As we commence a new year, we asked the lenders what they expect to see happen in the residential mortgage market in 2026. Here’s what they had to say...
Investor, self-employed, and business lending opportunities: NAB
Adam Brown, executive, broker distribution at National Australia Bank (NAB), said the year 2025 finished off with “steady market activity”, and he expected this to continue in 2026, suggesting there is “significant growth potential across several key segments”.
The NAB executive elaborated: “Property investors, self-employed and business customers represent substantial opportunities for brokers who can navigate their increasingly complex needs.
“At the same time, recent policy changes will continue to strengthen the vital and evolving first home buyer segment of the market.”
Brown added that technology would help support the efficiencies of mortgage brokers in writing more.
“Advances in technology and AI will further transform the lending process and reshape how brokers operate – driving greater efficiency and freeing up time to focus on what matters most: building trusted, long-term customer relationships,” he said.
“At NAB, we’re focused on what’s next – delivering simpler, more digital banking experiences that empower brokers and help deliver better customer outcomes.”
Rising rates will push Australians to flexible lending solutions: Pepper
Barry Saoud, CEO of residential and commercial lending at Pepper Money, said that he believed lending in 2026 would continue to be shaped by broker-led distribution and a growing shift toward non-bank lenders, particularly if the cash rate increases this year (with some forecasts suggesting that rate hikes may come as early as February).
“With brokers now settling more than 76 per cent of new home loans, their role as trusted advisers matters more than ever – especially as borrower profiles become more complex,” Saoud said.
“Rising interest rates, driven by persistent inflation, will challenge affordability and push more Australians to look for flexible lending solutions. As traditional banks tighten their credit criteria, non-bank lenders are stepping in as preferred partners, offering faster approvals, flexible options and common-sense credit policies. This shift is being driven by borrowers who fall outside the banks’ appetite.”
Saoud added that he thought three key trends would fuel non-bank growth in 2026:
1. Investor activity - Particularly as more borrowers use company or trust structures (scenarios non-banks are ready to support, while mainstream banks pull back from this space).
2. Construction lending - Despite a dip in approvals late in 2025, Saoud noted that project proposal values are up 60 per cent, signalling a strong pipeline. “Non-banks are responding with alternative documentation for self-employed clients, high LVR options and near-prime solutions for those with past credit issues,” he said.
3. Financially stressed households need relief - With holiday debt hitting $2.7 billion and default risk up 12 per cent since 2022, more Australians are turning to debt consolidation and extended loan terms. Saoud said that non-banks are meeting these needs with options that allow unlimited consolidation, tax debt inclusion, and cash-out flexibility.
“As banks recalibrate under pressure – whether from debt-to-income limits or a shifting rate environment – non-bank lenders will deliver helpful loan options to everyday Australians and small businesses. We’re not just filling gaps. We’re redefining the lending landscape,” he concluded.
Alt-doc, low-doc, and custom options will remain front and centre: Liberty
Liberty also flagged that 2026 will see borrowers seeking more flexible lending solutions.
Speaking to The Adviser, chief distribution officer at Liberty Financial, David Smith, said that the interest rate trajectory will play a leading role in how lending will shape up.
“We see big opportunities in specialist lending as more Australians seek flexible solutions outside the banks. Non-bank lenders will play an even bigger role as demand for choice grows,” he said.
“Alt-doc, low-doc and custom options will remain front and centre at Liberty, and we’re excited to grow our SMSF offering to help brokers support clients planning for the future.
“If rates ease, we anticipate a surge in new lending activity.”
Smith also believes that technology will continue to reshape the lending experience.
“With AI streamlining processes, brokers can deliver faster and more predictable outcomes, which customers value most. Processes that used to take hours will take seconds, giving brokers more time to focus on relationships and advice,” he said.
“Brokers who lead proactive client conversations will be well placed to capture these opportunities. In 2026, expect a market defined by flexibility, tech-driven efficiency, and partnerships that empower brokers to meet rising expectations.”
Opportunities aplenty for brokers: Bluestone
Tony MacRae, chief commercial officer at Bluestone, said that housing demand will remain “robust”, even as prices trend upward.
“Government initiatives and buyer incentives are fuelling this momentum, creating a steady stream of opportunities for brokers to support clients navigating a dynamic property market,” he said.
“Looking ahead, the broader economic outlook for 2026 is positive, with continued growth expected across key sectors. For brokers, this means a strong environment to expand offerings, deepen client relationships, and position themselves as trusted advisers in both traditional and alternative lending spaces.”
MacRae added that more brokers are also diversifying into commercial and non-standard lending solutions, which is “opening doors to new client segments and strengthening broker value in an increasingly competitive landscape”.
“We’ve adjusted our product mix to help brokers win these clients; from expats to commercial investors and those looking to build a property,” he said.
Private lending and bridging finance to take centre stage: Assetline
According to Royden D’vaz, general manager – distribution and partnerships at Assetline, private lending will continue to grow in popularity this year.
He told The Adviser that while AI and digital platforms will dominate headlines as residential borrowers seek speed, flexibility, and tech-enabled service, he added that “the real story is borrower behaviour: clients want solutions that mainstream lenders can’t always deliver”.
“Private lending will surge as brokers seek tailored structures for complex scenarios, and bridging finance will move from niche to mainstream as awareness grows,” D’Vaz said.
“With interest rates stabilising, demand for short-term funding, particularly for property purchases, will accelerate. Brokers who understand these products will be well-positioned to guide clients through affordability challenges and lifestyle-driven decisions.”
What do you think the lending trends will be in 2026? Let us know in the comments below!
[Related: 2 majors say rates will rise in February]
