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Many homeowners have a rough idea of what their property is worth, but fewer understand how the equity they’ve built up could support future financial goals. Whether you’re considering renovations, upgrading, purchasing an investment property or simply exploring your options, understanding equity can be an important starting point.Let’s take a closer look at how equity works and why it matters. What is equity? Equity is the difference between your property’s current market value, and your home loan balance. If your home is worth $900,000 and you owe $300,000, your total equity is $600,000. When you pay down your mortgage or your home increases in value, your equity increases.While equity is often discussed as a single figure, not all of it may be accessible. As a general rule, lenders will typically allow borrowers to access up to 80% of a property’s value, less any outstanding mortgage balance. This is commonly referred to as usable equity.Borrowing above 80% of a property’s value may incur Lenders Mortgage Insurance (LMI), which can add to the overall cost of borrowing. How can you use equity? For many homeowners, equity is more than just a number on paper. Depending on your circumstances, it could provide greater financial flexibility and help support a range of future goals.Some people use equity to fund home improvements, such as a new kitchen, bathroom or outdoor entertaining area. Others use it to help purchase an investment property, invest in shares, cover education expenses or finance a major purchase such as a vehicle or boat.In some cases, homeowners may also choose to use equity to consolidate existing debts. This typically involves increasing a home loan and using the funds to repay higher-interest debts, such as credit cards or personal loans, leaving a single regular repayment to manage.However, debt consolidation isn’t suitable for everyone and comes with risks that should be carefully considered. Before accessing equity or making any borrowing decisions, it’s important to understand the costs, risks and long-term implications, and discuss your options with a qualified finance professional. How does it work? There are several ways homeowners can access equity. Some of the most common options include:Top-up loan: This involves increasing your existing home loan and accessing additional funds as a lump sum, which can then be used for an approved purpose.Separate loan split: Rather than increasing your current loan, you may be able to establish a separate loan account secured against your property’s equity. This can help keep borrowed funds for different purposes separate.Refinancing: Refinancing involves replacing your current home loan with a new one. Depending on your equity position, this may allow you to borrow additional funds while also providing an opportunity to review your interest rate, loan features and overall lending arrangements.Line of credit: A line of credit allows you … [Read more...] about Understanding equity and how it can unlock value in your home

It’s been a challenging few months for property investors. Changes to negative gearing and the capital gains tax (CGT) discount have fundamentally shifted the landscape for investors and prompted many to rethink their purchasing plans. From 1 July 2027, negative gearing for residential property investments will be limited to new builds, while the 50 per cent CGT discount will be replaced with cost-base indexation and a 30 per cent minimum tax rate on capital gains. Against this backdrop, new investor loans fell by 8.6% in the June quarter, with their value declining 10.2%.At the same time, property values have softened across many Australian markets. Tax changes, geopolitical uncertainty, and interest rate hikes have weighed on sentiment. National house prices are now forecast to decline by 1.1% in 2026, while unit prices are expected to increase by 2.2%.But property investors aren’t looking at prices in isolation. Rental demand remains strong and vacancy rates are low in many parts of the country, supporting rental returns even as capital growth slows.Successful property investing is about understanding the full picture, including rental demand, cash flow, supply, and tax considerations. And with the market changing, many investors are pivoting their strategies accordingly. Rental market conditions remain strong While conditions have softened for buyers and property prices have eased, Australia’s rental market remains under pressure.Despite moderating population growth and migration, Australia’s rental market conditions remain tight. National vacancy rates are low, at 1.3% as of July 2026, and total rental listings are 16.7% below the five-year average.In practical terms, renters are still competing for a limited pool of properties in many parts of the country. This has helped keep upward pressure on rents, even as broader housing market conditions have weakened.According to KPMG, rental growth is expected to track above its long-term average through the remainder of 2026, underpinned by supply shortages.For investors, this means rental returns could continue to provide support at a time when capital growth has slowed. For prospective buyers weighing up whether to rent or purchase, persistently high rents might also remain an important consideration. What about gross rental yields? Gross rental yield is a measure that investors consider when deciding whether to buy a property. It’s a percentage that shows the property’s annual rental income, compared to its purchase cost or value (whereas net rental yield factors in expenses associated with owning the property).With rents increasing and home values declining, gross rental yields are trending higher. National gross rental yields reached 3.79% in August, the highest level since September 2019, according to Cotality. Yields are significantly higher in some of the smaller capital cities, reaching 6.3% in Darwin and 4.4% in Hobart, for example.This reflects a broader … [Read more...] about Why rental yields are back in focus

