2025 Year in Review – What to Expect in 2026

As 2025 ends, Australia’s lending environment is shifting once again and it’s creating both opportunity and urgency for homeowners, investors, and business owners.

Here’s what you need to know heading into the new year.

Rates Are Near the Bottom And Fixed Rates Are Moving First

Variable rates have fallen steadily through 2025, but we are now close to the floor.

The clearest sign: fixed rates have started rising again, and the gap between variable and fixed is narrowing rapidly.

Banks don’t lift fixed rates without a reason. It reflects their expectation that the next major movement is upward.

Some lenders still offer fixed rates below today’s variables, but this window will not stay open for long.

If you’re considering fixing, now is the time to have a conversation.

Borrowing Power Has Stabilised but Expense Models Are Changing

Most lenders have quietly increased living expenses benchmarks this year and introduced AI-driven analysis.

This means:

• Many borrowers now qualify for less under 2025 policies than 2024

• How you use your accounts matters more than ever

• Brokers (me) can structure your loan to your advantage

A quick borrowing-capacity check can make a big difference.

First Home Buyer & Government Scheme Changes

The Federal Government expanded several pathways for first home buyers, including:

• Broader eligibility for the First Home Guarantee

• Joint family and friends applications

• Higher property price caps in many suburbs

If you are a first home buyer or know someone who is these changes dramatically improve entry options.

Rightsizing: The Biggest Housing Trend of 2025

More clients than ever are moving to:

• Bigger land

• A fourth bedroom

• A proper home office

• Better school catchments

This “rightsizing” trend is particularly strong across Melbourne’s northern suburbs.

If this is on your radar, it’s worth planning ahead with competition expected to intensify in early 2026.

Green Loans & Energy Efficiency Rebates

Banks are now rewarding sustainable choices with:

• Lower rates for green-certified homes

• Cheaper personal loans for solar/battery upgrades

• Commercial sustainability-linked loan discounts

This is a fast-growing space and worth considering if you’re upgrading or renovating.

Time for a mortgage check-up?

Reviewing your home loan from time to time is a good way to check it is still helping you achieve your financial goals and has all the features you need.

Arrange an obligation free appointment with our trusted broker, Robert, today.

Call 0414 941 115 or email rob@loanstriker.com.au to discuss your options. If you prefer, book an appointment online.

The information provided is general in nature and does not constitute personal financial product advice. It does not take into account your objectives, financial situation, or needs. Before acting on any information, you should consider its appropriateness in light of your own circumstances.