The cash rate came down three times and property prices soared in many markets, driven by lower rates, tight housing supply and government incentives. Meanwhile, rents continued to climb across much of the country.
So, following February’s cash rate increase, what might investors expect next? Below we explore key investment property trends likely to shape the market in 2026.
National home values are projected to continue to rise, but growth is unlikely to be evenly spread.
Insights from Cotality’s Decoding 2026 report show that 87% of real estate agents and financial professionals across the property and finance sectors expect dwelling values to rise over the year ahead, while only 3.5% anticipate prices to fall.
Queensland, Western Australia and South Australia are considered the most bullish markets, with strong price performance supported by high population growth and limited supply.
Looking ahead, Perth, Adelaide and Brisbane are expected to outperform Sydney and Melbourne, where price momentum softened towards the end of 2025.
Properties that can accommodate multi-generational living are expected to be in high demand throughout 2026.
As both housing prices and rents rise, more families are choosing to live together, making dual-occupancy homes particularly attractive to investors. This includes properties such as a main residence with a granny flat, duplexes, side-by-side townhouses, or homes with a detached studio or cottage that functions as a second dwelling.
These types of properties can offer investment benefits, including higher rental income, greater flexibility and reduced risk.
Investors seeking value outside the capital cities may have regional areas on their radar in 2026. Regional markets often offer lower entry costs than capital cities, high rental yields, and the opportunity for investors to diversify their portfolios across geographic locations.
In terms of price growth, regional areas have remained comparatively strong, yet they’re still feeling some pressure. Flexible working arrangements and lifestyle migration has meant more people are thinking of moving to regional areas, increasing demand for housing.
In 2025, regional dwelling values rose 9.7%, compared to 8.2% across the combined capital cities. Western Australia stood out, with a 16.1% annual increase, followed by regional Queensland, which saw values rise 12.6%. Regional Victoria had the lowest growth, up 6% in 2025.
Energy efficiency and climate resilience are becoming increasingly important considerations for investors.
Properties with features such as solar panels, battery storage, electric vehicle charging, quality insulation and smart energy management systems are expected to be more appealing to tenants in 2026, which in turn can enhance long-term investment appeal.
Rentvesting is expected to gain further momentum in 2026, particularly among younger buyers navigating affordability challenges.
Rentvesting involves renting in a location that suits your lifestyle, while purchasing an investment property in a more affordable area with the potential for solid rental returns.
This approach can suit buyers who value flexibility and lifestyle, are priced out of their preferred suburb, but still want to build wealth through property ownership.
With the right knowledge and support, property investors can navigate 2026’s property market with confidence and take advantage of emerging opportunities.
If you’re considering purchasing an investment property this year, get in touch. We can help you understand your borrowing capacity, compare lender options and structure your finance to support your long-term investment goals.
Loyalty is an honourable trait, but not necessarily when it comes to your home loan.
Sticking with the same lender indefinitely may mean you’re paying what’s known as a ‘loyalty tax’. This often shows up as higher interest rates compared to what new customers are offered.
With interest rates on the rise, now could be a good time to check whether you are paying loyalty tax and it may be worthwhile exploring your options along the way.
Loyalty tax refers to the extra cost some borrowers pay simply by staying with the same home loan provider over time.
To attract new customers, lenders often advertise lower interest rates or special offers that aren’t automatically passed on to existing borrowers. As a result, long-term customers can end up paying a higher rate without realising it.
In some cases, the longer you remain with one lender, the more a loyalty tax can creep in. That’s why reviewing your home loan from time to time can help ensure you’re still on a competitive rate.
Interest rates aren’t the only area where loyalty tax can apply. In some cases, long-standing customers may miss out on special offers, encounter additional fees, or receive a lower standard of customer service than new customers.
Whether it’s your utilities or your mortgage, comparing providers can help you identify areas to save. While the amounts may seem small at first, they can accumulate over time and contribute to broader financial goals.
