Home Loan Cashback Offers: Read the Fine Print Before You Switch

This article first appeared on awesomelendingsolutions.com.au.

Cashback offers are a popular way for lenders to attract new customers. A few thousand dollars in your account can be tempting, especially when budgets are tight. But a cashback isn't always the great deal it seems. Here's what you need to know before you switch.

What is a home loan cashback?

A cashback is a one-off payment from a lender when you take out a new home loan, often when you refinance. Offers usually range from $1,000 to $4,000, sometimes more for large loans.

Why lenders offer cashbacks

Lenders use cashbacks to win new customers, especially refinancers. They're hoping you'll stay for many years, which makes the cashback worthwhile for them.

The catch: the rate

The most important question is: is the interest rate competitive?

If a cashback loan has a higher rate than other loans, the extra interest can quickly outweigh the cashback.

Example:

• Loan A: 6.29% with a $3,000 cashback
• Loan B: 6.09% with no cashback
• Loan size: $600,000

The 0.2% difference costs about $1,200 a year. After about two and a half years, Loan A costs more than Loan B, even after the cashback.

Common cashback conditions

Read the fine print. Cashbacks often require:

• A minimum loan amount – often $250,000 or more
• A maximum LVR – often 80%
• Settlement within a deadline – sometimes 60 to 120 days
• Owner-occupied or principal and interest loans only
• One cashback per household or application
• Applying through certain channels – not all cashbacks are available everywhere
• Keeping the loan for a minimum period – some lenders may claw back the cashback if you leave early

Other costs to compare

• Application and settlement fees
• Annual package fees
• Discharge fee from your old lender
• Break costs if you're on a fixed rate
• LMI if your LVR is above 80%

When a cashback is a good deal

A cashback can be great value if:

• The rate is also competitive
• The fees are low
• The loan has the features you need
• You plan to keep the loan long enough, but may review it again later
• It covers your switching costs

Cashbacks and frequent refinancing

Some borrowers "churn" between lenders to collect multiple cashbacks. This can work, but each switch involves:

• A credit enquiry
• Paperwork and time
• Possible costs
• A risk of being approved for less if your situation has changed

It's usually better to focus on getting a great rate and reviewing it regularly.

Cashbacks in 2026

With the cash rate at 4.60% after four rises in 2026, many borrowers are looking to refinance, and lenders are competing hard with cashbacks. But in a higher rate environment, a small rate difference is worth more than ever. Focus on the rate first.

An example

Olivia is offered a $4,000 cashback to refinance her $550,000 loan at 6.34%. Her broker finds another lender at 6.14% with no cashback but no fees.

• The 0.2% difference saves her about $1,100 a year.
• After just under four years, the lower-rate loan is ahead.
• She plans to keep her loan for at least five years, so she chooses the lower rate.

A simple test

Ask yourself: "If there was no cashback, would I still choose this loan?" If the answer is no, think carefully.

Questions to ask the lender

• What exactly do I need to do to qualify?
• When will the cashback be paid?
• Can it be clawed back if I leave early?
• Is the rate the same as for borrowers who don't get the cashback?

A quick cashback checklist

• Compare the rate with similar loans that have no cashback
• Add up all fees on the new loan
• Include your switching costs
• Check the deadline and conditions
• Ask about clawbacks
• Work out the break-even point

If the cashback loan still comes out ahead after all of this, it may be a good deal. If not, the lower-rate loan is usually the smarter choice over the long term.

Frequently asked questions

Are cashbacks taxable?

For owner-occupied loans, cashbacks are generally not treated as income. For investment loans, they may affect the cost base or deductions. Ask your accountant.

Can I get a cashback through a broker?

Many lenders offer cashbacks through brokers. Some offers are direct only.

Should I refinance just for a cashback?

Only if the overall loan is competitive.

What if my lender offers a cashback to stay?

Compare the total cost with the alternatives, just as you would for a new lender. A retention offer can be a good result if the rate is also sharp.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Why Choosing a Home Loan Isn't All About the Interest Rate

This article first appeared on awesomelendingsolutions.com.au.

