Collective Financial Solutions

Renting and buying are both getting harder at the same time – and that tension is shaping decisions across the market.

Australia’s national vacancy rate is just 1.2%, according to SQM Research, while the national median property price has climbed to a record $912,000, according to Cotality. Prices are up 9.4% over the past year and 46.1% over five years.

That combination is creating pressure.

If you’re renting

Low vacancy means competition stays strong and rent rises remain a risk at renewal time. When rents keep edging higher, the rent-versus-buy calculation can shift quickly – especially if you’re already close to servicing a mortgage.

If you’re buying

Record prices don’t mean opportunities disappear, but they do mean preparation matters more. A clear budget, realistic expectations and pre-approval can help you move confidently when the right property appears.

It’s also worth remembering that long-term growth is built over years, not months. Timing the market perfectly is far less important than choosing a loan structure that remains manageable.

Rising rents and rising prices make clarity more important. I can help you compare renting versus buying based on your numbers, not headlines, and map out a realistic next step.

Loan activity is rising again – but that doesn’t mean banks have loosened the gates.

The latest Australian Bureau of Statistics data show the number of new loan commitments (excluding refinancing) in the December 2025 quarter was 13.4% higher than a year earlier. Under the surface:
Owner-occupier activity rose 7.4%.
First home buyer loans increased 9.1%.
Investor activity jumped 23.6%, with investor loans hitting a quarterly record.

That tells us confidence is improving. But it doesn’t mean credit is flowing freely.

Lenders are still assessing serviceability carefully. Buffers remain in place. And from 1 February, limits on high debt-to-income lending add another layer of discipline at the margins.

What this means for you

More activity usually means more competition – both for property and for certain loan types. If you’re buying, your preparation matters. If you’re investing, your structure matters.

The key lesson? Rising activity rewards borrowers who understand their numbers before they step into the market.

Want clarity on how current lending conditions affect your borrowing position? I can walk you through what today’s numbers mean for your plans and compare lenders to find a structure that suits your situation.

CHECK YOUR BORROWING CAPACITY NOW

Borrowers hoping for more cuts next year may need to adjust expectations after a run of higher-than-expected inflation.

The Reserve Bank of Australia (RBA) kept the cash rate at 3.60% in December, but inflation has climbed to 3.8% after four consecutive monthly increases. If inflation remains above the 2–3% target band in 2026, the RBA is unlikely to cut rates – and some economists warn the next move could even be up.

Speaking after the decision, RBA governor Michele Bullock said: “I don’t think there are interest rate cuts on the horizon for the foreseeable future.”

Economist Warren Hogan went further, calling on the RBA to start hiking rates from the first quarter of 2026.

How this affects your loan in 2026
Coming off a fixed rate – Your repayments may jump. Reviewing your loan now can help you plan ahead and avoid pressure later.
On a variable rate – Banks can change pricing independently of the RBA. A quick comparison may uncover a sharper rate or a more stable structure.
Planning ahead – The next six months will be important as lenders adjust to shifting inflation expectations and new lending rules. Being proactive can help you stay in control of your repayments.
If you’d like clarity on how the rate outlook affects you, I can review your loan and show you your options for the year ahead.