The cost of housing will remain the standout pressure point for Australian households in 2026 – and mortgage brokers are set to stay on the front line of dealing with that stress, according to Canstar’s latest Consumer Pulse Report.
Despite three cash rate cuts this year, the ninth annual survey of more than 2,000 Australians found the cost of housing (mortgages and rents) is still the nation’s number one financial concern heading into 2026.
Separate affordability data from PropTrack shows that, even with these rate cuts, housing affordability remains close to record lows, with median‑income households able to afford just 15% of homes sold nationally in FY25.
Canstar.com.au data insights director Sally Tindall (pictured) said the relief from rate cuts has not gone far enough for many borrowers.
“Three cuts to the cash rate brought some much-needed relief to mortgage holders, but the Canstar Consumer Pulse data confirms that for many, it simply hasn’t been enough,” Tindall said.
"Housing remains the nation’s top financial concern. Whether it’s mortgage repayments or rents, the meteoric rise to what is, for most people, their biggest financial expense has been difficult to shoulder."
The report found 21% of Australians name the cost of housing – including mortgages and rents – as their biggest financial worry for 2026.
Cost of housing has now been the most common financial concern for four years in a row, and its share as a top worry is more than double what it was five years ago.
PropTrack’s latest Housing Affordability Report similarly found that saving for a 20% deposit now takes the typical household around 5.8 years, underscoring the ongoing barrier to homeownership.
Owner‑occupier borrowers appear slightly better placed than last year: 66% feel equipped to handle current interest rates in 2026, up from 60%. Renters, however, are under acute pressure. Half (50%) saw their rent rise in 2025 by an average of $62 per week, up from $53 in 2024, prompting 42% to cut spending and 17% to search for cheaper accommodation.
A separate Cotality report shows the structural pressure behind these numbers, with mortgage serviceability near 45% of income and renters spending over 33% of income on housing.
Income expectations remain subdued. Fewer than one‑fifth of Australians (17%) are certain they’ll receive a pay rise in 2026, while nearly half (49%) don’t expect any increase at all.
Even so, 31% of respondents feel optimistic about their financial outlook for the year ahead, and many are responding by tightening up their finances rather than giving up on their goals.
Australians are “laser‑focused on saving”, with 68% regularly putting money aside – up from 62% last year and 51% in 2023. The average amount saved each month has jumped by $211 (38%) to $769.
For the second consecutive year, saving for a holiday is the top goal (15%), but buying a house (14%) has climbed into second place, underlining that homeownership aspirations remain strong despite affordability challenges.
Personal debt (excluding property loans) is slightly less widespread, with 33% of Australians holding such debt in 2025, down from 35% in 2024. However, for those in debt, balances are growing.
Average personal debt rose to $17,634 in 2025, up from $15,179 last year, as households continue to grapple with high cost‑of‑living pressures.
The Canstar report also highlights a gender split in debt types:
Encouragingly, 78% of Australians with personal debt say they are committed to paying it down.
Tindall urged borrowers to treat 2026 as a year of proactive action on debt.
“It’s positive to see fewer people in debt, however, of those that are, the total amount owing is moving in the wrong direction. If that’s you, make 2026 the year you knock down what you owe," she said. “While there’s no silver bullet, making a roadmap out of debt will help you see the end goal and give you the motivation to make the tough decisions needed to get there."
Property dynamics remain challenging for both existing owners and would‑be buyers.
More than one‑quarter (26%) of property owners are considering selling within the next two years. While downsizing and upgrading are the most common drivers, a worrying 19% of those thinking about selling say they can’t afford higher loan repayments – up from 16% last year.
On the demand side, nearly two‑fifths of Australians are concerned the revised Home Guarantee Scheme (allowing a 5% deposit for first‑home buyers) could worsen affordability. Some 27% fear it will push up prices, and 12% think it will intensify competition, while only 15% see it as genuinely helpful for first‑time buyers.
Tindall stressed the importance of taking practical steps to cut costs and free up cash flow – starting with the mortgage but not ending there.
"Taking action, such as switching to a cheaper loan, is an effective step that can ease financial strain and give Australians more control over their budgets," she said.
“The mortgage might be, for many, the biggest monthly expense, but households should not stop at just one bill. Write out a list of recurring expenses and make that your to-do list to compare and switch.
“Canstar’s Cost of Living Comparison tool shows that households on average-priced plans can save thousands just by switching a handful of bills."
Tindall said the beginning of the new year is an ideal moment for Australians to revisit their financial plans and set realistic targets.
"Heading into 2026 is the perfect time to write out your goals for the next year and beyond, and think about what steps you need to take," she said. "Success doesn’t mean you have to have knocked off your debt completely or bought your dream home by this time next year, but if you can finish 2026 having made progress towards your goals, it will be a year that can be chalked up as a win."
Canstar has outlined a month‑by‑month “12 fixes” action plan for 2026, ranging from setting goals and budgets in January, tackling high‑interest debt in February and reassessing mortgages in March, through to reviewing utilities and subscriptions, boosting savings, and finishing the year with a financial review.
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