It's natural to focus on the interest rate when choosing a home loan. After all, it has a big impact on your repayments. But the loan with the lowest rate isn't always the best loan for you. Here's what else matters, and why.

1. Fees

A low rate can come with fees that add up:

• Application or establishment fees
• Annual package fees
• Monthly account fees
• Discharge fees when you leave

On smaller loans, fees can matter more than a small difference in rate. That's why the comparison rate, which includes most fees, is a better guide than the headline rate.

2. Features you'll actually use

Offset account

If you keep savings, an offset account can save more than a slightly lower rate. For example, $40,000 in offset at 6.2% saves around $2,480 a year in interest.

Extra repayments

If you want to pay off your loan faster, make sure you can make extra repayments without penalty.

Redraw

Lets you access extra repayments in an emergency.

Split loans

Lets you combine fixed and variable rates.

3. Flexibility

Life changes. You might have a baby, change jobs, renovate or invest. A flexible loan can adapt. Some low-rate loans have strict limits that cost you later.

4. Lender policy

The lowest-rate lender might not accept:

• Your type of income (casual, self-employed, contractor)
• Your property type
• Your deposit source
• Government schemes like the 5% Deposit Scheme

A loan you can't get approved for is no use, however low the rate.

5. How the lender treats existing customers

Some lenders offer sharp rates to new customers, then let rates drift higher. Others keep rates competitive for existing customers. Over many years, this can matter more than your starting rate.

6. Service and turnaround times

If you're buying at auction or have a tight settlement, a slow lender can cost you the property. Service matters, especially when things get complicated.

7. Honeymoon rates

Introductory rates that jump after one or two years can look attractive but cost more over time. Always ask what the rate will be after the intro period.

8. Cashback offers

Cashback can be helpful, but it shouldn't hide a higher rate. A 0.15% higher rate on a $600,000 loan costs about $900 a year.

9. Your long-term goals

If you plan to invest later, structure and features like offset become more important. If you plan to sell in two years, low fees and no break costs may matter more.

An example

Two loans for $600,000:

Loan A: 6.04%, no offset, $0 fees, slow turnaround, strict policy

Loan B: 6.14%, full offset, $395 annual fee, fast turnaround, flexible policy

Sam has $35,000 in savings. With Loan B, his offset saves around $2,150 a year, which more than covers the higher rate and fee. Loan B is also more likely to approve his overtime income. For Sam, Loan B is the better loan.

Rates still matter

None of this means rates don't matter. With the cash rate at 4.60% after four rises in 2026, rates matter a lot. The point is that the best loan balances rate, cost, features and fit.

Why the Best Interests Duty matters

Mortgage brokers must act in your best interests. That means considering your goals, needs and preferences, not just finding the lowest rate. A broker should explain why a loan suits you, and what trade-offs are involved.

Questions to ask beyond the rate

• What is the comparison rate?
• What are all the fees, now and later?
• Which features are included, and will I use them?
• Does this lender accept my income and property type?
• How does this lender treat existing customers over time?

A simple way to compare

Write down the rate, fees, features and policy fit of each loan side by side, then estimate the total yearly cost for your situation, including any offset savings. The loan with the lowest total cost and the best fit for your life is usually the winner, even if its headline rate isn't the lowest.

Frequently asked questions

Should I always choose the lowest rate?

Not always. Consider fees, features, flexibility and lender policy.

What's the comparison rate?

A rate that includes most fees, based on a standard example. It's a better guide to cost than the advertised rate.

Is an offset account worth the fee?

If you keep enough savings in it, usually yes.

How can I compare all these factors?

A broker can model the total cost and benefits for your situation.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Why Your Home Loan Structure Is So Important

This article first appeared on awesomelendingsolutions.com.au.

Most people focus on the interest rate when choosing a home loan. But how your loan is set up, its structure, can matter just as much. A good structure can save you tax, give you flexibility and help you reach future goals. A poor one can cost you thousands and limit your options. Here's why loan structure is so important.

What is loan structure?