Spring is traditionally the busiest time of the year in the property world. More sellers tend to list their properties during this season, when gardens are looking their best and pleasant weather makes weekend open homes and moving house easier. Many families also like to purchase in spring so that they can settle into their new home before Christmas and the new school year begins.However, this year’s spring property buying season is shaping up to look quite different from previous years. Here are the key trends that buyers should know about. The property market has softened This spring arrives against a backdrop of softer housing market conditions. Properties are taking longer to sell and national home values have dropped for several consecutive months.Serviceability constraints, high mortgage rates, reduced borrowing capacity and cost-of-living pressures continue to weigh on buyer sentiment.Economists are widely expecting the Reserve Bank of Australia (RBA) to increase the cash rate again in September or November, which will further affect borrowing power.While these conditions have made many buyers more cautious, they may also create opportunities. With homes spending longer on the market and competition easing in some areas, buyers this spring could find themselves in a stronger position to negotiate on price and contract terms. Fewer new listings As buyer demand softened over winter, homes took longer to sell and the number of properties available for purchase continued to build.Across most capital cities, advertised stock is now sitting well above both last year’s levels and the five-year average. In the four weeks to 30 August, for example, total listings across the capitals were 24% higher than a year earlier and 8% above the five-year average.Interestingly, while there are more properties available overall, the number of newly advertised homes declined towards the end of winter. New listings were 6% lower than a year ago and 8% below the five-year average.As a result, experts expect the usual spring surge in new properties may be more subdued this year, with some vendors choosing to wait for market conditions to improve before selling. Investors remain cautious Following multiple cash rate increases and Federal Government changes to negative gearing and capital gains tax settings, many investors are reassessing their property plans.Early signs suggest some are choosing to sit on the sidelines. Australian Bureau of Statistics data shows the total value of new home loans fell 5.4% in the June quarter, driven largely by an 8.6% decline in investor lending.As a result, investors may play a smaller role in this year’s spring market, potentially reducing competition for owner-occupiers in some areas. So, what does this mean for aspiring homeowners? Conditions this spring may be more favourable for buyers than they have been in recent years.With more properties available, less … [Read more...] about Spring listings are returning, but will buyers have more choice?

Spring has officially arrived, and so has one of the busiest seasons in the property market. This season, home values continue to decline across the country, as cash rate hikes, tax rule changes, and geopolitical tensions continue to make waves across Australia. According to Cotality, 93% of capital city suburbs recorded price drops over the winter, meaning there could be new opportunities to discover.As buyer demand softens, properties are sitting on the market longer and supply is growing. Across most capital cities, there are more homes on the market than there were a year ago, despite fewer new listings coming to market.If you’re looking to purchase, getting pre-approved on your finance will help you feel more ready to jump in with an offer or bid with confidence. Interest rate news Economists widely expect the Reserve Bank of Australia (RBA) to hike the cash rate this month, while some believe the central bank may hold out until November.Inflation is continuing to ease, with the annual rate falling from 3.8% in June to 3.5% in July. However, the RBA’s preferred measure of underlying inflation remained unchanged at 3.6%, which is still above its target range of 2 to 3%.At the same time, household spending rose more than expected in July, suggesting consumer demand remains resilient despite higher borrowing costs.With the possibility of further rate rises ahead, it could be a good opportunity to review your mortgage and make sure you’re still on a competitive rate. Get in touch and we’ll compare options across the market for you.The next cash rate decision will be announced on 29 September. Home value movements Australia’s property prices continued to fall in August, down 0.9% according to Cotality. Values are now 3.6% lower than the peak in March.Sydney, Melbourne and Canberra saw the biggest declines, while all other capitals except Darwin experienced price falls.The proportion of capital city suburbs recording a drop in home values more than doubled through winter, rising from 45.8% in autumn to 93%, highlighting a much broader weakening in housing conditions.Cotality research director Tim Lawless said the latest figures showed the downturn was no longer confined to select markets or higher value segments.“What started as a more concentrated easing across higher value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline,” he said.“Sydney continues to lead the downturn. The combination of a sharp drop in demand andhigher than average advertised stock levels is weighing more heavily on Australia’s largest housing market.” Home Value Index * Monthly Home Values figures as of 31 August 2026* Australian auction results, clearance rates and recent sales for the week ending 6 September 2026* The clearance rate is preliminary and current as of 11:30 pm AEST on 9 September 2026Ready to … [Read more...] about Spring 2026 Property Market Update: Rates, Home Values & Buyer Opportunities

