Recently, at its June 2026 meeting, the Reserve Bank of Australia (RBA) retained the official cash rate at 4.35%, which was a sigh of relief for mortgage holders.

The financial regulator, APRA, still has the 3% interest rate buffer on the assessment of home loans. With recent increases in home loan interest rates, the 3% buffer now pushes lenders’ “assessment rates” a little bit further up the scale for potential borrowers, thereby restricting their potential borrowing capacity.

Currently, several banks have reduced fixed home loan rates on certain products, citing that we may have “peaked” in the interest rate cycle, and that there could be RBA cash rate reductions in the coming 12 months. We wait with bated breath.

Recently, it was reported that finance and mortgage brokers have reached a new milestone. Now, 80% of home loans submitted to lending institutions are generated by finance and mortgage brokers. This reinforces that brokers act in the clients’ best interests to find solutions that are suitable for their requirements, and not driven by lenders’ volume requirements to retain accreditation. Additionally, some banks have Introducer Programs or pipelines to push more mortgages to them.

An introducer is not a broker. They merely refer the customer to the lender and receive remuneration if the loan is settled. They do not provide any credit advice, nor arrange finance. They have none of the statutory duties and obligations that a finance or mortgage broker bears. Introducers do not comply with the National Consumer Credit Protection Act (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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