The dream is alive

The Australian dream of owning our home is proving resilient, new research shows.

The latest Home Loan Report from Mortgage Choice has revealed that almost one in two (42 per cent) respondents plan to buy property in the next 12 months despite a complex economic landscape and uncertainty around rate rises.

When asked what would make them feel more confident about buying in 2026, prospective buyers said their confidence would lift with income growth, property prices stabilising, and more properties becoming available in their preferred area or price range.

The impact of the government’s 5 per cent Deposit Scheme is undeniable, with 28 per cent of prospective first-time buyers saying the expanded scheme brought their plans forward, and 7 per cent saying it has enabled a purchase they weren’t previously planning.

Mortgage Choice CEO Anthony Waldron is unsurprised by the results.

“In 2025 we saw the cash rate reduce three times before the RBA hit the brakes and held the rate steady at 3.60 per cent”, Waldron said.

“We’ve also seen wage growth slow, and home prices reach new record highs, with national home prices rising nearly 9 per cent over the year. So, I think it’s understandable that more Australians would be looking to their paychecks and property prices and availability to feel more confident about their purchase plans”, he added.

The survey found that in the past 12 months, the cost of mortgage repayments or saving for a deposit has impacted the relationships of a large number of respondents, with changes made including:
- 29 per cent tend to stay in instead of going out on dates;
- 24 per cent reduced how often they go on date nights;
- 24 per cent spend less on gifts for birthdays / anniversaries; and
- 13 per cent say one or both has taken on extra work or hours to manage repayments / save faster.

When it comes to mortgage repayments, 40 per cent of prospective buyers plan to split them evenly and 18 per cent plan to split repayments based on income, with the higher earner contributing a greater share toward mortgage repayments. The survey revealed that 47 per cent of prospective buyers plan to split upfront purchase costs, such as the deposit and stamp duty, 50/50.

Happily, most borrowers are proactively managing their home loan.

“We asked respondents with a mortgage how they would manage if their variable rate increased by 25 basis points and 35 per cent said they could handle it easily without changing their spending, while 43 per cent say they could manage but would need to cut back on their discretionary spending”, Waldron said.

“However, 13 per cent of borrowers said they would struggle to meet their home loan repayments and would need to dip into their savings if their interest rate rose by 25 basis points.

“The Reserve Bank’s decision to lift the cash rate at its February monetary policy meeting is a timely reminder that if you’re worried about how rate hikes might impact your lifestyle, being proactive is your best defence.

“Reach out to a mortgage broker to learn how you can prepare for future rate rises”, he advised in conclusion.