A breakthrough year for borrowers

Every housing cycle has its own personality; some are loud and chaotic (hello pandemic). Others stretch on quietly, wearing down confidence. Then there are years like 2026 – where the shift isn’t explosive, but unmistakable. According to Nicole Ferguson, Loan Market, National Director, several long-awaited financial sector changes could have an outsized influence on residential decision-making come the new year.

“It’s not a single announcement that changes things,” she says. “It is the cumulative effect of technology modernising, regulation catching up, lenders competing harder for business, and households regaining confidence. When those forces align, opportunities tend to open.”

ONE HABIT COULD CHANGE EVERYTHING

If Ferguson could recommend one move for mortgage holders this summer, it’s surprisingly simple: “When you refix your mortgage, keep repayments exactly where they are today. It’s not glamorous, and it won’t make headlines, but it is one of the most powerful building levers available to ordinary households.”

There are two reasons why:

1. Around 64 per cent of borrowers will roll onto lower mortgage lending rates in the next year.

2. You’ve already proven you can afford the higher amount you’ve been paying.

By holding repayments steady, the difference goes straight toward reducing principal, not interest. That means faster equity growth, shorter loan terms, and a more robust financial position if lending conditions tighten again.

“Think of it as the summer reset”, Ferguson says, “A small tweak that sets up the whole year.”

THE BATTLE BETWEEN BANKS ISN’T ABOUT RATES

Yes, pricing matters. Cash incentives are enticing. But the most intense competition between lenders right now is happening in a different arena altogether: the experience, Ferguson says.

“After a tiring few years, borrowers are craving certainty. What they want is not a miracle rate – it’s a smooth process, consistent decisions, and someone in their corner who can navigate the system without losing days to emails and document requests.”

The surge in refinancing activity is telling. Yes, people want sharper rates, but a growing share are switching lenders because the experience elsewhere might be better: faster approvals, clearer communication, fewer hoops.

This will shape consumer behaviour in the year ahead. As lending rules influence decisions and mortgage rates settle off their lows, buyers who are organised and well-supported will move faster and with more confidence.

“In this kind of housing market, the difference between winning at auction and missing out can come down to preparation, and the quality of the support behind you.”