Australia’s property market has reached a significant milestone, according to Domain: Half of the nation’s capital cities now have a median house price exceeding $1 million.

While this is a remarkable reflection of long-term growth, it also presents serious challenges, especially for first home buyers and those looking to expand their property portfolios.

As house prices climb, qualifying for the loan you need becomes harder.

For many Australians, the dream of home ownership can feel increasingly out of reach.

But even in today’s market, there are opportunities. Provided you know how to navigate the lending landscape.

And that’s where working with an experienced mortgage broker can make all the difference.

Why lender policies matter more than ever

Not all lenders assess borrowers the same way.

Small differences in how living expenses, deposit savings, and rental income are treated can have a major impact on whether you qualify for a loan and how much you can borrow.

A good mortgage broker takes the time to understand your individual circumstances and match you to lenders whose policies align best with your situation. They open doors that many borrowers might not realise exist.

Here are three real-world examples:

1. Living with family? Your boarding costs matter

A couple living with family and paying minimal board were struggling to qualify for a mortgage. Many lenders assumed a much higher level of living expenses, including board, which reduced their borrowing capacity.

But by identifying a lender that accepted lower board payments, they were able to secure the loan they needed to move into a new home.

2. Small deposit? It may not be a dealbreaker

A single-parent first home buyer had saved just 2% of the property’s purchase price and thought they were out of options.

However, by using a lender participating in Housing Australia’s Family Home Guarantee scheme, they were able to qualify for a loan with only a 2% deposit and avoid paying Lenders Mortgage Insurance (LMI).

3. Expanding property portfolio? Rental income assessment makes a difference

Clients seeking to purchase their third investment property were facing tough servicing challenges. Many lenders applied conservative rental income assessments, making it difficult to qualify.

But by working with a lender that assessed existing rental income more favourably, they were able to move forward with their next investment and keep their property investment aspirations alive.

Turning Challenges Into Opportunities

Australia’s record-high property prices may seem daunting, but with the right insights and lending approach it’s possible to move forward.

In today’s property market, expert guidance can make all the difference.

If you’d like to better understand your borrowing options, let’s connect