If you’ve been following the headlines lately, you’d be forgiven for thinking borrowers have been under constant pressure. Rates have moved, cost of living has been a talking point, and there’s been no shortage of commentary around how households are managing it all.
But every now and then, it’s worth stepping away from the noise and looking at what the actual data is telling us.
Because when you do, the picture is a little more balanced than the headlines suggest.
The Reserve Bank recently released its latest Financial Stability Review, and one of the more interesting takeaways was how well borrowers have actually held up. Rather than falling behind, many have quietly adjusted — building buffers, managing repayments, and taking a more measured approach to their finances.
It’s not the kind of story that grabs attention, but it’s an important one.
And for anyone working closely with clients — whether they’re looking to buy, invest or build — it changes the conversation.
One of the more telling insights from the RBA is just how resilient borrowers have been throughout this cycle.
Less than 1% of owner-occupier loans are currently in negative equity, and only a very small portion — around 0.01% — are both in arrears and in negative equity at the same time. In practical terms, that means the vast majority of borrowers still have a buffer between what they owe and what their property is worth, while also keeping on top of repayments.
A big part of that comes down to behaviour.
Over the past few years, many borrowers have built up savings in offset and redraw accounts, giving them flexibility as rates have moved. Instead of stretching to the absolute limit, there’s been a noticeable shift towards managing cash flow more carefully and maintaining a financial buffer.
From a lending perspective, that’s a strong position to be in.
 |  |  |  |
| Stronger Buffer More borrowers holding savings in offset/redraw accounts | Low Arrears Levels Fewer borrowers falling behind than expected | Equity Still Intact Very small portion of loans in negative equity | More Considered Decisions Less “maxing out,” more focus on sustainability |
For referrers and clients alike, this creates a different kind of environment.
When borrowers are in a stronger financial position, decisions tend to be clearer, timelines more flexible, and conversations more considered. It becomes less about reacting to the market and more about planning properly — whether that’s purchasing, investing, or moving forward with a build.
It also reinforces an important point: while conditions have changed, they haven’t necessarily weakened — they’ve just shifted.
And in many cases, that shift has led to more disciplined, more prepared borrowers.
For clients who are in that position, it’s often a good time to step forward with confidence — knowing the fundamentals behind them are stronger than they might seem at first glance.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
