Market Update 30 October 2025

More Australians Building As Rates Fall

If you’ve been waiting for better conditions to build, they may finally be here.

Buyer confidence is lifting strongly after recent rate cuts, with more Australians choosing to build new homes rather than buy established ones.

The Housing Industry Association reported a 25.9% jump in new home sales in September – the biggest monthly increase in four years – and a 4.0% quarterly rise, the strongest since 2022.

Lower borrowing costs, strong population growth and the removal of lenders mortgage insurance (LMI) for eligible first home buyers are all helping drive demand.

Building can offer cost and design flexibility, but it also brings unique challenges — like progress payments, shifting timelines and builder variations that can affect your cash flow.

Mortgage Stress Easing, But Don’t Overspend

Households are finally catching a break.

The share of borrowers at risk of mortgage stress has fallen to its lowest level since February 2023, according to Roy Morgan, thanks to lower interest rates and steady employment.

But even as pressure eases, it’s not the time to splurge – especially with Christmas approaching.

The Reserve Bank of Australia says Australians made a record 305.4 million personal credit card transactions in August, up 3.9% on the year before.

It’s always important to live within your means, but two main reasons to go easy on credit this Christmas

• Avoid a debt hangover. Interest adds up fast, and repayments can eat into your savings well into the new year.
• Protect your borrowing power. Lenders assess your total credit limits and balances – big holiday spending can hurt your chances of loan approval or refinancing.

When conditions change, it’s a good time to evaluate your current situation. Planning to buy or refinance soon?

As Banks Retreat, Brokers Take the Lead

You may have noticed not as many banks have retail options in your neighbourhood these days. However, fewer branches doesn’t have to mean fewer options.

Canstar reports that the number of bank branches has fallen 5% in the past year and 33% over five years as banks shift services online. That means fewer face-to-face options and longer wait times for support.

But at the same time, Australians are choosing brokers in record numbers.

New data from Cotality, commissioned by the Mortgage & Finance Association of Australia, shows brokers now write 77.6% of new home loans, up from 67.2% just two years ago.

Why more borrowers are turning to brokers

• More choice. Brokers compare dozens of lenders, not just one.
• Personal support. They manage your application from start to finish.
• Your interests first. Brokers are legally bound by the Best Interests Duty – banks aren’t.

As banking moves online, having a broker means having real help when you need it.

PayDay Super: How It Benefits You

Your super will soon grow faster – and arrive more often.

From 1 July 2026, employers will start paying super at the same time as wages under the new Payday Super law.

The change means your super hits your fund with every pay cycle, so it can start compounding sooner. It should also make it easier to track payments and spot missed contributions.

Treasurer Jim Chalmers said the reform will “help ensure more Australians get the secure retirement they need and deserve.”

The Association of Superannuation Funds of Australia called it “a simple but powerful reform” to boost savings.

Before the new rules start

• Check your super fund details. Ensure your account and tax file number are current.
• Review your contributions. See if you’re on track for your long-term goals.
• Monitor payments. Log in regularly to confirm your employer contributions arrive on time.

Super may not be top of mind day-to-day, but small steps now can make a big difference later.