Welcome to our
January Newsletter

What are your 2026 goals? If a property purchase is on the cards, it may be worth starting your planning early.

Last year was an exciting one in the property world. The Home Value Index (as measured by Cotality) surged 8.6% in 2025, adding roughly $71,400 to the national median dwelling value. Three cash rate cuts, increased investor activity and the federal government’s expanded Home Guarantee Scheme (now called the 5% Deposit Scheme) all contributed to price growth in 2025.

However, by the end of the year, home value growth was losing momentum in most markets. Experts are predicting a weaker start to housing trends in 2026, with uncertainty around inflation and interest rates likely to weigh on housing confidence. Ongoing affordability challenges and renewed focus on household debt and credit policy are also likely to influence buyer sentiment.

If you’re looking to purchase a property this year, get in touch early to discuss your finance options. We can explain your borrowing capacity, help you work through the deposit requirements, and organise pre-approval on your finance.

Interest Rate News

The Consumer Price Index (CPI) rose 3.4% in the 12 months to November 2025, down from a 3.8% increase in the 12 months to October 2025.

Inflation continued its gradual retreat in November, with trimmed mean inflation easing to 3.2% over the year, down from 3.3% in October.

All eyes are now on the Reserve Bank of Australia, which will hold its first monetary policy meeting of 2026 next month, ahead of a cash rate announcement on 3 February.

In December, RBA governor Michele Bullock flagged a possible rate increase if inflation could not be contained.

Meanwhile, Australia’s Big Four banks are split on the outlook for early 2026, with some tipping the cash rate to hold steady and others forecasting a 25 basis point increase in February.

With uncertainty around where rates are headed, it could be a good time to review your mortgage and make sure it’s still working for you.

Get in touch today and we can compare your loan against the wider market to see whether it remains competitive.

Home Value Movements

According to Cotality, national dwelling values rose 0.7% in December – the smallest gain in five months.

After nearly a year of steady growth, Sydney and Melbourne edged lower in December, with home values down 0.1% – the first monthly decline since January last year.

All other capital cities and broad regional markets continued to record price rises, albeit at a more subdued pace.

Cotality research director Tim Lawless said the easing conditions could signal a softer opening to housing market trends in 2026.

“Renewed speculation that the rate cutting cycle is over and the next move from the RBA could be a hike has dented housing confidence,” he said.

“A ‘higher for longer’ setting on interest rates, alongside a resurgence in cost-of-living pressures and worsening affordability pressures, looks to have taken some heat out of the market.”

Regional markets proved more resilient in December, slowing to 1% growth from the previous month’s increase in values of 1.2%. Over the calendar year, regional dwelling values rose by 9.7%, outpacing the 8.2% rise recorded across the combined capital cities.

Ready to buy?

With uncertainty around where rates are headed, it may be worth expediting your purchasing plans.

From February, the Australian Prudential Regulation Authority (APRA) will introduce new limits on high-debt lending, capping the share of new home loans issued to borrowers with a debt-to-income (DTI) ratio of six or more at 20%. The cap will apply separately to owner-occupier and investor loans.

The changes are aimed at curbing higher-risk lending so, if this could affect you, it’s worth having a conversation about your options sooner rather than later.

To discuss your finance needs, Get in touch today. We’re here to help make your 2026 purchasing plan a reality.

Additional sources:

Cotality Data Daily Home Value Index: Monthly Values
https://www.cotality.com/au/our-data/auction-results
https://www.realestate.com.au/auction-results/

Property investment in 2026:
5 points investors are keeping in mind

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.

1. Investment goals and overall strategy

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.

2. Location and market selection

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.

3. Affordability and alternative ways to enter the market

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.

4. Focus on preparation rather than perfect timing

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.

5. Professional support and reliable advice

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.

Ready to explore your property plans for 2026?

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.

Your budgeting guide to
buying your first home

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.

Set a savings goal

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).

Create a budget

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.

Automate your savings payments

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.

Reduce spending

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.

Ways to increase income

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.

Talk openly about your goals

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.

Being prepared

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.

Is your home loan still healthy? Here’s what to check.

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.

Why reviewing your home loan matters

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:

1. More competitive rates

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.

2. Lower monthly repayments

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.

3. More suitable loan features

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.

4. A loan structure that fits

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.

5. Simplified finances through debt consolidation

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.

6. Improved equity position

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.

Small changes may help to reshape your financial future

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.

Ready to review your loan?

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.

Welcome to our January Newsletter