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Created: 24 February 2026

It’s shaping up to be a decisive start to the year. Borrowing is rising, repayments are shifting and competition isn’t easing. Here’s what’s catching my eye:

• Borrowing activity lifts, but standards hold
• Rates rise as lenders move fast
• Tight rentals meet record prices
• New debt caps reshape loan approvals

Keep reading for all the news.

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Borrowing activity picks up pace

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.

Rates are rising - Here's what changed

Borrowers are now feeling the impact of February’s rate move.

Since the Reserve Bank of Australia (RBA) lifted the cash rate on 3 February, many lenders – including all four major banks – have increased their variable rates. That means the typical variable borrower is now paying more in interest.

And it didn’t start there.

Several lenders had already begun lifting fixed rates in the weeks before the RBA decision, pricing in the likelihood of a move. So even borrowers locking in recently may have secured higher rates than they would have late last year.

How this change is playing out

• Variable rates tend to move quickly after RBA changes.
• Fixed rates often move in advance.
• Not all lenders adjust at the same pace or by the same amount.

This is why comparison matters.

Even in a rising-rate environment, pricing gaps between lenders can be meaningful. Loan structure – offsets, repayment type and flexibility – can also make a noticeable difference over time.

If you’d like me to check whether your current rate is still competitive in today’s market, get in touch and I’ll run the numbers for you.

Tight rentals and record prices collide

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.

 High-debt lending now capped

New debt-to-income (DTI) limits have taken effect as of 1 February, creating a guardrail around the riskiest home loans.

From this month, APRA, the banking regulator, will ensure that authorised deposit-taking institutions keep high-DTI loans to no more than 20% of their new mortgage lending in both owner-occupier and investor segments. A ‘high-DTI’ loan is one where your total debts are six times your annual income or more.

This isn’t a ban – but a cap. Lenders can still write high-DTI mortgages, just not above the set limit.

Where borrowers may feel the impact

These limits aim to contain emerging financial risks as housing credit and prices climb from already high levels. APRA has observed a modest rise in higher-geared lending, especially from investors, and wants to ensure vulnerabilities don’t build up across the system.

Limits like this don’t change your credit score or eligibility by themselves – but they can influence how lenders assess applications under different risk appetites.

If you’re planning a purchase this year, understanding how lenders assess your income and debt together can help you position your application for a more competitive outcome.

I am a Mortgage Broker with over 30 years experience, I can help first home buyers buy their 1st home, home buyers buy their second, third or fourth home, investment property investors and people who want to build a home. 

Based in Victoria Point, I have helped clients all over Australia purchase a home including Gold Coast, Brisbane, Cleveland, Redland Bay, Thornlands, Thorneside, Ormiston, Alexandra Hills, Mt Cotton, Victoria Point, Wellington Point, Birkdale, Shailer Park and the greater Logan area.