As we move into September, it’s a good time for Australian expats to pause and reflect - not because of any looming deadlines, but simply as a matter of good financial housekeeping.

One shift we’re seeing in the home loan space is the quiet return of fixed-rate loans starting with a ‘4’. Meanwhile, most variable rates are still sitting in the ‘5s’. That’s a noticeable gap - and one that’s prompting a few questions from our clients about whether it’s time to consider fixing.

There’s no one-size-fits-all answer here.

It depends on your goals, your timeframe, and how you want your loan to behave.

Some things to consider:

• While further rate cuts from the Reserve Bank are still on the cards for 2025, there’s no guarantee. If cuts do happen, they’ll flow through to variable rates first - but with lenders already pricing some fixed loans below variable, the difference could take time to materialise.
• Fixed rates give you certainty. For families managing offshore school fees, multiple currencies or relocation plans, having predictable repayments can be a genuine advantage.
• Variable loans still provide more flexibility. Access to redraw and offset facilities can help with cash flow and give you options if circumstances change.

Rather than trying to ‘pick the bottom’, the better approach is to choose the structure that supports your wider goals:

Whether that’s building stability, freeing up cash flow, or simply keeping your future options open.

We're also seeing more conversations around property investment and first-time buying - especially in light of Australia’s ongoing rental pressures.

Data from SQM Research shows rents have risen another 4.2% over the past year, continuing a trend that started in 2021. That’s placing pressure on tenants, but for investors, it’s created stronger yields and rising income potential.

For expats who are renting but thinking about buying, here are three practical things we often discuss with clients:

• Building up your deposit – Not just for serviceability, but to give you more choice and better loan terms.
• Staying open on location – Sometimes the right first step isn’t your ‘forever’ home, but a solid investment in the right area.
• Understanding your borrowing power – It varies between lenders, and it’s worth having the numbers run properly before making decisions.

For those who already own and are looking at their next step, unlocking equity could be a way to move forward without tapping into cash. Depending on your current structure and goals, there may be room to act sooner than you think.

And finally, while it’s not tax season, September is still an excellent time to get organised. We often encourage our clients to take stock - especially if they’ve had recent changes in income, rental income, employment, or property plans.

Getting ahead now can help you make better decisions later on - whether that’s with your lending, your investment plans, or just your general peace of mind.

If you’d like to have a quick check-in on how things are tracking, we’re always happy to run the numbers or explore what might be possible.