Start by checking how your current interest rate compares with the rates your lender is advertising to new customers. If there’s a noticeable difference, it may be time to take action.
You may also consider negotiating directly with your lender to see if a more competitive rate is available. In some cases, lenders may apply a discretionary discount to retain existing customers.
Having a strong credit history and a lower loan-to-value ratio can help strengthen your negotiating position.
If you’d like to see what else is out there, we can compare home loans across the market for you. If we find a more suitable or competitive option, refinancing could be worth a look and it may even give you access to new customer offers.
We’ll break down the potential savings and explain any costs involved, so you can decide with confidence.
When it comes to home loans, it doesn’t pay to set and forget. Regularly reviewing your mortgage and comparing options can help reduce the risk of paying a loyalty tax.
The good news is that refinancing is generally more straightforward than buying a property. There’s no contract of sale, no real estate agents, and often far fewer parties involved – just us and, in many cases, your lender.
To get started, get in touch today and we’ll help you run the numbers.
Nothing compares to that feeling of buying your first home. If you’re planning a 2026 property purchase, saving the deposit is often one of the biggest hurdles. Careful planning and perseverance can play a role in working towards this goal.
Here are some tips to help you work towards your savings target.
The first step is to work out how much you’ll need for your deposit. Check out what properties in your preferred suburbs are selling for, and from there, you can work backwards and estimate the amount of deposit you’ll require.
You may like to look into the Australian Government’s 5% Deposit Scheme, which allows eligible first-home buyers to enter the market with just 5% deposit. If you’re not planning to use the scheme, aiming for a 20% deposit may help you avoid lenders’ mortgage insurance (LMI).
Next, create a monthly budget. This can help you to understand how much you may be able to save.
Factor in your total monthly income after tax, then list all of your expenses. Don’t forget to include regular costs like rent, utility bills, insurance, and streaming services, as well as unexpected expenses like your car repairs.
There are loads of budgeting tools available to help with tracking expenses. Some apps even break down and track your expenses as well as provide suggestions to help you work towards your saving goals.
If you don’t have a separate savings account yet, opening one may be a useful first step – for example, an account that offers interest and has low or no ongoing fees.
Setting up an automatic monthly transfer may help you build savings over time, with less day-to-day effort.
A strong savings track record is something lenders look for when assessing home loan applications, so this habit may be relevant when you’re preparing to buy.
If you’re looking to make progress towards your savings goals, you may need to cut down on discretionary spending. That might mean saying goodbye to your gym membership and instead exercising outdoors. Joining the local library instead of buying books new. Or cutting down on meals out and limiting entertainment such as streaming services.
There are also ‘no spend challenges’ shared on social media, such as limiting clothing purchases for a period of time or reducing how often you eat out. Some people find these approaches to be helpful when reviewing their spending habits.
Some people consider ways to generate additional income when working towards a savings goal. This might include options such as tutoring, taking on additional hours at work, or exploring a side project.
You may also choose to review items you no longer use, such as sporting equipment, musical instruments or collectibles, and consider whether selling them aligns with your circumstances. Small amounts can contribute towards a savings goal over time.
Talking to your family and friends about your home buying goals can be helpful for some people in staying mindful of their plans. Social catch ups might look a little different in 2026, such as more dinners at home with friends rather than going out. Over time, these adjustments may support your savings efforts.
Buying your first home is exciting, and we’re here to provide information and support throughout the process.
As your finance broker, we can help you understand how much you may be able to borrow, explain the costs involved in buying a home (such as stamp duty and legal fees), and discuss finance options including pre-approval.
We can also explain whether you’re eligible for government incentives, such as the First Home Owner Grant or the First Home Super Saver Scheme. And if your deposit isn’t quite there yet, we can talk through what alternative options could be available to you.
Get in touch if you’d like to discuss your options.
Check out our FHB Booklet – 2025 update.pdf for more guidance.
