Australian Homeowners Sit on Record Equity Even as the Market Cools — What It Means for Refinancing and Bridging

Australian homeowners are sitting on record levels of equity even as property market momentum cools, according to CoreLogic. National values broadly flatlined through May 2026, yet years of accumulated growth mean many owners hold substantial untapped equity — a quieter but important story beneath the soft headlines.

Two trends pulling in opposite directions

The market is sending mixed signals. On one hand, price growth has stalled and headwinds are building. On the other, long-term owners have rarely held more equity. This combination changes the practical options available to households and investors:

• Flat values mean less reliance on near-term capital growth and more focus on cash flow and structure.
• High equity means existing owners may have room to refinance, access funds, or move on a new purchase without waiting for the perfect market.

Where equity becomes a tool

The MPFG view

A cooling market is not the same as a closed one. For homeowners with strong equity, the current environment can actually create room to act — particularly where timing is the obstacle rather than capacity.

Bridging finance is a clear example. Many buyers find the home they want before their existing property sells; a bridging facility can cover that window so they don't miss out. As a non-bank lender, MPFG Capital assesses these situations on their merits, including for self-employed and Chinese-community clients who may not fit a bank's standard profile but hold genuine equity and a clear exit strategy.

Equity release through refinancing can also fund a deposit, a renovation, or business expansion — and for borrowers juggling higher-rate debts, restructuring against property security may ease monthly pressure.

The key is a sound plan. Drawing on equity adds borrowing, so it should be matched to a clear purpose and a realistic repayment or exit path. In a flat market, the owners who do best are often those who understand the resources they already hold — and structure them well.

This article is general information only and does not constitute financial or credit advice. Borrowing against your property carries risk. Consider your own circumstances and seek professional advice. Lending criteria, terms and conditions apply.