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Well, that’s almost a wrap on 2025 and what a year it’s been for the property market.

Let’s take a look at some of the highlights from 2025 and see what aspiring property purchasers can expect from 2026.

Looking back on 2025

Interest rates came down

The Reserve Bank of Australia (RBA) started the year with a bang, with a cash rate cut in February of 0.25% to 4.10%.

Rates held steady in April, but borrowers celebrated again in May, when the RBA cut the cash rate a further 0.25% to 3.85%.

The third and final cash rate cut for the year came in August, when the RBA reduced it by 0.25% to 3.60%. Since then, the cash rate has remained on hold.

Inflation

Inflation has taken Australians on a bit of a rollercoaster ride this year. It kicked off 2025 at 2.4% in the March quarter, easing to 2.1% by June – a welcome sign that things were stabilising.

But the calm didn’t last for long. By September, inflation had climbed back up to 3.2%, with the Consumer Price Index rising 1.3% for the quarter, which was the sharpest quarterly increase since March 2023.

Then came October, when inflation jumped again to 3.8%, signalling renewed pressure across the economy.

Considering the RBA’s target band of 2–3%, this upward trend is far from ideal and continues to shape both economic policy and household budgets.

Property prices

Property prices across Australia soared throughout 2025, driven by rate cuts, low supply and government incentives.

By October, Australia’s home value growth hit the fastest pace in more than two years throughout the month, surging 1.1%, according to Cotality. That marked the strongest monthly gain since June 2023 and pushed the annual growth rate to 6.1%.

Prices continued their upward trend in November, rising 1% nationally and pushing year-to-date growth up to 7.7%.

Overall, national dwelling values are set to close 2025 at least 8% higher. Darwin, Brisbane and Perth were Australia’s top-performing capitals, outpacing Sydney and Melbourne.

New housing initiatives

Government incentives designed to help more Australians get into the market moved the goal posts in 2025.

From October, the Australian Government’s 5% Home Guarantee Deposit Scheme was expanded to include all first home buyers, replacing the former Home Guarantee Scheme.

Income caps were removed, property price caps increased, and the scheme became unlimited, meaning any first-home buyer with a 5% deposit could apply.

The Help to Buy Scheme launched on 5 December 2025, with 10,000 spots available each year. Eligible home buyers can purchase with as little as 2% deposit. The Australian Government will contribute up to 30% for existing homes or 40% for newly built homes towards the purchase price. Although, property price and income caps apply in this scheme.

Rents increased

Rents continued to climb in 2025. The median weekly rental value across Australia’s combined capital cities is now $702 per week putting even more pressure on tenants already feeling the squeeze.

Outside the cities, the picture is a little kinder. Regional rents remain noticeably lower, still sitting below $600 a week, offering some welcome relief for those willing to look beyond metropolitan areas.

What’s ahead in 2026

Interest rates may remain stagnant

With recent inflation data shaking things up, economists have now revised their forecasts for where interest rates are headed in 2026.

Experts predict that the cash rate will remain on hold at 3.60% for an extended period.

Although, some economists are forecasting further cuts, with predictions that the cash rate will fall to 3.35% by June next year and to 3.1% by September 2026.

APRA’s high-DTI cap comes in

From 1 February 2026, the Australian Prudential Regulatory Authority will introduce a new 20% cap on mortgages with a debt-to-income (DTI) ratio of six or more, with separate limits applying to owner-occupiers and investors.

This means it could become more difficult for higher-risk borrowers to secure finance when lenders are nearing their cap. Although, most borrowers currently remain well below this threshold.

Market conditions may be more restrained

According to Cotality, market conditions may be more restrained in 2026, as borrowing capacity, affordability and credit assessments impact demand. National property listings remain 18% below the five-year average.

“Supply remains tight, but the demand environment is shifting,” Cotality Australia head of research Eliza Owen said.

“Inflation forecasts have been revised higher, interest rate expectations have adjusted with them, and households are facing stricter borrowing assessments.

“Those factors can temper buyer activity even when stock levels are low.

“Lower value markets may still outperform because they carry less sensitivity to credit constraints, but overall growth is likely to be more measured compared with 2025.”