Property investment looks different for everyone, with no single approach suiting every situation. As market conditions, lending rules and affordability, continue to change, planning and preparation are becoming an increasingly important part of the conversation for investors.
With a new year underway, many property investors are reviewing their goals and plans for the months ahead. Whether you already own an investment property or you are planning your first purchase in 2026, these are five key points many investors are keeping in mind.
Before diving into property listings, it can be helpful to be clear on what you want the investment to achieve. Some investors prioritise long-term capital growth, others focus on rental income, and many aim for a balance of both.
Your goals will often be shaped by your broader financial position, your risk comfort level and how long you plan to hold the property. These factors can influence the type of property you consider and the strategy that may suit you.
Commonly discussed strategies include buy-and-hold, negative or positive gearing, purchasing new or off-the-plan properties, or renovating to add value. Each option has potential benefits and risks, so it’s important to do your research and get professional advice about which may suit your circumstances.
Where you buy can have an influence how your investment performs over time. Many investors look beyond their own suburb or city and explore opportunities across different markets.
This might include capital cities, regional centres or even interstate options as part of a diversification approach. Regional areas have attracted attention in recent years due to affordability advantages and local economic factors.
Understanding factors such as employment opportunities, infrastructure spending, population growth and rental demand can help you make more informed decisions about location.
Affordability remains a major consideration for investors heading into 2026, which has led many people to think more creatively about how they enter the market.
One approach often discussed is rentvesting. This involves renting in an area that suits your lifestyle, while purchasing an investment property in a more affordable or higher-growth location. For some people, this may offer a way to build a property portfolio without stretching themselves financially to buy where they live.
Exploring different entry approaches can help you consider whether your investment plans fit comfortably with your finances and lifestyle.
Trying to time the market perfectly can be challenging, even for experienced investors. Instead, many investors focus on being financially prepared, so they are able to respond when opportunities arise.
This usually means understanding your borrowing capacity, setting a realistic budget, and allowing for buffers such as interest rate changes, vacancies or unexpected expenses. For some buyers, securing finance pre-approval provides clarity and confidence before starting their property search.
Being organised and finance-ready can make the process smoother when decisions need to be made.
Property investment involves more than just choosing a property. There are lending, tax, legal and ongoing management considerations to navigate along the way.
Many investors choose to work with professionals such as mortgage brokers, accountants, financial advisers, real estate agents, conveyancers and property managers. Each can play a role in helping you understand your options and navigate decisions along the way.
Having the right team around you can provide reassurance and help you move forward with more confidence.
Whether you are planning your first investment or reviewing an existing portfolio, understanding your finance options is a crucial step.
If you would like to discuss your borrowing capacity, equity position or pre-approval options, get in touch today. We are here to provide clear, straightforward guidance and help you move forward with confidence as you plan your property journey for 2026.
As interest rates shift and the property market evolves, your mortgage may not be something you set and forget. Just like your financial goals, your home loan needs can change over time, which is why it’s worth checking in regularly.
If you haven’t reviewed your loan in a while, now could be a good time to do a quick health check. Read on to see what your home loan health check could uncover.
What worked when you first bought your home might not be the best fit anymore. A home loan review can help you assess where things stand today and whether there’s room to improve. Here’s what you might uncover:
Lenders are constantly updating their rates and offers. You might now have access to a more competitive offer than when you first signed your loan, potentially saving you interest over the life of the loan.
Securing a lower rate or adjusting your loan structure can reduce your repayments and free up extra cash. This can give you more room in your budget or allow you to redirect funds toward savings or investments.
Offset accounts, redraw facilities, and flexible repayment options can influence how effectively you manage your mortgage. These features can help you reduce interest and gain more control over your day-to-day finances.
As your goals change, your loan should evolve with you, and changes in your equity position may allow you to restructure your loan more effectively. Whether that’s accessing equity for renovations or investments or rebalancing your loan to better match your long-term goals.
