ABS data for the year to October 2025 shows trimmed-mean inflation at 3.3% and headline CPI at 3.8%, both above the RBA’s 2–3% target range. Notably, housing costs jumped 5.9%, led by huge electricity price rises, while electricity bills soared 37.1% and rents rose 4.2%. This means everyday living and housing costs are still climbing.

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Why are Rate Cuts on Hold?

In fact, RBA minutes warned of “limited scope for rate cuts” next year. With inflation still above target, the cash rate is expected to stay on hold. That means borrowing costs remain high, so it’s important to check your borrowing power now. High inflation also means banks keep lending terms strict, which can limit how much you can borrow.

High Rents and Inflation Keep Demand Strong

Rents are rising fast (up 4.2% in a year), boosting rental yields and attracting investors. The government’s 5% home-deposit scheme has also pulled more first-home buyers into the market. In short, buyer demand is high, which can keep home prices on the rise (housing costs are up 5.9% year-on-year).

Loan approvals are slower – get ready. Lenders are busy. Broker surveys show many loan applications taking longer, and some banks have paused new pre-approvals. This means you need a strong pre-approval early.

What does this mean for you?

As buyer’s agents, we can help speed things up and make sure your loan is set up the right way.

• Rates staying flat: With inflation still above 3%, the RBA is unlikely to cut rates yet. So it’s best to budget based on current rates, or even slightly higher, when planning your purchase.
  

• Prices under pressure: Inflation is pushing up housing costs (+5.9%) and rents (+4.2%). These trends can keep property values rising. Buying sooner may save you thousands.
  

• Borrowing power: High inflation and strict lender rules mean you might not borrow as much as in a low-inflation environment. Get pre-approved now to know your true budget.
  

• Lender delays: Loan processing is slower due to high demand. Work with an expert who knows which lenders move fastest and how to avoid hold-ups.
  
  

In short, today’s inflation figures signal a hot market where buyers and investors compete fiercely. If you’re ready to buy, act now before prices climb even higher. Our buyer’s agents at Prowealth Properties can guide you through these trends. We’ll work out your borrowing power and help you find the best loan for your needs.

Ready to take advantage? Then, don’t think much and directly call us on +61 433 853 248 and feel free to book a consultation, which is free of cost, to discuss your goals. Our team will explain how much you can borrow and help find the best loan for your situation.