Loan structure is how your borrowing is organised. It includes:

• How many loan splits you have
• Fixed or variable portions
• Principal and interest or interest-only
• Offset and redraw arrangements
• Which properties secure which loans
• Whose names are on the loans and titles

1. Split loans for different purposes

If you borrow for different reasons, such as your home, an investment, renovations or a car, it's best to keep them in separate splits. This:

• Makes it easy to track deductible and non-deductible interest
• Helps you pay down personal debt faster
• Keeps your records clean for your accountant

Mixing purposes in one loan can make it very hard to claim interest correctly.

2. Offset vs extra repayments

If you might rent out your home one day, keeping savings in an offset account instead of paying down the loan can protect future tax deductions. Paying down the loan and then redrawing for personal use usually means the redrawn amount isn't deductible.

3. Fixed and variable splits

Splitting between fixed and variable can give you:

• Certainty on part of the loan
• Flexibility, offset and extra repayments on the rest

With the cash rate rising four times in 2026, many borrowers are using splits to balance certainty and flexibility.

4. Avoiding cross-collateralisation

Cross-collateralisation is when one lender uses more than one of your properties as security for your loans. It can:

• Make it harder to sell one property
• Give the lender control over your equity
• Make refinancing more complicated

Where possible, each property should secure its own loan. If you need to use equity from one property, consider a separate loan secured only by that property.

5. Interest-only vs principal and interest

For investors, keeping investment loans interest-only and paying down the home loan first can make sense, because home loan interest isn't deductible. But this depends on your goals and cash flow.

6. Ownership

Whose name is on the title and loan affects:

• Tax on rental income and capital gains
• Borrowing power
• Asset protection
• First home buyer eligibility

Get advice from your accountant before buying.

7. Planning for the future

A good structure considers where you want to be in five or ten years. If you plan to invest, upgrade or start a business, set up your loans so they support those goals.

How the 2026 tax changes make structure more important

The 2026 laws limit negative gearing for established residential properties bought after 7:30pm on 12 May 2026. Losses on these properties are quarantined from 1 July 2027. Properties held before then keep the existing treatment. Clean, separate loan splits make it easier to track which interest relates to which property, which is now more important than ever.

An example

Jess and Matt own their home and want to buy an investment property.

Poor structure:

• One loan with their bank, secured by both properties
• Investment deposit mixed into their home loan
• Savings used to pay down the home loan, then redrawn

Better structure:

• Home loan with an offset account
• Separate equity split for the investment deposit, secured by their home
• Separate investment loan secured by the investment property
• Investment loans with a different lender where possible

The better structure keeps deductions clear, protects flexibility and makes future borrowing easier.

Fixing a poor structure

If your loans are already tangled, it's often possible to fix them. Refinancing to separate securities, splitting loans or moving one loan to another lender can untangle things. It's best done with your broker and accountant working together.

Structure checklist

• Separate splits for each purpose
• Offset on the home loan
• Each property securing its own loan

Frequently asked questions

Can I fix a poor structure later?

Often, yes, by refinancing or restructuring. But some tax consequences can't be undone, so it's best to get it right early.

Is cross-collateralisation always bad?

Not always, but it reduces flexibility. Many investors prefer to avoid it.

How many splits should I have?

As many as you have different purposes, within reason. Your broker can help.

Who should help with structure?

A broker for the loans and an accountant for tax.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

When Should You Start the Home Loan Process?

This article first appeared on awesomelendingsolutions.com.au.

Many people wait until they've found a property before they think about their home loan. That's often too late. The best time to start the home loan process is much earlier than most people expect. Here's a timeline to help you get ready.

Why start early?

Starting early helps you:

• Know your real budget before you fall in love with a property
• Fix problems with your credit or finances
• Build a stronger deposit and savings history
• Find out which government schemes you qualify for
• Act quickly when you find the right home

12 months or more before buying

This is the ideal time to have your first chat with a broker. At this stage you can:

• Set a savings goal – based on your target price and scheme eligibility
• Check your credit report – and fix any errors
• Plan for genuine savings – many lenders want to see savings built over at least three months
• Consider the First Home Super Saver Scheme – it works best if you start contributing well before you buy
• Reduce debts – pay down credit cards and avoid new loans

