First Select Finance

𝗔𝘂𝘀𝘁𝗿𝗮𝗹𝗶𝗮𝗻𝘀 𝗮𝗿𝗲 𝗦𝗲𝗮𝗿𝗰𝗵𝗶𝗻𝗴 𝗳𝗼𝗿 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗵𝗲𝗹𝗽 𝗶𝗻 𝗥𝗲𝗰𝗼𝗿𝗱 𝗡𝘂𝗺𝗯𝗲𝗿𝘀

Google Trends data shows searches for "mortgage broker" in Australia have reached an all-time high, surpassing even the peak recorded during the COVID lockdowns of 2020.

Searches for "mortgage stress" hit their highest point in May, while queries for "mortgage help" have exceeded levels seen during the 2008-09 Global Financial Crisis.

The surge comes as some homeowners feel financial pressure. Three rate hikes since the start of 2026 have reversed all of last year’s rate relief, pushing the cash rate back to 4.35 per cent. According to Canstar, those increases have added $272 per month to repayments on a $600,000 loan with 25 years remaining.

Roy Morgan research from March found 26.8 per cent of mortgage holders, around 1.45 million Australians, are now at risk of mortgage stress. That figure could climb further if rates rise again at upcoming RBA meetings.

If you're feeling stressed from your mortgage, a Mortgage Broker can review your current loan and help you compare your options across a range of lenders.

𝗪𝗵𝗮𝘁’𝘀 𝘁𝗵𝗲 𝘀𝘁𝗮𝘁𝗲 𝗼𝗳 𝘁𝗵𝗲 𝟮𝟬𝟮𝟲 𝗙𝗲𝗱𝗲𝗿𝗮𝗹 𝗕𝘂𝗱𝗴𝗲𝘁 𝗳𝗼𝗿 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆?

The 2026 Federal Budget proposed the most significant changes to residential property tax settings in a generation.

The key negative gearing and capital gains tax changes are not yet law. The government introduced the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 to Parliament on 28 May, and it has been referred to the Senate Economics Legislation Committee, expected to report by the end of June.

A Senate voting window is anticipated between 22 June and 2 July before Parliament rises for winter. Until the legislation passes, the final form of these measures may still change.

With that context in mind, here is what is known.

𝗡𝗲𝗴𝗮𝘁𝗶𝘃𝗲 𝗴𝗲𝗮𝗿𝗶𝗻𝗴 𝗶𝘀 𝗣𝗿𝗼𝗽𝗼𝘀𝗲𝗱 𝘁𝗼 𝗖𝗵𝗮𝗻𝗴𝗲

If passed, from 1 July 2027, negative gearing for residential property will be limited to newly built homes. Investors buying established properties after 12 May 2026 will no longer be able to offset rental losses against other income, although losses can be carried forward. Existing investment properties are grandfathered, allowing current owners to keep existing negative gearing benefits. The change aims to encourage investment in new housing supply.

𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗮𝗶𝗻𝘀 𝗧𝗮𝘅 𝗶𝘀 𝗯𝗲𝗶𝗻𝗴 𝗿𝗲𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲𝗱, 𝗻𝗼𝘁 𝗿𝗲𝗺𝗼𝘃𝗲𝗱

From 1 July 2027, the 50% CGT discount is proposed to be replaced with inflation-adjusted indexation and a minimum 30% tax rate. Existing capital gains accrued before that date will keep the current 50% discount. The main residence CGT exemption and superannuation tax rules remain unchanged. Investors in new builds may choose whichever method provides the better tax outcome.

𝗦𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 𝗳𝗼𝗿 𝗙𝗶𝗿𝘀𝘁 𝗛𝗼𝗺𝗲 𝗕𝘂𝘆𝗲𝗿𝘀 𝗿𝗲𝗺𝗮𝗶𝗻𝘀 𝗶𝗻 𝗽𝗹𝗮𝗰𝗲

The expanded 5% Deposit Guarantee Scheme remains in place, allowing eligible buyers to purchase with a 5% deposit and avoid LMI. The ban on foreign investors buying existing homes has been extended to 30 June 2029, while new builds remain open to foreign investment. Proposed tax changes are not yet law and may change, so professional financial advice should be sought before making investment decisions.