Together, these factors paint a picture of a property market entering a more cautious phase. While opportunities will still emerge, particularly in lower-value markets, buyers and investors may need to navigate 2026 with a more strategic, measured approach.

Like to chat through your finance options?

After a year of economic shifts and rate changes, 2026 is shaping up to bring fresh opportunities. Whether you’re thinking about refinancing, buying a home or making your next investment move, being informed and having your finances in good shape will make all the difference.

If you’d like to explore your 2026 plans and the finance options available to you, get in touch today.

With the year drawing to a close, 2025 stands out as a year of significant movement in the property market.

2025 delivered a surge in national dwelling values, with November marking the third month in a row that had growth of 1% or more. Even as the pace began to ease, momentum remained strong across much of the country.

Three cash rate cuts, renewed confidence, investor activity and the federal government’s expanded Home Guarantee Scheme (now the 5% Deposit Scheme) all played a major role in driving prices upward throughout the year.

If you’re thinking about buying a property this summer, now could be a good time to explore your finance options. Get in touch and we’ll help you get pre-approval sorted and guide you through the entire purchasing process.

Interest rate news

At its last meeting for 2025, the Reserve Bank of Australia (RBA) left the cash rate on hold at 3.60%, holding firm despite shifting economic pressures.

The Consumer Price Index (CPI) rose 3.8% in the year to October, up from 3.6% in September.

Underlying inflation, measured by the trimmed mean, also lifted slightly from 3.2% to 3.3% over the same period.

With inflation pushing above the RBA’s preferred 2–3% target band, the prospect of a cash rate cut appears increasingly unlikely. In fact, three of the Big Four banks now expect rates to hold for longer than previously forecast, while some economists are even warning of potential cash rate hikes in early 2026.

The next RBA cash rate decision will be announced on 3 February, giving borrowers a window to reassess their home loan strategy. If it’s been a while since your loan was reviewed, now may be a good time to consider a home loan review.

We’ll analyse the market for you and check whether your current loan is competitive, cost-effective, and aligned with your goals for the year ahead.

measures, with growth in housing values skewed towards lower price points of the market.

Home value movements

National housing values increased 1% in November, slowing down from October’s 1.1% gain.

Perth led the way, with prices increasing 2.4%. Sydney and Melbourne saw values increase 0.5% and 0.3% respectively, but every other capital city recorded a rise of at least 1% throughout November.

Cotality research director Tim Lawless said that growth in home values across the mid-sized capitals was once again diverging from the larger cities – a similar trend to the one seen in late 2023 and 2024.

“With inflation once again above the RBA’s target range and rates potentially on hold for the foreseeable future, it’s likely housing sentiment will suffer,” said Mr Lawless.

“With housing affordability already stretched and worsening, it stands to reason that fewer borrowers will be able to access credit as serviceability barriers become more prominent.

“We can already see the flow-through elect from such stretched affordability and serviceability measures, with growth in housing values skewed towards lower price points of the market.

“Over the past three months, most of the state capitals have seen values across the lower quartile of the market rising the fastest. Melbourne, where housing affordability isn’t quite as stretched, is the one exception, with the city’s broad middle of the market seeing the fastest lift in values.”

Ready to buy?

With multiple interest rate reductions already behind us in 2025 and rates currently holding steady, many people are reassessing their plans to purchase a home.

Depending on your personal circumstances, this may be a time to review whether buying your first property, upgrading, or expanding your investment portfolio is the right move for you.

From February 2026, new lending rules will also come into effect. The Australian Prudential Regulation Authority (APRA) will introduce a 20% limit on the proportion of new home loans issued to borrowers with a debt-to-income (DTI) ratio of six or more, with different limits applying to owner-occupiers and investors.

These changes are aimed at managing higher-risk lending, which APRA has observed rising alongside recent interest rate decreases and increases in property prices.

While the new rules do not automatically prevent a borrower with a DTI of six or more from getting a loan, they may influence how individual lenders allocate credit across different borrower types.

If you’re considering a purchase in the coming months, it may be helpful to understand how these developments could affect your borrowing capacity, alongside your income, expenses, and financial position. Exploring your options early can provide clarity and help you plan ahead with confidence.

If you’d like guidance on what may be suitable for your situation or want to discuss pre-approval, please get in touch.