The Federal Government’s negative gearing and Capital Gains Tax (CGT) reforms represents a significant shift in how future property investments will be treated for tax purposes. For investors considering their next purchase, the changes may influence everything from the type of property they buy to how they assess cash flow and long-term returns. Legislated, many investors are reassessing their property purchasing plans and strategies. The core reforms have now passed Parliament, although some of the more detailed implementation rules are still being finalised ahead of their commencement. If you’re looking to buy an investment property down the track, here’s what you need to know about the reforms and how they change the playing field. What is changing? On 12 May, Treasurer Jim Chalmers handed down the Federal Budget, which included major changes to negative gearing and CGT rules.From 1 July 2027:Negative gearing for residential property investments will be limited to new builds.The 50 per cent CGT discount will be replaced with cost base indexation and a 30 per cent minimum tax rate on capital gains.Properties held before the announcement (7:30pm AEST 12 May 2026) will be exempt from the negative gearing changes, while the CGT reforms will only apply to gains accruing after 1 July 2027. How have the reforms affected the market and investors? When the changes were announced, Australia’s property market had already been cooling, driven by a combination of cash rate hikes, housing affordability constraints, the Middle East conflict, and cost-of-living pressures.But the Federal Budget reforms dampened the market even further, with auction clearance rates slipping to levels worse than during the pandemic, and investor confidence dropping.One survey of more than 1,400 Australian investors found that more than 80% believed residential investment property had become less attractive following the 2026 Federal Budget changes. At the same time, 51.5% said they planned to hold their existing investments and wait to see how the proposed legislation evolves.Overall, the survey offers a useful snapshot of investor sentiment, although it should not be taken as representative of every Australian property investor. Key shifts in strategy Since the announcement, there have been early signs that some investors are reconsidering where and how they invest, although it is too soon to say how the reforms will reshape the broader property market over the long term.New builds could attract more attentionWith negative gearing limited to new builds from 1 July 2027, there are signs that some investors are pivoting towards newly constructed properties.Data from property fund manager Oliver Hume shows the proportion of new-build sales to investors in Victoria has risen above 40 per cent for the first time since December 2024, for example. Experts say investors will likely switch to new units or houses on the outer city fringes, … [Read more...] about Are property investors changing course after the new negative gearing reforms?

When you’re planning to buy your first home or investment property, getting your head around all the jargon can feel overwhelming. One term you’re likely to come across is ‘conditional pre-approval’. Many buyers think conditional pre-approval means they’re ready to purchase a property immediately. However, conditional pre-approval is only one step in the lending process. Buyers heading into spring should understand what still needs to happen before finance is formally approved. What is conditional pre-approval? Conditional pre-approval is when a lender agrees in principle to lend you a certain amount of money. It’s often referred to as pre-approval or approval in principle.Conditional pre-approval doesn’t guarantee you a home loan. You still need to go through the loan application process and, once you find a property, your lender will still need to assess the property itself and may need to confirm that your financial circumstances have not changed.Once your lender has assessed and approved your loan application, that’s when you’ll receive formal, or ‘unconditional approval’. Benefits of pre-approval While you technically don’t need to be pre-approved when purchasing a property, it’s still considered advantageous for several reasons. Understand your budget Getting conditional approval gives you a realistic understanding of how much you can afford to spend on a property, and how much a lender is likely to be willing to lend you. This gives you confidence when bidding at auction or making an offer. Show sellers you’re serious Pre-approval shows sellers that you’re genuinely motivated to purchase and not wasting their time. It may give you an edge over the competition during negotiations, as it indicates your offer is less likely to be withdrawn due to lack of financing. Be ready when your dream property comes along By having your finance pre-approved, you can jump on opportunities when they arise. You may even be able to offer the vendor a shorter settlement period because your financial background check is already done, which may speed up the final approval process. How long does pre-approval last? Although conditional pre-approval is advantageous for a buyer, it doesn’t last forever. The validity of your pre-approval varies between different lenders and across different circumstances.If you haven’t found a suitable property before your pre-approval expires, your lender may ask you to provide updated information or complete another assessment.It’s also important to let your broker know if your circumstances change while you’re house hunting. A new job, additional debt, a change in income or higher expenses could affect your borrowing position.Thinking about buying this spring?Purchasing a property can feel overwhelming at times, particularly when it comes to understanding your finance options. Working with a mortgage broker gives you access to guidance and support … [Read more...] about Home loan pre-approval: What you need to know before house hunting this spring

