Australia's market is auction-driven, transparent and chronically supply-constrained in Sydney and Melbourne. Rates in late 2026 run about 6.34–6.54% after the RBA lifted the cash rate to 4.60% in September, and variable-rate loans (usually penalty-free to overpay) dominate.
Foreign buyers need FIRB (Foreign Investment Review Board) approval, are generally limited to new builds, and pay state surcharges — factor both into any investment case.
Market overview
Stamp duty is state-based and significant (4–6% typical), with foreign-buyer surcharges of up to 8% in some states. Buying at auction is unconditional — arrange finance pre-approval and building/pest inspection before bidding. Rental yields average ~4.4% gross with very low vacancy in major metros.
Popular locations:
Mortgage rates in Australia (October 2026)
| Bank | Rate | Max LTV | Website |
|---|
Calculate your monthly payment →
True cost of buying & owning
Get your exact numbers with the Hidden Buying Costs and Annual Ownership Costs calculators.