Home prices continue to climb across Australia. In October, national dwelling

values rose 1.1% – the strongest monthly gain since June 2023.

Several factors are fuelling the uptick in growth. One is the lack of housing supply in many

markets. The expansion of the Australian Government’s 5% Deposit Scheme from 1 October

also saw a surge in first homebuyer activity and added demand to the lower and middle price

points of the market.

The scheme has made it easier for first home buyers to get into the market with a deposit of

just 5% (without paying LMI). However, it’s important to understand the risks involved. If the

property’s value drops, borrowers could get caught in negative equity territory.

That’s why it’s so important to purchase the right property for your needs in the right location,

without overspending. Here are some tips so that you can approach the market with

confidence.

1) Do your research

Thoroughly research the area you’re looking at buying in. Check out the median prices, recent

sales, capital growth trends, access to amenities, planned developments, population growth

and local employment.

These insights will help create a clear picture of the suburb, what you can expect to pay, and

how you can anticipate your property might perform.

Tip: Ask us for a free suburb report to help inform your decision making.

2) Get familiar with the market

It’s extremely rare to find the right property the first time you do an inspection. Usually, it takes

a few goes to get a feel for the market and know what you really want in a home. So, be

prepared to dedicate several weekends to open houses.

You could even check out some auctions to see how they work. It may give you insight into the

kinds of buyers you may be competing with.

Once you do find a property you like, look for any intel around the neighbourhood that could

be used as a negotiating tool. Street noise, perhaps? A dodgy-looking house on the corner?

Anything that affects the appeal of the property is a potential bargaining tool.

3) Have your finance ready to go

A finance broker can explain your borrowing capacity and organise pre-approval on your

finance. Pre-approval is an in-principle estimate of the maximum amount a bank is likely to lend

to you.

Having pre-approval in place helps mitigate the risk of overspending and gives you confidence

during the negotiating or bidding process. It also shows the seller that you mean business and

are actually serious about buying.

4) Walk away if necessary

When you fall in love with a property, it can be hard to walk away if the price is out of reach.

However, it’s important not to let clever marketing tactics like a beautifully staged home trick

you into paying more than you need to.

If the vendor won’t budge on price, you may need to look elsewhere.

Ready to get started?

By doing your research, understanding the market and organising your finance early through

us, you can rest assured you’re not overspending. Whether you’re looking to get in before the

end of the year, or want to discuss your options for next year, I’d be happy to chat through your

purchasing aspirations or get the ball rolling on pre-approval.

Imagine waking up in a cosy mountain retreat or in a beach shack overlooking the ocean – all in your very own holiday home. Sounds dreamy, right?

Whether you’re after a sea change, a tree change, or simply a place to unwind, investing in a holiday home can be an attractive way to diversify your property portfolio and create a retreat to escape to.

But before you turn this dream into a reality, here are a few reality checks you may need to consider before you dive in.

Plan how you’ll use it

Start by thinking about how often you’ll use the property and when. Your plans for personal use versus renting it out will have a big impact on your finances and potential returns.

Keep in mind that peak tourism periods, like summer for waterfront properties, often bring in the highest rental returns, which might mean forfeiting plans to stay there during those times.

Also, do your research to understand whether other holiday homes tend to rent out seasonally or year-round, as this will affect your income and budgeting.

Your guide to investing in a holiday home

Research the market thoroughly

As with any property purchase, it’s imperative you do your homework before purchasing a holiday home.

What’s the supply versus the demand like for holiday rentals?

Get to know the local tourism scene and holiday rental market. Will you have to rely on seasonal crowds, and if so, how will you cover costs during quieter times?

Check for capital growth indicators in the local area. It’s a good idea to choose locations that provide access to amenities such as shops, cafes and public transport. Check whether there are any infrastructure upgrades in the pipeline, as this could impact the property’s capital growth potential.

Check the local laws, rules and regulations

You’ll want to get your head around the local requirements for short-term rental accommodation. Regulations vary around the country.

Some areas may have restrictions on short-term holiday letting, or you may need to register the property to operate a short-term rental.

