Aussie house prices set to flatten in 2026. Find out what it means for your borrowing power and book a free chat with Laxmi Home Loans.
Australia’s housing market is losing momentum. Commonwealth Bank economists report that price growth has slowed sharply over the past two months. Auction clearance rates have fallen, and homes are taking longer to sell. Three interest rate rises from the Reserve Bank, combined with new Federal Budget changes to negative gearing and capital gains tax, are weighing on buyer and investor confidence. CBA now expects national house prices to stay broadly flat for the rest of this year
WHAT THIS MEANS FOR YOU
The slowdown is not even across the country. Sydney and Melbourne are expected to see price declines this year, as softer sentiment and weaker investor demand take hold. Brisbane and Perth are forecast to hold up better, since supply and demand are more closely matched in those cities. CBA economists also flagged a small chance that some buyers who purchased homes just before the Budget changes could end up in negative equity, though they stress this is unlikely to be widespread.
For first home buyers, a quieter market can work in your favour. Less competition at inspections and auctions gives you more time to research suburbs, compare lenders, and negotiate on price. For property investors, the changes to negative gearing and capital gains tax are worth discussing with your accountant and mortgage broker before your next purchase. For anyone with an existing home loan, especially if a fixed rate period is ending soon, this is a good time to check whether your current loan still suits your circumstances.
Supply remains the bigger, longer-term issue. High construction costs, planning delays, and infrastructure bottlenecks mean new housing is not being built fast enough to meet demand. CBA expects this to keep underpinning prices over time, even as the market cools in the short term.
WHAT DOES THIS MEAN FOR MY BORROWING POWER?
Higher interest rates reduce how much you can borrow, because lenders assess your ability to repay at a buffer above the current rate. If you are planning to buy, refinance, or your fixed rate is ending soon, ask a broker to recalculate your borrowing capacity now. Your actual borrowing power will always depend on lender assessment and your individual circumstances, so speak to a licensed mortgage broker before making any decisions.
WHY A MORTGAGE BROKER MATTERS RIGHT NOW
When market conditions shift, the right loan structure matters more than ever. Laxmi Home Loans compares options across more than 20 lenders, including CBA, NAB, Westpac, ANZ, Pepper Money, and Liberty. We look at your full financial picture, not just the headline rate, so you can make a confident and informed decision. Whether you are buying your first home, growing your investment portfolio, or reviewing your current loan, we are here to help you understand your options.
| Feature | Going Direct to a Major Bank | Laxmi Home Loans |
|---|---|---|
| Number of lenders | One bank only | 50+ banks and lenders |
| Loan comparison | Limited to one lender’s products | Compare multiple lenders to find the right fit |
| Borrowing power | One servicing policy | Compare lenders with different servicing policies |
| Assessment rate | Usually uses the bank’s own policy | We can compare lenders, including some that assess using a lower servicing buffer where policy permits* |
| Assistant in Nursing (AIN) income | Depends on the bank | We can identify lenders that may accept up to 100% of eligible base income* |
| Disability Support Worker income | Depends on the bank | We can identify lenders with more favourable income assessment policies* |
| Hospital cleaning staff income | Depends on the bank | We can compare lenders that may use 100% of eligible base income* |
| Overtime and penalty rates | Varies | Compare lenders with different income shading policies |
| Casual employment | Varies | Compare lenders with flexible casual employment policies |
| Self-employed borrowers | Varies | Access lenders with specialist self-employed solutions |
| Credit history | Bank policy only | Some lenders may consider small paid defaults or minor late repayments* |
| Low deposit options | Limited | Compare lenders offering low deposit solutions, including eligible government schemes |
| LMI waivers | Limited | Access lenders offering LMI waivers for eligible professions |
| Interest rates | One offer | Compare rates and negotiate where possible |
| Offset accounts | Bank products only | Compare offset features across multiple lenders |
| Loan features | One product range | Compare features from multiple lenders |
| Ongoing support | Bank relationship | Ongoing reviews and refinance opportunities |
| Cost to you | Bank products only | No broker fee for most residential home loans |
Lending policies vary between lenders and are subject to change without notice. Approval depends on your individual financial circumstances, credit assessment, and lender policy. Not all applicants will qualify for these lending options.
• Access to specialist lenders that many borrowers don't know about.
• We compare lender policy, not just interest rates.
• Different lenders can produce significantly different borrowing capacities.
• We help package your application to maximise approval chances.
• We liaise with the lender from application through to settlement.
• We continue to review your loan after settlement to ensure it remains competitive.
What Our Nepali Nurse Clients Say
Registered Nurse ( RN ) Mr M Tharu – Clarkson, Perth WA “Proactive and clear guidance. Thank you so much, Kishor dai and your team for helping us to secure our first home. You guided us where to move and where to stop to secure a great deal. You are not only a broker but also an expert in market knowledge, negotiation skills, and professionalism. Much appreciated by you and your team.” Source
Registered Nurse ( RN ) Ms P Sherpa – Butler, Perth WA “Great communication and made the process smooth. Professional, knowledgeable, and always available to answer our questions. Their guidance made the entire process smooth. Thank you, Kishor dai.” Source
Registered Nurse ( RN ) Mr B Dawai – Dubbo, NSW “Our experience with Laxmi Home Loans was outstanding, with excellent communication. From purchasing the land to final settlement and even beyond, Kishor ji and Gopal ji were incredibly supportive, professional, and always ready to help whenever needed. Kishor ji’s friendly and highly communicative nature stood out — he was available almost 24/7 to answer questions and guide us through every stage. Their market knowledge, transparency, and problem-solving skills turned what felt overwhelming into a smooth and stress-free journey. We highly recommend Laxmi Home Loans, especially Kishor ji, to anyone looking to begin their home ownership journey in Australia with trust and confidence.” source
Frequently Asked Questions
Next Steps
Speak with us in English, Nepali, or Hindi. Book a free consultation, and we will assess your eligibility across more than 50 banks and lenders at no cost to you.
Ready to talk through your options? Book a free consultation, and we will walk you through fixed, variable, and split-rate options based on your numbers, not generic averages.
Disclaimer: This article is for general information only and does not consider your personal objectives, financial situation or needs. It is not financial advice. Lender policies, income thresholds and LVR limits vary and are subject to change. Speak with a qualified mortgage broker before making any borrowing decisions. Laxmi Home Loans is the trading name of Mero Chino Groups Pty Ltd, ABN 76 169 013 012, Credit Representative No. 476974 under Australian Credit Licence 383640.
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