The RBA Just Made Your Next Property Decision a Lot Harder

The RBA raised the cash rate to 4.10% (up 0.25%) in March 2026. This second rise reflects renewed inflation pressure. Inflation, which had eased earlier, picked up again in late 2025. The RBA noted overseas shocks, especially conflict in the Middle East, have driven fuel prices sharply higher, adding to inflation. In fact, the Board warned inflation is likely to stay above the 2–3% target range for some time.

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Impact on Borrowing

Higher official rates mean higher mortgage costs. With the cash rate at 4.1%, many buyers will see lower borrowing power and higher repayments. First-home buyers in particular may need a much larger deposit. On the plus side, banks are still lending: the RBA says credit is still readily available. In other words, loans are there, but budgets are tighter. Now more than ever it pays to get pre-approved and know exactly what you can afford.

Housing Market Outlook

Australian home prices grew strongly through 2025, buoyed by tight supply and strong demand. However, price growth is easing in early 2026. In practice, higher rates are slowing some buyer demand. Properties may sit on the market a little longer than they have been. That doesn't point to a price crash; more a settling of growth rather than a sharp drop. Investors are likely to shift their focus from chasing capital gains to building steady rental yields. And for first-time buyers, softer conditions can actually open the door; less competition and more room to negotiate.

Long-Term Perspective

Many fundamentals remain solid despite rate hikes. Australia’s population is growing, and housing supply is tight in key suburbs. A shortage of good homes continues to support values over the medium term. Smart buyers keep their eyes on what drives long-term value; local jobs, schools, transport, and lifestyle. When momentum slows, knowing which suburbs still stack up is what separates good purchases from costly ones. That's where data and local knowledge make the difference.

How We Help

Rising rates don't have to work against you. At Prowealth Properties, our buyer's agents help you make the conditions work in your favour. We'll assess your borrowing power, tighten up your budget and shortlist, and negotiate hard on your behalf. With over 15 years of experience, our team has found great deals across every kind of market. We also watch for any government incentives that could help buyers today. Careful planning and expert advice can make this market work in your favour.

Ready to make your move? Call Prowealth Properties on +61 433 853 248 or book a free consultation to talk through your goals. Our buyer's agents will walk you through every step; from sizing up your finance options to sealing the deal; so you can buy with confidence, even as rates rise.

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