There may also be limits on how long you can live in the holiday home, as well as minimum standards of behaviour and requirements. Local councils may have laws (such as fire safety, noise control, parking or overcrowding) that could affect your holiday home.

There could also be other things like levies to consider. In Victoria, for example, a short-stay levy of 7.5% applies for bookings of less than 28 consecutive days.

Bottom line: do your research and understand your obligations.

Understand the financial implications

You’ll need to be able to cover the ongoing costs of owning a holiday home. Examples include:

• Mortgage repayments
• Council rates
• Home insurance
• Public liability insurance
• Cleaning fees
• Maintenance costs.

It’s important to be aware of the tax implications of owning a holiday home and to chat through these with your accountant or financial planner.

Examples of financial implications to consider:

• Tax deductions – You can claim tax deductions for expenses associated with earning rental income (interest on the home loan, maintenance costs, etc.), but only to the extent the home is rented out or genuinely available for rent. See the ATO’s holiday homes page.
• Negative gearing – If the property’s costs are greater than the income it produces, you may qualify for tax breaks through negative gearing. This means you can deduct any losses against other income, like your salary, wages or business income.
• Capital gains tax – You may be subject to capital gains tax when you sell, assuming you make a gain. If you own the property for more than 12 months, however, you may qualify for the capital gains tax discount, meaning 50 per cent of the gain is tax-exempt.
• Stamp duty and land tax obligations.

Ready to make it happen?
If you’re ready to take the next step towards owning your dream holiday home, we’re here to help.

The festive season is a time to celebrate, relax and connect with loved ones, but it can also put extra pressure on the household budget.

With the rising cost of living, a little planning can go a long way towards keeping the season merry without overspending. The festive season can be expensive, especially with the current cost-of-living crisis and increasing financial pressures on households.

A study by ASIC last year found that Aussies estimated they would spend an average of nearly $800 a person over the festive season on gifts, holidays and celebrations. For those living paycheck to paycheck, coming up with that extra cash can make the festive season more stressful than magical.

Thoughtful planning is the secret to avoiding overspending. Here are our tips for a stress-free, budget-friendly festive season.

Map out your holiday spending

Planning in advance will help you to create a spending budget for the festive season. This is key if you want to avoid getting into financial trouble.

Create a budget for gifts and start buying them sooner rather than later. Giving yourself a runway to plan out your expenses in the lead up to Christmas can make a world of difference when it comes to managing your outgoings. You may even be able to make the most of end-of-season spring sales or Black Friday (28 November) discounts.

Once you have a clear idea of your expected expenses, you can start planning how to generate the extra funds you’ll need. You may have to reduce non-essential spending on things like dining out if necessary.

You could also drum up some additional income by selling unwanted items online, having a garage sale, or by starting a side hustle like pet sitting, tutoring or dog walking.

Ditch costly gifts

Handmade or personalised gifts are a great way to get into the Christmas spirit, without breaking the bank. Think about ways to show people you care about them, without forking out a fortune.

You could bake loved ones special treats or give them a plant cutting from your garden in a hand-painted pot. Even a Christmas card with thoughtful words can be a great way to show your loved ones you care about them.

Plan your festive feast ahead

We all enjoy a good festive feast, but there’s no doubt this can be one of the most expensive parts of Christmas.

Having a set meal plan and buying in advance can be a great way to save money. Grab products when they’re on sale, and stock up on items that may get costly as Christmas approaches.

Also, if you have a big family attending a festive meal, ask each guest to bring a dish. People usually don’t mind contributing, and it will help ease the load (and financial burden) on you.

Avoid maxing out the credit card

At Christmas time, it can be tempting to tap and go, then worry about the consequences later. However, running up your credit card isn’t ideal, as it may lead to overspending and you could struggle to pay off your debt in the new year.

Keep in mind that interest on credit cards can be high, so if you don’t pay it off regularly, you may end up paying a lot more for the items you purchase.

Instead, try to stick to using cash or your debit card, so that you stay within budget and don’t spend beyond your means.

Thinking of a bigger purchase?

If your festive wish list includes a new home or investment property, we can help make it happen.

As your finance broker, we’ll explain your purchasing capacity, organise pre-approval and find you a competitive home loan that suits your goals and aspirations.

Please contact us for assistance to start the conversation.