Welcome back and Happy New Year. The market didn’t stay quiet over the summer, and with lending rules, investor activity, and affordability shifting, it’s worth getting across what’s happening early.
- Investors claim the biggest lending share since 2016
- Affordable homes pull ahead on price growth
- The investing shifts that matter most in 2026
- Mortgage stress eases – but buffers still matter
Keep reading for all the news.
More investors are stepping back into the market – and the data shows it’s a big shift.
The latest figures from the Australian Bureau of Statistics show the value of investor loan commitments jumped 17.6% in the September 2025 quarter, and was 18.7% higher than a year earlier.
Investors now account for 40.6% of the value of all new loan commitments, the highest share since 2016. That tells us investor confidence is building, even as affordability pressures remain.
What’s pulling investors back in?
Price growth and rental demand are doing the heavy lifting.
- National dwelling prices rose 8.6% over 2025.
- Rents climbed 5.2% over the same period, supporting stronger rental income.
Yields did edge lower, slipping from 3.7% at the end of 2024 to 3.6% at the end of 2025, because prices rose faster than rents. Even so, yields remain well above the pandemic low of 3.2% in 2021.
For investors, yield is only one part of the equation. Borrowing capacity, cash flow buffers and loan structure also matter, because they determine how sustainable an investment is, not how profitable it looks on paper.
If you’re thinking about investing, Goodwill Finance can help you sense-check the numbers and see how an investment loan would stack up alongside your existing commitments.
If you’re shopping in the ‘affordable’ bracket, competition may be getting tougher, not easier.
Since the federal government expanded the 5% Deposit Scheme in October 2025, Cotality analysis shows homes under the scheme’s price caps have generally outperformed homes above them. In the December quarter, median prices rose 3.6% under the cap versus 2.4% above the cap.
Why would the lower end grow faster?
- Buyers moved early. Some people acted ahead of the official start date to buy before conditions got tighter.
- Borrowing limits are doing the steering. With serviceability still a hurdle, more buyers are gravitating toward properties that feel manageable week to week.
Quick reality check before you rely on the scheme
- Price caps matter (and vary by location).
- Not every lender treats the scheme the same way.
- Your borrowing limit still depends on normal credit checks.
If you’re considering a purchase under the 5% Deposit Scheme cap, contact Goodwill Finance and we will check eligibility, lender participation and what the repayments look like.
Smart investing in 2026 may be less about pushing limits and more about keeping your lending options flexible.
A few trends are already shaping how investors approach the year ahead:
- Tighter lending for bigger loans. From February, banks must limit how many higher debt-to-income loans they write, which may reduce borrowing power for some investors and make outcomes vary more from lender to lender.
- Rates still matter – even between Reserve Bank meetings. Lenders can change pricing and serviceability settings independently, which can affect your borrowing capacity and your cash flow.
- More investors are using alternative pathways. Self-managed super fund investing and rentvesting are staying popular for people balancing lifestyle choices with longer-term wealth building.
With rules and lender settings moving around, the difference often comes down to which lender you use and how the loan is set up – repayment type, offset strategy, buffers and making sure today’s choice doesn’t block tomorrow’s plans.
If you’re reviewing an investment loan or planning your next purchase, Goodwill Finance can help you structure it with flexibility in mind.
After a challenging few years for household budgets, there’s some encouraging news for borrowers.
New research from Roy Morgan shows mortgage stress has dropped to its lowest level since January 2023, indicating many households are starting to feel more comfortable with their repayments.
Even so, now’s a good time to think ahead. Building a buffer into your loan can help protect you if rates, expenses or income change down the track.
If you’re buying this year, don’t test your budget at today’s repayment only. A safer approach is to check whether you could still manage if rates rose, your expenses jumped or your income changed.
If you already have a loan, you’ve got options if cash flow feels tight:
- Refinancing to reduce the rate or improve features.
- Restructuring (term, repayment type, offsets) to smooth repayments.
- Consolidating higher-interest debts so more of your money goes to the mortgage, not interest.
Plenty of people feel cash flow pressure at times – it’s nothing to be ashamed of. The key is catching it early while you still have choices.
If you want to sense-check your repayments or make your loan more comfortable, contact Goodwill Finance to map out options that fit your situation.
With investor activity rising and new buyer schemes reshaping demand, 2026 is already off to a busy start. If you’re planning a move this year, buying, investing or restructuring, let’s talk through your options early. You can reach out by calling us at 0423 459 480 or emailing us at [email protected].
Disclaimer: The information provided is of a general nature and does not take into account your personal financial circumstances, goals, or needs. It should not be considered financial or investment advice, nor a recommendation or invitation to acquire financial products or services. You should not act solely on this information without obtaining professional financial advice tailored to your situation. Any loan application is subject to a full assessment of your financial position, as well as the lender’s terms, conditions, fees, charges, and eligibility criteria.