If you’re juggling credit card debt or personal loans, rolling them into your mortgage could reduce your overall interest rate and make repayments more manageable, giving you a clearer financial picture.
As your property value grows and your loan balance reduces, your loan-to-value ratio (LVR) may improve. A lower LVR may provide more competitive rates, reduce or eliminate lenders mortgage insurance (LMI), and open up more refinancing options.
Even if your loan seems to be running smoothly, reviewing it regularly may highlight areas to consider. Small changes such as discussing competitive rates or adjusting your repayment frequency (for example, switching to fortnightly payments) may affect your loan over time.
Too often, homeowners stick with the same loan for years without exploring other options. A home loan health check gives you the chance to stay informed and make sure your mortgage still aligns with your lifestyle and financial goals.
Your mortgage is one of your larger financial commitments, and it may benefit from regular review. As the market shifts and your personal circumstances evolve, a review may help you consider your available options.
Reach out if you’d like a home loan health check to see whether your loan still aligns with your current circumstances.
If you’re looking to purchase your first home, there are a few common mistakes to be aware of before you dive in.
But first, let’s take a look at the expanded scheme and what it means for buyers.
The scheme, formerly known as the Home Guarantee Scheme and now branded the Australian Government 5% Deposit Scheme, aims to help more Australians to buy their first home sooner.
Eligible first-time buyers on all income levels can purchase a home with a 5 per cent deposit, without having to pay costly lenders’ mortgage insurance (LMI). The government acts as a guarantor for 15 per cent of the home loan.
Price caps on eligible properties have lifted, and there is now no limit on the number of people who can apply. First home buyers in Sydney, for example, could purchase a $1.5 million home with a $75,000 deposit. A $950,000 home in Melbourne would require a $47,500 deposit.
As a first-home buyer, it’s an exciting time to be entering the market. Here are some common mistakes to be aware of.
Saving your deposit is only one piece of the puzzle. You also have to consider the other upfront costs of buying a home, which may include:
There are also ongoing costs to factor into your budget, such as council rates, water and utility costs, body corporate fees (for example, for apartments), maintenance and insurance. All of these need to be included in your budget.
It’s easy to fall in love with a property’s aesthetics and potentially blow your budget or overlook its flaws.
Take a critical approach when inspecting properties and make sure the property you settle on ticks your key boxes.
Remember that there will always be another property that you could call home, even if this one falls through.
Pre-approval is an indication of how much a lender is likely to lend you, based on an initial assessment of your income, expenses, assets and liabilities.
Getting pre-approval gives you a clear understanding of your spending limit, narrows down your property search and strengthens your ability to negotiate with sellers. You’ll be in a better position to make an offer or bid at auction with confidence, knowing your finances are in order and ready to go.
Pre-approval for a home loan usually lasts for 90 days.
You may be tempted to skip a building and pest inspection to save money, but that could ultimately cost you thousands in the long run.
You’ll want to ensure the property is free of structural problems and unwanted pests like termites, or other issues like asbestos or rising damp, before purchasing.
Arrange the building and pest inspection before you sign the contract of sale to avoid unwelcome surprises.
Buying your first home is exciting, but it’s important to have experts on your team steering you in the right direction.
As your finance broker, we’ll run through your current financial situation and purchasing goals, then find you the right home loan for your specific needs.
We can also explain whether you’re eligible for any first home buyer government incentives that could help you achieve your goals sooner.
Get in touch today.
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.
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.
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.
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.
You’ll need to be able to cover the ongoing costs of owning a holiday home. Examples include:
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:
If you’re ready to take the next step towards owning your dream holiday home, we’re here to help.
Get in touch today to start the conversation about bringing your holiday home dream to life.
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.
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.
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.
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.
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.
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.
So, what’s driving this refinancing surge – and could it be worth considering for you too?
For many borrowers, the primary motivator to refinance is the potential to secure a lower interest rate with another lender.
