Australia’s property market is heating up to unprecedented levels, with homebuyers flooding brokers for mortgage pre-approvals as competition intensifies nationwide.
New figures from Loan Market Group reveal a record-breaking jump in pre-approval activity, with some suburbs seeing growth of more than 500% year-on-year. The surge is being fuelled by a mix of RBA rate cuts, rising home values and government deposit incentives.
The Reserve Bank has cut the cash rate by 75 basis points so far in 2025 to 3.6%, and major banks have fully passed on the savings, adding to borrower capacity and market firepower.
Melbourne’s eastern suburb Ringwood led the nation with a staggering 500% rise in pre-approvals in Q3 2025 compared with the same period last year.
Brisbane’s Fortitude Valley followed closely, up 373%, while Surfers Paradise on the Gold Coast jumped 330%. Melbourne’s Box Hill saw a 267% lift, and Sydney’s Hurstville rounded out the top five with an increase of 220%.
The trend was consistent across the country: Adelaide’s Modbury (+160%), Darwin (+171%), and Hobart’s Park Grove (+71%) all recorded notable growth.
Loan Market CEO David McQueen (pictured left) said the combination of lower borrowing costs and surging buyer confidence has created an extraordinary environment.
“There’s a definite shift in sentiment and competition, with more people attending open homes and more properties selling under the hammer at auction,” McQueen said.
“Since July, Loan Market has recorded a surge in people reaching out to brokers, securing a pre-approval before starting their property hunt – they’re looking for that crucial edge in a competitive market.”
He said the recent rate cuts and the First Home Loan Deposit Scheme (5%) government support had “supercharged” demand across all markets.
“In some markets, the number of people with pre-approvals has more than doubled, year-on-year,” McQueen said. “Knowing exactly how much you can borrow and repay helps you pinpoint the suburbs within your price range and confidently decide if that extra bedroom or bathroom is within your budget.”
Loan Market’s data shows pre-approvals are rising across both premium and fringe locations, indicating that affordability constraints are pushing buyers into a wider range of areas.
“As our data has shown, pre-approvals are being secured from the inner city to the outer suburbs, underlining the rising interest across many markets,” McQueen said.
Sam White (pictured right), executive chairman at Loan Market Group, said the diversity of suburbs taking off surprised even seasoned market observers.
“I was surprised at some of the suburbs on the list,” White said. “Some are high value, while others are on the fringes or remote. In Victoria for example, there are inner city and also fringe suburbs, both experiencing growth. Each state seems to have a different pattern.”
For brokers, the latest data signals a sustained upswing in buyer activity – and a potential challenge managing turnaround times as lender pipelines fill.
With pre-approvals soaring across capital and regional markets, McQueen emphasised the importance of early engagement and ensuring clients remain within financial limits.
“Securing pre-approval early gives buyers the confidence to act decisively and responsibly in a fast-moving market,” he said.
Mortgage pre-approvals are surging across Australia, led by Melbourne, Brisbane, and the Gold Coast. With the RBA’s rate cuts and government deposit schemes igniting buyer competition, brokers are set to play a pivotal role in guiding clients through a high-stakes, high-demand property cycle.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
