Are lawyers still in a favourable position to buy property?

The news followed last week’s announcement from the Australian Bureau of Statistics (ABS) that the annual consumer price index (CPI) climbed to its highest level in over two years in March, with trimmed mean inflation remaining above the Reserve Bank’s target range. Headline inflation rose 4.6 per cent over the year to March, up from 3.7 per cent in February, data from the ABS showed.

With these developments, together with the conflict between the United States, Israel, and Iran resulting in a shutdown of the Strait of Hormuz and subsequent spikes in petrol prices (which could result in legal workplaces having to institute work-from-home arrangements once more), lawyers across the country may be uncertain about their standing when it comes to purchasing a first home or expanding their property portfolios.

Distinctive Finance founders and directors Christian Goodall and Mitchell Lobb told Lawyers Weekly that, in the current environment, which is marked by persistent inflation, rising interest rates, and ongoing global uncertainty, it is understandable that many lawyers are approaching financial decisions with greater caution.

In particular, this week’s rate rise, Legal Home Loans (LHL) director of sales Cullen Haynes said, adds another layer of pressure for borrowers already navigating high living costs and economic uncertainty: “Every 25-basis point (0.25 per cent) increase adds approximately $161 per month to repayments on a $1 million mortgage and can reduce borrowing capacity by around $30,000 to $40,000.”

This said, from the perspective of Goodall and Lobb, the fundamentals haven’t changed as much as sentiment has.

“Lawyers typically remain highly attractive borrowers given their stable incomes and long-term earning potential. The challenge we’re seeing is less about access to finance, and more about confidence and clarity,” they said.

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Goodall and Lobb appeared on The Lawyers Weekly Show earlier this year to discuss what continued rate rises mean for legal practitioners looking to purchase a property or expand their investment portfolios and how best they can respond to the market at this juncture.

At times like this, the pair continued, “the most valuable step is not necessarily acting immediately, but understanding your position”.

“That means getting a clear view of borrowing capacity under current lending conditions, assessing cash flow with updated rate assumptions, and ensuring appropriate buffers are in place,” they said.

For those currently in the market, Haynes said that LHL is seeing a strong trend towards securing pre-approvals early. This effectively locks in current servicing positions for up to 90 days, he noted, providing a buffer before lenders formally pass on rate increases, which can take a couple of weeks to flow through.

Clearance rates have also eased from 72.7 per cent to 66.3 per cent, he added. For pre-approved buyers, “this may present a window of opportunity to purchase with less competition”.

For existing borrowers, Haynes went on, the current environment is a strong reminder to review your loan.

“If you haven’t done so in the past 12 months, there’s a chance you may no longer be on a competitive rate or structure. A review can help reduce repayments and potentially unlock equity, whether through refinancing or a restructure with your current lender. With property values showing signs of softening, timing can matter, as accessible equity is ultimately determined by your valuation at the time of application,” he said.

LHL is also seeing increased conversations around fixed rates, Haynes said, continuing a discussion he had with this brand in late 2025.

“While fixed rates are no longer at the historic lows seen in recent years, they can still provide certainty in a rising rate environment. Lawyers should seek advice from their financial adviser to determine what set-up is appropriate for their individual circumstances,” he said.

Finally, he pointed out that many are taking advantage of home loan benefits available to lawyers: “These can include up to 90 per cent lending with LMI waivers across owner-occupied, investment, and construction loans for those with a practising certificate.”

Ultimately, what Goodall and Lobb are advising clients is simple: replace speculation with certainty.

“Rather than making decisions based on headlines or market noise, engage early to understand what’s actually achievable in today’s environment,” they said.

“In uncertain markets, clarity creates confidence, and that’s what allows clients to move forward with conviction.”