6 to 12 months before buying

• Keep your job stable – lenders prefer at least a few months in your current role, and some require you to be past probation
• Track your spending – lenders look at your bank statements
• Cancel unused subscriptions and reduce discretionary spending
• Research suburbs – and check scheme price caps
• Talk about family help – if a guarantor or gift is part of your plan

3 to 6 months before buying

• Gather documents – payslips, bank statements, ID, debt statements
• Get pre-approval – ideally fully assessed
• Line up your team – conveyancer, building inspector, possibly a buyer's agent
• Attend open homes and auctions to get a feel for prices

When you find a property

• Tell your broker before you make an offer or bid
• Get the contract reviewed by your conveyancer
• Organise inspections
• Check the property suits your lender (some lenders have rules on small units or certain locations)

After exchange

• Formal approval – the lender values the property
• Sign loan documents
• Arrange insurance
• Prepare for settlement

Refinancing timeline

If you're refinancing, start:

• 2 to 3 months before your fixed rate ends
• Any time you notice your rate is higher than market rates
• At least once a year for a review

Starting early in 2026

2026 has shown how quickly things can change. The cash rate rose four times, lifting assessment rates and reducing borrowing power for many buyers. The 5% Deposit Scheme expanded, and APRA introduced a debt-to-income limit. Talking to a broker early means you can plan around these changes instead of being surprised by them.

An example

Lily wants to buy her first home in about a year. She speaks to a broker now.

• Her broker shows her she'll qualify for the 5% Deposit Scheme.
• She learns that her $8,000 credit card limit is reducing her borrowing power, so she lowers it to $2,000.
• She starts salary sacrificing into super for the First Home Super Saver Scheme.
• Twelve months later, she's pre-approved, organised and ready to buy.

Signs you're ready to start

• You're thinking about buying in the next one to two years
• You're unsure how much you can borrow
• You want to know which schemes you qualify for
• You have debts or credit issues to sort out
• Your fixed rate is ending soon

What does an early chat cost?

Usually nothing. Most brokers are happy to have an initial conversation at no cost, even if you're a year or more away from buying. It's a low-risk way to get a clear plan and avoid surprises later.

A simple countdown checklist

• 12 months out: first broker chat, credit check, savings plan
• 6 months out: stable job, tracked spending, suburb research
• 3 months out: documents ready, pre-approval, team lined up
• Ready to buy: inspections, contract review, offer or bid

Following this countdown means you'll be ready to move when the right home comes along, rather than scrambling to catch up.

Frequently asked questions

Is it too early to talk to a broker if I'm two years away?

No. It's a great time to plan your savings and finances.

Will talking to a broker affect my credit score?

No. A conversation doesn't involve a credit check. A check only happens when you apply.

How long does pre-approval last?

Usually three to six months.

Should I get pre-approval before I start looking?

Yes, ideally before you start looking seriously, so you know your budget.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

How the Cash Rate Affects Your Home Loan in 2026

This article first appeared on awesomelendingsolutions.com.au.

The Reserve Bank's cash rate decisions make headlines because they affect millions of home loans. A few years ago, the focus was on record low rates. In 2026, the story has changed. Here's what the cash rate is, how it affects your home loan and what you can do about it.

What is the cash rate?

The cash rate is the interest rate set by the Reserve Bank of Australia (RBA) for overnight loans between banks. It's the RBA's main tool for managing inflation and the economy.

• When inflation is too high, the RBA tends to raise the cash rate.
• When the economy needs support, the RBA tends to lower it.

What's happened in 2026?

The RBA raised the cash rate four times in 2026: in February, March, May and September. On 29 September 2026, it increased the cash rate by 0.25% to 4.60%, its highest level since 2011. The RBA said inflation was still too high and that it may raise rates again if needed.

How the cash rate affects your home loan

Variable loans

Most lenders change their variable rates soon after the RBA moves. If your rate rises by 0.25%, on a $600,000 loan your repayments rise by roughly $100 a month.

After four rises of 0.25% in 2026, someone with a $600,000 variable loan could be paying around $390 more each month than at the start of the year.

