With more choice available in many areas and less urgency than we’ve seen in recent years, buyers are taking the time to explore their options, compare properties and make more informed decisions before making a move.
If purchasing a property is on your radar this year, getting pre-approved on your finance could help to put you in a strong position when the right opportunity comes along. Whether you’re making an offer or bidding at auction, having a pre-approval can help you feel ready to move forward with confidence.
In September, the Reserve Bank of Australia (RBA) raised the cash rate to a 15-year high with the fourth increase of the year.
The official cash rate is now sitting at 4.6%, its highest level since 2011.
“Since the previous meeting, some of the upside risks to inflation are materialising,” the RBA said in a statement, following the decision.
“There have been further disruptions to global oil supply and recent data suggest that growth and inflation in Australia have been higher than expected.
“The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed.”
Many lenders were quick to update this variable home loan rates following the 0.25% increase.
For borrowers with a $700,000 loan on an average variable rate, the latest increase is estimated to add around $107 to monthly repayments. As a result, many households are taking the opportunity to reassess their budgets, explore refinancing options and ensure their home loan remains competitive.
Recent research from Roy Morgan found that 32.3% of mortgage holders were at risk of mortgage stress in the three months to August 2026, highlighting the importance of understanding how changes in interest rates could affect individual circumstances.
Meanwhile, research suggests many Australian households are feeling less confident about the economic outlook, going down to about 20% following the latest interest rate increase.
Periods like these can be a valuable opportunity to review your home loan and ensure it still aligns with your needs and goals. Whether you’re looking to reduce your repayments, access different loan features or simply better understand your options, a home loan health check can provide greater clarity.
If you’d like to explore what’s available, we’re here to help.
The next cash rate decision will be announced on 3 November.
At this stage, economists are divided as to whether the RBA will raise the cash rate again, or leave it on hold for the remainder of 2026. Although, many unfortunately believe that rate relief could be more than a year away.
Housing values continued to soften in September, with national home values declining 1.1%, according to Cotality.
The largest falls were recorded in Brisbane (-1.5%) and Sydney (-1.4%), while Melbourne experienced a more modest decline of 0.7%. Darwin was the only capital city to record growth during the month, with values rising 0.4%.
Cotality research director Tim Lawless expects housing values to continue falling into 2027 because of higher rates.
While higher interest rates and ongoing cost-of-living pressures have contributed to softer demand, the changing market is also creating new opportunities for buyers. More properties are taking longer to sell, giving buyers additional time to compare options, complete their due diligence and negotiate on price.
Stock levels are also increasing across many markets. Although fewer new listings are coming to market than a year ago, the total number of properties available for sale remains significantly higher, providing buyers with greater choice.
Regional markets continue to show resilience, with values up 5.6% over the past year compared to a 1.8% annual decline across the combined capital cities.
| All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
|---|---|---|---|---|
| VIC | 695 | 49% | 1060 | ▼ – 0.7% |
| NSW | 849 | 37% | 1073 | ▼ – 1.4% |
| ACT | 70 | 41% | 82 | ▼ – 1.1% |
| QLD | 292 | 21% | 725 | ▼ – 1.5% |
| WA | 16 | 31% | 404 | ▼ – 1.2% |
| NT | 6 | 67% | 30 | ▲ 0.4% |
| TAS | 2 | 50% | 131 | ▼ – 0.5% |
| SA | 151 | 38% | 209 | ▼ – 1.3% |
With listings accumulating and prices dropping, there could be plenty of opportunities for buyers looking to make the most of the changing property landscape. To chat through your finance options, get in touch today and we’ll find you a competitive home loan that works for you.