In its 11th August 2026 meeting, the Reserve Bank of Australia retained the official cash rate at 4.35%. The financial regulator, APRA, still has the 3% interest rate buffer on assessment of home loans.

In addition to the “buffer”, lenders recently adjusted their HEM’s, which further reduces the borrowing capacity of buyers. Lenders have also “scaled back” on their treatment of negative gearing on residential investment properties, to ‘rub salt into the wound.’

Recently, several banks have reduced their Variable and Fixed Home Loan rates on certain products, citing a peak in the interest rate cycle, and that there could be future RBA Cash Rate reductions in the next 12 months. We wait with bated breath.

Finance/Mortgage Brokers have now achieved 80% of all home loans submitted to lending institutions. This milestone argues that the broker is acting in the best interests of the client to find a home loan that is suitable for the clients’ needs and not driven by lenders’ volume requirements to retain their accreditation.

Some banks have an Introducer Program to push more mortgages through. An Introducer is not a broker. They merely refer the customer to the lender and get renumeration if the loan is settled. They do not provide any credit advice or arrange finance and hold no statutory duties that a finance/mortgage broker bears. The Introducer also does not comply with the National Consumer Credit Code Protection (NCCP) and only relies on a licensing exemption.

Talk to Paul today to find out how a mortgage broker can help you find the best fit for your finance requirements.

 

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