Fixed loans

Fixed loans don't change during the fixed period. But when your fixed term ends, your new rate will reflect current conditions. Many borrowers who fixed when rates were lower are now facing higher repayments.

Borrowing power

Lenders test new loans at your rate plus 3%. When rates rise, the test gets harder, and borrowing power falls.

Savings and offset

Higher rates mean savings accounts pay more interest, and every dollar in an offset account saves more.

What about when rates are low?

When the cash rate is low:

• Repayments fall
• Borrowing power rises
• Property prices often rise
• Savings earn less

Australia saw record low rates in 2020 and 2021. Many people bought or fixed during that time. The rate rises that followed, and again in 2026, show how quickly conditions can change. That's why lenders test borrowers at a higher rate than the one they're actually paying.

How the cash rate affects property prices

Higher rates usually reduce borrowing power and demand, which can slow or reverse price growth. In 2026, national home values have fallen for six months in a row, and Sydney values were about 8.6% below their February peak by the end of September.

How to protect your budget

1. Check your rate

Lenders don't always offer existing customers their best rates. Ask for a rate review or compare the market.

2. Build a buffer

Keep savings in an offset account to reduce interest and give you breathing room.

3. Make extra repayments

If you can, pay a little extra now. You'll be ahead if rates rise again.

4. Consider a split loan

Fixing part of your loan can provide certainty.

5. Review your budget

Cut unused subscriptions and non-essential spending.

6. Talk to your lender early

If you're struggling, contact your lender. They must consider hardship requests.

An example

Daniel has a $600,000 variable loan. At the start of 2026, his rate was 5.64%, with repayments of about $3,460 a month. After four rises, his rate is 6.64%, with repayments of about $3,850.

He refinances to 6.14%, bringing his repayments down to about $3,650, and keeps paying $3,850 so he stays ahead.

Understanding RBA announcements

The RBA announces its decisions at 2:30pm on the second day of each meeting. Lenders usually announce their own changes within days, and new rates often apply from a set date a week or two later. Your lender must tell you about any change to your repayments.

Frequently asked questions

How often does the RBA meet?

Eight times a year. Each meeting runs over two days, with the decision announced on the second day.

Do lenders always pass on rate changes?

Usually, but not always in full, and the timing can vary.

Will rates go down?

No one knows for sure. The RBA has said further rises are possible if inflation stays high.

Should I fix my rate now?

It depends on your budget and need for certainty. A broker can compare fixed, variable and split options, and show you what each would mean for your monthly repayments.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Avoid Over-Capitalising: How to Renovate Without Losing Money

Updated October 2026 by Albert Waldron, Awesome Lending Solutions. This article first appeared on awesomelendingsolutions.com.au.

Renovating can make your home more comfortable and more valuable. But it's easy to spend more on a renovation than it adds to your property's value. This is called over-capitalising. Here's how to spot the risk and how to avoid it.

What is over-capitalising?

Over-capitalising happens when the cost of a renovation is more than the value it adds. For example, if you spend $150,000 on a renovation but your home's value only rises by $80,000, you've over-capitalised by $70,000.

Why it happens

• Your home outgrows the street. Every suburb has a price ceiling. A luxury renovation in a modest street may not be valued much higher than nearby homes.
• Very personal choices. Bold designs, unusual layouts or expensive features may not appeal to future buyers.
• Cost blowouts. Variations, delays and rising building costs can push the final bill well past the budget.
• Renovating the wrong things. Some improvements add more value than others.

Is over-capitalising always bad?

Not always. If you plan to stay for many years and the renovation makes your life better, it may be worth it to you. The key is to decide with your eyes open, knowing how much of the cost you may not get back.

How to avoid over-capitalising

1. Research local prices. Find out what renovated homes in your street and suburb sell for.
2. Set a budget based on value. Work out the likely value after the renovation, then set a budget that leaves room for a sensible gain.
3. Focus on high-value improvements. Kitchens, bathrooms, an extra bedroom, better layout and street appeal often add the most value.
4. Get several fixed-price quotes from licensed builders.
5. Add a 10% to 20% contingency for surprises.
6. Talk to a local agent or valuer about what buyers in your area want.