With three cash rate cuts totalling 0.75% so far this year, there is fierce competition among home loan providers to lock in borrowers. Many lenders have reduced interest rates in the hope of getting more borrowers through the door, while holding onto existing ones.
Some borrowers are also choosing to refinance into shorter loan terms. If your income has grown or you’re in a position to pay off your loan sooner, this can reduce the overall interest paid across the life of the loan.
Many borrowers choose to refinance in order to access the equity in their property. Equity is the difference between what you owe your lender and the current market value of your property.
With national home values on the rise for eight consecutive months and Australian house prices at a record national average, you may have more equity built up than you realise.
Refinancing allows you to tap into that equity, which can then be used for renovations, an investment property, or even helping your kids with education costs.
Some borrowers refinance to access loan features such as offset accounts or redraw facilities, which can help reduce interest while giving you flexibility with your repayments.
Others switch between fixed and variable rates, depending on what suits their situation. With recent rate cuts, some banks have lowered fixed rates, making them attractive to borrowers who want certainty over repayments.
For those with multiple different types of debt, such as a car loan, personal loan, home loan and credit card debt, refinancing to consolidate debt may be worthwhile.
Rolling all your debts into a loan with a lower interest rate and one repayment can be beneficial, but there are risks involved. It’s important to speak to a finance professional and weigh up your options before deciding whether debt consolidation is right for you.
Experts expect refinancing activity to remain strong this year. If you’ve been with the same lender for a while, or if it’s been a few years since you reviewed your home loan, now could be the right time to see what’s available. Talk to us today and we’ll compare the market for you, step you through what potential options are available.
As a result, more and more borrowers are breaking out of ‘mortgage prison’ and refinancing their home loans to more competitive options.
If you’ve been trapped with the same lender for some time, you may be able to break free and find a more suitable home loan elsewhere.
While there are no barred windows, high walls or guard towers in a ‘mortgage prison’, it can still feel quite burdening if you’re a borrower locked into one.
A mortgage prison is where a borrower cannot refinance their home loan, often because they don’t meet serviceability standards or because of insufficient equity. This inability to refinance means borrowers end up stuck with a lender, potentially forking out more in interest than they should be.
A variety of factors can lead to the mortgage prison scenario, including falling property prices, interest rate hikes or changes in income.
Many Australians became mortgage prisoners after taking advantage of low fixed-rate loans during the COVID-19 pandemic. When their fixed rate terms eventually came to an end, they found themselves facing rising variable interest rates they struggled to afford.
So far this year, there have been cash rate cuts in February, May and August. As a result, serviceability pressures have eased substantially.
Many borrowers who previously found themselves in a mortgage prison have been released and are able to refinance to more competitive home loans – and that’s exactly what they’re doing.
Recent rate cuts in February, May and August have prompted a wave of activity, as Australians take advantage of improved borrowing conditions to switch to more competitive deals. According to recent RBA data, the gap between rates for existing and new owner-occupiers has shrunk to a record low of just 0.04 percentage points, suggesting that refinancing is increasingly on the radar for borrowers.
Some key motivators to refinance include:
What to expect next?
The RBA has previously said it would take some time for the full effect of the cash rate cuts to become evident. The number of people refinancing home loans is expected to rise, as more lenders decrease interest rates to remain competitive.
However, with the Reserve Bank of Australia likely to keep rates on hold, borrowers will need to manage their mortgage repayments without any expectation of immediate relief. As rates are projected to stay steady until early 2026, homeowners are being urged to review their loans and shop around for more competitive deals.
With the market continuing to shift, it might be worth taking another look at your home loan to see if it’s still working for you.
Your serviceability may have improved, or you may have more equity than you thought and be able to refinance to a more suitable home loan. Remember, refinancing could make a difference to your loan over time, so it’s worth considering.
Get in touch today.
103 Banna Avenue,
Griffith NSW 2680
P | 02 6964 4690
info@mylendingspecialist.com.au
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