If Australia’s inflation pulse has been sending mixed signals, the property market is doing the exact opposite. Since July, demand for mortgage pre-approvals has exploded, reaching levels brokers say they’ve never seen before. It’s not just a rebound in buyer confidence, it’s a wave, and it’s sweeping across the country.
New figures from Loan Market Group show buyers rushing to secure borrowing power before stepping into open homes, with some suburbs recording year-on-year increases of more than 500%. In an era where interest rates have finally begun to ease, government incentives are flowing, and property prices continue to rise, the pre-approval surge is quickly becoming the defining story of Australia’s housing market heading into 2026.
Pre-Approvals Hit Big
Loan Market’s data paints a picture that’s hard to ignore - Mortgage pre-approval activity has surged at levels unmatched in recent memory.
Melbourne’s eastern pocket of Ringwood led the nation with an astonishing 500% jump in pre-approvals in Q3 compared with the same time last year. Brisbane’s Fortitude Valley followed at 373%, and the Gold Coast’s Surfers Paradise climbed 330%. Even traditionally steadier markets, like Melbourne’s Box Hill (+267%) and Sydney’s Hurstville (+220%), saw numbers well above the normal seasonal variation.
And this wasn’t confined to the east-coast capitals. Demand is rising everywhere - inner city, coastal, outer fringe, regional.
- Darwin recorded +171%
- Adelaide’s Modbury hit +160%
- Hobart’s Park Grove rose +71%
The Trifecta
Rate cuts, incentives and rising prices. The trifecta pushing buyers off the sidelines. And it’s not hard to see what’s fuelling this rush.
The RBA has cut the cash rate by 75 basis points so far in 2025, landing at 3.60%, and lenders have passed on the savings almost immediately. Borrowers suddenly have more capacity. Competition increases. Fear-of-missing-out creeps in.
Combine this with the First Home Loan Deposit Scheme (5%), a multi-month upward run in property prices and renewed confidence that rates have stabilised and you get a market that’s heating up fast.
Loan Market CEO David McQueen says the shift in sentiment is unmistakable. Open homes are busier. Auctions are more crowded. Buyers are doing what buyers do in a tightening market - they’re getting organised early.
“Pre-approvals have more than doubled in some markets,” McQueen said. “People want that edge. Knowing your borrowing limit before you start shopping has become essential.”
The Demand Spreads Outwards
One of the more surprising elements in Loan Market’s data is not just the scale of the surge, it’s the spread. It’s one thing for inner-city hotspots to take off, which can be expected, but this time, the upswing is equally strong in fringe and outer-metro regions.
Sam White, executive chairman at Loan Market Group, said even seasoned analysts didn’t expect the breadth of this surge.
“In Victoria, you’ve got inner-city markets and fringe suburbs both recording huge growth,” White said. “Each state shows a different pattern, but the common thread is rising demand everywhere.”
This broadening trend reveals a deeper dynamic: affordability pressure. As inner-ring prices climb, buyers shift outward. And as they shift, competition follows.
What It Means For Analysts and Brokers
For brokers and analysts alike, this is both an opportunity and a challenge.
A nationwide spike in pre-approvals means lender turnaround times could stretch, client urgency rises, and maintaining financial discipline becomes even more important.
McQueen emphasised early engagement as critical: “Securing pre-approval gives buyers the confidence to act decisively and responsibly in a fast-moving market.” Buyers are moving quickly, so professionals need to be ready to move faster.
Why Does This All Matter?
This pre-approval boom tells us something important about the current housing cycle:
- Buyers are back, in numbers not seen for years.
- Rate cuts have reignited demand faster than supply can respond.
- Government schemes are amplifying entry-level activity.
- Price growth is pushing more Australians to act now, before affordability slips further.
- And the heat is rising across all suburbs, not just the prestige postcodes.
If the RBA holds steady and confidence remains intact, Australia may be heading into one of its most competitive market stretches since the pandemic-era frenzy. Only this time, fuelled not by lockdown dynamics but by policy, pricing pressure, and a tidal wave of buyer mobilisation.
My Thoughts
Mortgage pre-approvals are skyrocketing across Australia, with some suburbs reporting increases of up to 500%. The surge has been building since July and is now entrenched across capitals and regional centres alike. With rate cuts, incentives and rising prices all pulling buyers back into the market, brokers and analysts alike are set to play a critical role in guiding Australians through what is shaping up to be a high-demand, high-stakes property cycle.