Funding a renovation

Many people use equity in their home to renovate, through a loan top-up, a refinance or a construction loan for larger projects. With the cash rate at 4.60% after four rises in 2026, borrowing more means higher repayments, so make sure the extra cost fits your budget. Home values have also softened in many areas this year, so your usable equity may be lower than you expect. Get a current valuation before you plan.

An example

Lucy and Ben's home is worth $1.1 million. Similar renovated homes in their street sell for about $1.25 million. They were planning a $250,000 renovation, which would likely over-capitalise by around $100,000. Instead, they spend $110,000 on a new kitchen, bathroom and landscaping. The likely value rises to about $1.23 million, so they get most of their money back and a home they love.

Frequently asked questions

Which renovations add the most value?

Kitchens, bathrooms, extra bedrooms, improved layouts and street appeal usually add the most.

Can a lender value my home after the renovation?

For construction loans, lenders value the home "as if complete". For simple top-ups, they use the current value.

Should I renovate before selling?

Small, cosmetic updates like paint and gardens often help. Big renovations right before selling rarely pay for themselves.

Talk to Awesome Lending Solutions

Planning a renovation? We can help you work out how much equity you can use, compare funding options and set up your loan so repayments stay comfortable. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Financial Resolutions: A Simple Money Reset for the Year Ahead

Updated October 2026 by Albert Waldron, Awesome Lending Solutions. This article first appeared on awesomelendingsolutions.com.au.

New Year is a popular time to set goals, but you don't need to wait for January to get your finances in shape. Whether it's the start of the year or just the start of a new month, a simple money reset can make a real difference. Here's an easy way to set financial goals you'll actually keep.

Step 1: Write down your goals

Goals feel more real when they're written down. Take five minutes and fill in these lines:

My top 3 personal goals for the next 12 months are:

1. _________________
2. _________________
3. _________________

My top 3 financial goals for the next 12 months are:

1. _________________
2. _________________
3. _________________

Make each one specific. "Save more" is hard to measure. "Save $15,000 towards a home deposit by December" is clear.

Step 2: Revisit your budget

Living costs and interest rates have changed a lot. The cash rate rose four times in 2026 to 4.60%, so many households are paying more on their home loans than a year ago. Look at:

• What comes in each month
• Your fixed costs, like rent or mortgage, bills and insurance
• Everyday spending, like food, transport and entertainment
• Subscriptions you no longer use

Small changes add up. Cutting $150 a month in unused subscriptions and takeaway is $1,800 a year.

Step 3: Pay yourself first

Set up an automatic transfer to savings, or to your offset account, on payday. Money you don't see is money you don't spend.

Step 4: Tackle expensive debt

Credit cards and personal loans often charge far more interest than a home loan. Paying them down frees up cash flow and can increase how much you can borrow later. Lenders also count your full credit card limit, so reducing limits you don't need can help too.

Step 5: Review your home loan

If you have a mortgage, a quick review is one of the most valuable things you can do:

• Is your rate still competitive compared with what new customers are offered?
• Are you using your offset account?
• Is your fixed rate ending soon?
• Could a small extra repayment each month cut years off your loan?

Step 6: Plan for the big things

If buying a home is on your list, find out what you'd need. First home buyers may be able to use the 5% Deposit Scheme, which has had no income caps since October 2025. In NSW, first home buyers pay no stamp duty on homes up to $800,000.

Step 7: Check in regularly

Put a reminder in your calendar every three months to check your progress. Celebrate wins, and adjust goals if life changes.

An example

Tom and Priya set three money goals: save $20,000, clear a $6,000 credit card, and review their home loan. They:

• Set up a $1,200 automatic transfer to their offset each fortnight
• Paid an extra $500 a month off the credit card and closed it once cleared
• Had their loan reviewed and moved to a sharper rate, saving about $180 a month

Frequently asked questions

How many financial goals should I set?

Two or three is plenty. Too many goals can be hard to stick to.

Should I save or pay off debt first?

Usually clear high-interest debt first, while keeping a small emergency fund.

How often should I review my home loan?

At least once a year, and whenever rates change.

