantly, your property value may have increased; and that can affect the way lenders assess your position.
This is where home equity becomes important.
Home equity is the difference between what your property is worth and what you still owe on your mortgage. As property values rise and your loan balance reduces over time, your equity may increase.
For some homeowners, that equity may help support future plans, such as:
- Refinancing
- Investing
- Renovating
- Upgrading
- Consolidating debt
- Reviewing their broader financial position
However, having equity does not automatically mean using it is the right move. It depends on your goals, your borrowing capacity, your loan structure and your ability to manage repayments comfortably.
Lenders are competing, even while rates remain high
Many borrowers assume they need to wait for an RBA rate cut before there is any reason to review their mortgage.
In reality, lenders can adjust their own rates, policies and offers independently of the cash rate. Some may reduce selected rates, sharpen offers for new borrowers, or provide more competitive pricing to attract quality applicants.
This means your current home loan may not be as competitive as it once was.
A loan that suited you when it was first established may no longer reflect your current position, especially if:
- Your property value has increased
- Your loan-to-value ratio has improved
- You have been with the same lender for several years
- You recently rolled off a fixed rate
- Your income, expenses or goals have changed
- You are considering your next property move
A home loan review can help you understand whether your current rate, loan structure and lender are still suitable.
Why reviewing your loan is about more than the interest rate
A lower interest rate can make a meaningful difference, but a good home loan review should look beyond the rate alone.
Your loan structure also matters.
Depending on your circumstances, it may be worth reviewing your repayment type, offset account, redraw access, fixed and variable split, loan term, investment lending structure and future borrowing capacity.
For example, a homeowner who wants to renovate may need a different lending structure to someone who wants to purchase an investment property. A borrower focused on reducing repayments may need a different approach to someone trying to build long-term wealth through property.
This is why it is important to review the full picture, not just the headline rate.
Could your equity support an investment property?
With Perth property values continuing to rise, some homeowners may be wondering whether they could use equity in their current home to purchase an investment property.
For some people, this may be possible. But it needs to be assessed carefully.
Before using equity to invest, it is important to understand how much usable equity may be available, how lenders will assess your borrowing capacity, what the repayments could look like, and whether the strategy aligns with your long-term goals.
It is also important to consider the structure of your loans. The way your lending is set up can affect cash flow, flexibility and your ability to make future decisions.
Using equity can be a useful strategy, but it should never be treated as a shortcut. The goal is not simply to borrow more. The goal is to make informed decisions that support your broader financial position.
Renovating, upgrading or consolidating debt
Using equity is not only relevant for property investors.
Some homeowners may consider accessing equity to renovate, upgrade their home or consolidate other debts. Each of these options comes with different considerations.
A renovation may improve lifestyle and potentially add value to a property, but the numbers need to be reviewed carefully. Upgrading to a new home may require a clear understanding of borrowing capacity, deposit requirements and cash flow. Debt consolidation may simplify repayments, but it can also extend debt over a longer loan term if not structured carefully.
The right answer depends on your personal circumstances.
Before making a decision, it is worth asking:
- What are we trying to achieve?
- How much equity do we actually have available?
- What will the repayments look like?
- Will this improve our position or simply increase our debt?
- Does this align with our broader financial plan?
Why July is a smart time to review your position
The start of a new financial year is a natural time to review your financial position.
For homeowners, this can include looking at your mortgage, repayments, property value, equity, cash flow and future goals.
July is also a practical time to check whether your loan still suits your needs before the year becomes busy. If your property has increased in value or you have not reviewed your home loan in the past 12 to 24 months, you may benefit from understanding what options are available.
You do not need to be ready to refinance, invest or upgrade immediately. Sometimes the most valuable outcome is simply having clarity.
A review can help you understand where you stand now and what may be possible in the future.
How Core Wealth Finance can help
At Core Wealth Finance, Natalie can help you review your current home loan, understand your equity position and compare lending options.
This may include looking at whether your current loan is still competitive, whether your structure still suits your goals, whether refinancing could improve your position, or whether your equity could support your next move.
Most importantly, a review gives you the information you need before making a bigger financial decision.
Perth property may be moving quickly, but your lending decisions should still be made carefully.
Ready to review your home loan?
If it has been a while since your last home loan review, now may be a good time to understand your options.
Whether you are thinking about refinancing, investing, renovating, upgrading, consolidating debt or simply reviewing your overall financial position, Natalie can help you explore what may be available.
Book a Finance & Lending Call with Natalie at Core Wealth Finance to review your current loan and see whether it still supports your next move.