The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The latest ANZ CoreLogic Housing Affordability Report for November has revealed a "triple whammy" effect on prospective home buyers in Australia.
Affordability has worsened for not only buyers but also mortgage holders and renters, and unfortunately, the situation is predicted to deteriorate further by 2024.
Rents on the Rise
One of the key challenges faced by prospective home buyers is the significant rise in rents. This surge in rental costs makes it increasingly difficult to save up enough money for a deposit on a property. In fact, according to CoreLogic, it currently takes the average household around 10 years to save up a 20% deposit on the median priced Australian home.
Home Values Pushing the Dream Further Away
The rising trend in home values is another obstacle preventing many Australians from achieving home ownership. As these values continue to soar, the prospect of owning a home becomes even more distant for the average buyer.
Mortgage Rates on the Rise
Finally, the ongoing increase in mortgage rates exacerbates the challenges faced by home buyers. Higher interest rates make it more difficult for buyers to secure a mortgage on affordable terms.
The gap between what the median buyer can afford and the actual median price is currently at its widest level in over 20 years:
For instance, while the median capital city home in Australia is valued at $741,000, the median household with a 20% deposit could realistically afford to pay only up to $479,000 to avoid mortgage stress.
According to Eliza Owen, CoreLogic’s Head of Australian Research:
"There's probably more challenges than ever for first home buyers trying to get into the market. The median dwelling value, for the median income, is not really serviceable with a 20% deposit at the moment. If you don’t own housing already, it’s very difficult for incomes to keep pace with the movement of values, particularly for houses."
Adelaide Timbrell, ANZ senior economist, further adds that the housing affordability situation is expected to worsen in the coming year as house prices and rents continue to rise:
"We’re not seeing any reason to think there's going to be a turnaround in housing affordability any time soon."
Unfortunately, the Australian Dream of owning a home is drifting further out of reach. The record immigration program implemented by the Albanese government is compounding the issue, leading to increased house prices, rents, and interest rates.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting such loans to 20% of new home lending portfolios. This measure is designed to address concerns over escalating property prices and the potential for financial instability. - read more
ANZ Bank has recently introduced more stringent criteria for mortgage lending to trusts and companies, aligning with similar moves by other major Australian lenders. Effective January 8, 2026, these changes reflect a broader industry response to regulatory concerns over high-risk lending practices. - read more
The Australian Securities and Investments Commission (ASIC) has issued a stern warning to the private lending sector, highlighting the need for improved industry practices to protect consumers and maintain financial stability. This move comes amid growing concerns over inconsistent reporting, opaque fee structures, and potential risks within the sector. - read more
BNK Banking Corporation Limited (BNK) has announced its foray into structured finance by backing a syndicated senior secured warehouse facility. This strategic move enables a burgeoning Australian non-bank lender to access funding through a facility secured by high-quality receivables. BNK's acquisition of senior notes in this warehouse aligns with its broader strategy to establish a foothold in asset-backed lending and private credit. - read more
The Australian Securities and Investments Commission (ASIC) has conducted a comprehensive review of the private lending sector, revealing significant concerns regarding inconsistent practices, unclear reporting, and potential risks to investors. This scrutiny comes in response to the rapid growth of private credit in Australia, which has expanded by 500% over the past decade, reaching approximately $200 billion in loans. - read more
Allied Credit, a leading independent financier in Australia, has announced the acquisition of a $1.5 billion car loan and novated leasing portfolio from Macquarie Group's Banking and Financial Services division. This strategic acquisition aligns with Allied Credit's vision to become a high-performance financier in the Australian auto finance industry. - read more
National Australia Bank (NAB) economists have revised their interest rate forecasts, now expecting the Reserve Bank of Australia (RBA) to implement additional rate hikes in both March and May. This adjustment suggests a potential peak cash rate of 4.35%, reflecting concerns over robust economic growth, a tight labour market, and persistent inflationary pressures. - read more
The Australian Securities Exchange (ASX) 200 experienced a significant decline, dropping 1.42% to 9,069 points. This downturn is attributed to a combination of investor profit-taking, escalating Middle East conflicts, and a hawkish stance from the Reserve Bank of Australia (RBA). - read more
The Australian Financial Complaints Authority (AFCA) has announced an indefinite extension to the deadline for lodging complaints related to collapsed superannuation funds. This decision aims to provide additional time for affected individuals to seek redress, acknowledging that many victims have yet to come forward. - read more
The Reserve Bank of Australia (RBA) is contemplating a potential increase in interest rates, prompted by a significant rise in oil prices and the associated inflationary pressures. Governor Michele Bullock has indicated that the possibility of a rate hike is 'live' for the upcoming meeting, as the central bank assesses the economic impact of recent geopolitical events. - read more
Financial health refers to the state of one's personal financial situation. It encompasses a variety of factors, such as income stability, expenses control, savings, investments, and debt management. - read more
Understanding financial health is paramount when venturing into the realm of loan acquisition. It's the backbone that supports not just your immediate monetary requirements but ensures longevity in your fiscal stability. At the heart of this understanding lies a critical aspect: the credit score. It's a numerical representation of your financial trustworthiness, influenced by past fiscal decisions and behaviors. - read more
Understanding the nuances of financial health is a crucial component in the journey of loan acquisition. It is the bedrock on which potential borrowers build their case for credibility and reliability. Among the myriad of factors influencing your fiscal stability, credit scores stand out as a beacon indicating your creditworthiness to lenders. A robust credit score simplifies the path to securing loans, garnering favorable interest rates, and negotiating better terms. - read more
When it comes to securing a loan, the terms you agree to can have a lasting impact on your financial wellness. It's crucial to strike a balance between finding a loan that fits your needs and maintaining a healthy credit score. This delicate equilibrium is where loan comparison tools come into play, serving as navigational aids in the vast sea of credit options. - read more
Embarking on the journey to secure a loan can feel like navigating a minefield with your credit score as the prize. It's no secret that your credit score is your financial fingerprint, impacting not just your loan prospects but also the terms you're offered. However, the act of loan hunting itself, if not done carefully, can take a toll on this crucial number. - read more
Your credit score is a crucial part of your financial health. Essentially, it’s a numerical representation of your creditworthiness, calculated based on your credit history. In Australia, credit scores range from 0 to 1200, with a higher score indicating better creditworthiness. - read more
Loan approval can often be a crucial milestone in achieving your financial goals. Whether you're looking to buy a home, pay for education, or consolidate debt, securing a loan can provide the financial boost you need to move forward. - read more
Financial stress is a common issue that affects a large portion of individuals, often due to unexpected expenses, unemployment, or a high cost of living. It can lead to both mental and emotional strain, influencing one's quality of life and decision-making abilities. Credit scores, a critical measurement of financial health, are used by lenders to evaluate the risk of lending money. - read more
Financial stress can feel like an unstoppable force, a cycle of worry that impacts not only our peace of mind but also our fiscal health. It represents the anxiety and pressure associated with the inability to meet financial obligations, be it due to unforeseen expenses, unemployment, or a plethora of other reasons. - read more
Managing debt effectively is crucial for young adults, especially as they start building their financial independence. Understanding how to manage debt properly can help you avoid financial pitfalls and set you up for a stable future. - read more
Need Help Finding a Loan?
Find out now if you qualify and compare
rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free and without obligation. We respect your
privacy.
Knowledgebase
Mortgage Broker: A person or company that acts as an intermediary between borrowers and lenders, but does not lend money directly.