Housing Resale Profits Hit 20-Year High — What Australia's Property Boom Means for Borrowers

Australian property owners who sold in early 2026 are pocketing record gains. According to CoreLogic's latest analysis, housing resale profits have hit their highest level in 20 years, with the median profit on resales reaching a new record. This surge in equity has direct implications for borrowers using property as collateral.

Record Equity: What the Numbers Mean

CoreLogic's March 2026 data shows that the vast majority of Australian homeowners who sold generated a profit, with median gains exceeding records set during the 2021 property boom. The figures reflect underlying property value resilience despite back-to-back RBA rate hikes pushing borrowing costs higher through 2025–2026.

For borrowers, this equity accumulation is significant:

• Refinancing power: Homeowners with strong equity positions can access non-bank refinancing products at competitive rates
• Leveraging equity for investment: Built-up equity can serve as a deposit for commercial or investment property purchases
• Improved serviceability: Higher asset values can support loan approvals for self-employed borrowers through alt doc products

Property Equity and Non-Bank Lending

Non-bank lenders like MPFG Capital assess property value as a critical component of loan security. With median property gains at record levels, borrowers who have held property for several years may find their loan-to-value ratios (LVR) have improved significantly — opening access to better lending terms.

This is particularly relevant for:

• Self-employed borrowers looking to refinance or release equity
• Property investors using existing holdings to fund new acquisitions
• Bridging finance scenarios where an existing property serves as security

What Buyers and Sellers Need to Know

While strong resale profits signal market health, prospective buyers face higher entry-level prices. The combination of high property values and elevated interest rates — with the RBA cash rate at 4.10% as of March 2026 — continues to compress borrowing capacity for those relying on traditional bank financing.

Non-bank and alternative lenders play an increasingly important role in this environment, offering flexible assessment methods — including alt doc loans for self-employed applicants — that can accommodate borrowers whose income structures don't fit standard bank criteria.

FAQ

Q: Does high property equity help me get a non-bank loan?

A: Yes. Strong equity in existing property can be used as security for new loans or to refinance existing ones at better rates. Non-bank lenders generally assess the full picture of your assets and income.

Q: Can I use my property's equity as a deposit for a commercial purchase?

A: In many cases, yes. Speak with a specialist lender about using existing equity to fund a commercial property deposit.

Q: How does CoreLogic measure resale profits?

A: CoreLogic tracks the difference between the purchase price and resale price for properties that transact. The median profit is the midpoint of all profitable resales.

Disclaimer: This article is for general information purposes only and does not constitute financial advice. Past property performance does not guarantee future results. Please consult a licensed finance professional before making any lending or investment decisions.