Talk to Awesome Lending Solutions

If one of your goals is to buy a home, invest or get a better home loan rate, we'd love to help you make a plan. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Australian Housing Market Update: October 2026

This article first appeared on awesomelendingsolutions.com.au.

The Australian housing market has changed direction in 2026. After strong growth through 2025 and early 2026, home values have now fallen for six months in a row. At the same time, interest rates have risen four times this year. Here's a plain-English summary of where the market stands in October 2026, and what it could mean for you.

The headline numbers

According to Cotality's Home Value Index, released on 1 October 2026:

• National home values fell 1.1% in September, the sixth straight monthly fall.
• National values are now about 5.2% below their March 2026 peak.
• Over the past year, national values are roughly flat.
• Almost every capital city suburb (around 97%) recorded falls over the past three months.

City by city

Sydney

• Values fell 1.4% in September.
• Sydney values are about 8.6% below their February 2026 peak.
• Annual change: about -7.0%.

Sydney continues to lead the correction, with higher-priced homes falling the most.

Melbourne

• Down 0.7% in September, a milder fall than other large cities.
• Annual change: about -6.2%.

Brisbane

• Down 1.5% in September, the sharpest monthly fall among the capitals.

Perth and Darwin

• Perth (about +10.1%) and Darwin (about +11.9%) still show the strongest annual growth.
• Darwin was the only capital to rise in September.

Canberra

• Down a more modest 1.6% over the year.

What's driving the change?

1. Rising interest rates

The RBA raised the cash rate four times in 2026, to 4.60% on 29 September, its highest level since 2011. Higher rates reduce borrowing power and buyer demand. The RBA has said more rises are possible.

2. New tax rules for investors

New laws passed in June 2026 limit negative gearing for established residential properties bought after 7:30pm on 12 May 2026, and replace the 50% CGT discount from 1 July 2027. Some analysts expect this to reduce investor demand for established homes.

3. APRA's debt-to-income limit

Since February 2026, banks can only write 20% of new loans where debt is six or more times income. This limits highly leveraged lending.

4. Affordability

After years of strong growth, many buyers were already stretched.

What's supporting the market?

• Low housing supply – new construction remains constrained
• A relatively resilient jobs market
• First home buyer support – the 5% Deposit Scheme with no income caps, Help to Buy, and NSW stamp duty exemptions

These factors may help cushion against a severe crash, though some forecasters expect further falls into 2027.

What it means for you

First home buyers

Softer prices and less competition may create opportunities, especially with the 5% Deposit Scheme and NSW stamp duty exemption up to $800,000. But higher rates mean careful budgeting is essential. Buy a home you'd be happy to hold for the long term.

Home owners

Your equity may have fallen if you bought recently. If you're planning to refinance, check your property's likely value, as your LVR may be higher than you think. With four rate rises, a home loan review is worthwhile.

Upgraders

A falling market can work in your favour if the home you're buying has fallen more in dollar terms than the one you're selling. Be careful with bridging finance and conservative with your sale price expectations.

Investors

The new tax rules mean cash flow matters more. New builds keep negative gearing and are exempt from APRA's debt-to-income limit. Talk to your accountant before buying.

Our view

Markets move in cycles. Nobody can predict the bottom. The best decisions come from focusing on what you can control: your budget, your loan, your buffer and buying the right property for your needs.

Questions to ask yourself before acting

• How long do I plan to stay in this property?
• Can I comfortably afford repayments if rates rise again?
• Do I have a buffer for repairs and emergencies?
• Have I checked my borrowing power at today's rates?

Answering these honestly matters more than trying to time the market.

Frequently asked questions

Will prices keep falling?

Some forecasters expect further falls into 2027 if rates stay high. Others expect low supply to limit declines. No one knows for sure.

Is now a good time to buy?

It depends on your finances and goals. Softer markets can offer opportunities, but make sure you can afford the repayments if rates rise further.

How often will these updates be published?

We'll keep sharing updates as the market changes. Check back regularly or follow us on social media.

Should I wait for prices to fall further?

Trying to pick the bottom is hard. Focus on your own readiness and long-term plans instead.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.