You might be earning the same income as you were six months ago, but that doesn’t necessarily mean you can borrow the same amount. Understanding your borrowing capacity is an important step before you start your home-buying journey. Your borrowing capacity is influenced by a range of factors, and it can change over time, even if your income hasn’t. Interest rate fluctuations, regulatory settings, credit card limits, living expenses, existing debts, and lender policies can all affect how much a lender may be willing to lend you.If you’re planning to buy, refinance or invest, it’s worth understanding where you stand before you start making property plans.Here are some of the key factors that could affect your borrowing capacity. Higher interest rates can reduce borrowing power Interest rates have been a major focus in 2026, with multiple cash rate increases affecting how lenders assess borrowing capacity.When rates rise, the amount a borrower may be able to access can reduce, as lenders need to consider the impact of higher repayments both today and into the future.When assessing a home loan application, banks also apply a stress test using your interest rate, plus a 3% serviceability buffer. The Australian Prudential Regulation Authority (APRA) also requires banks and other authorised deposit-taking institutions to apply a serviceability buffer of 3 percentage points when assessing home loan applications. For example, if your home loan interest rate is 6%, the bank will assess you on a 9% rate. This allows lenders to test whether you can afford future interest rate hikes, but it also reduces your overall borrowing capacity. High debt-to-income lending limits From 1 February this year, the APRA introduced limits on high debt-to-income (DTI) lending. The main reason was to prevent a dangerous accumulation of risky lending.The cap limits banks to issue no more than 20% of new mortgages to borrowers with total debt above six times their gross annual income. This applies separately to owner-occupier and investor lending.The DTI changes do not directly reduce your borrowing capacity, but rather functions as a portfolio cap for banks. So, if your combined debts (i.e. your existing mortgage, car loan, credit cards, and new home loan) push your DTI ratio to six times your gross annual income or more, home loan approval may be harder if your chosen bank has reached its 20% high-DTI limit. Credit card limits can affect your assessment Having multiple credit cards with high limits can negatively impact your borrowing capacity, even if you rarely use them or carry no outstanding balance. That’s because lenders treat your total available credit as an ongoing financial commitment when calculating how much they’re prepared to lend.If you have credit cards you no longer need, closing unused cards before applying for a home loan may help improve your borrowing capacity and strengthen your loan application. Living … [Read more...] about Has your borrowing power changed?

Australia’s property market continues to adjust to higher interest rates, affordability pressures and ongoing economic uncertainty shaping conditions for buyers and homeowners alike. In many areas, conditions are becoming more favourable for buyers. Home values have eased, properties are taking longer to sell and auction activity is subdued, giving buyers more opportunity to negotiate.A recent KPMG report suggests housing conditions may remain subdued through the rest of 2026, forecasting a 1.1% decline in national house prices before a projected recovery in 2027. Unit markets are expected to prove more resilient, with prices forecast to continue rising over the next two years.Property investors are also navigating an evolving regulatory landscape. From 10 August, changes to SMSF borrowing rules will add a third clause to the definition on an acquirable asset. This means that only property that meets the definition of business real property is able to be financed through a loan within an SMSF.Existing arrangements on property contracts that were signed prior to 10 August 2026 will remain grandfathered, although there is some uncertainty as to how many lenders and loan products will remain in the space once the changes are in place. Furthermore, residential property will still be able to be purchased outright using cash reserves of the SMSF only.For those looking to buy this spring, having your finance in order is paramount. Chat to us now about organising pre-approval on your home loan. That way, you’ll be ready to jump in when you find your dream home or investment property. Interest rate news As widely expected, the Reserve Bank of Australia (RBA) has left the cash rate on hold at 4.35% at its latest meeting.Australia’s annual headline inflation rose 3.8% in the 12 months to June, down from 4% in the 12 months to May, while underlying inflation held steady at 3.6%.The softer-than-expected inflation data has many economists saying the cash rate may have peaked for the time being.Several economists now expect the RBA to leave the cash rate unchanged for the remainder of 2026; however, the timing and direction of the next move remain uncertain.If you’ve been with the same lender for some time, a home loan review can help you understand whether your current loan still aligns with your circumstances and objectives.ASIC has also recently highlighted offset account errors that have affected some borrowers. There are a couple of ways you can check that your offset account is linked correctly, depending on your lender:Via your banking app or internet bankingVia your statements (check whether your offset balance is reducing the amount used to calculate interest)By contacting your financial institutionIf you’re still unsure how you can check your offset account, your broker can help confirm that it is operating as intended.Get in touch if you’d like to review your current loan structure and ensure it’s still aligned with your … [Read more...] about Australian Property Market Update: Prices Decline and Buyer Conditions Improve