Rates are up: what property buyers should do next

The Reserve Bank has lifted the cash rate by 0.25 percentage points to 4.60%. Edgar says buyers should respond by focusing on borrowing capacity, repayment comfort and the opportunities that may emerge in a slower market.

News reporting has described the new cash rate as a 15-year high. For buyers, that means the amount a lender is prepared to advance may change, even if the advertised price of a property has not.

Start with your comfortable repayment

Edgar recommends reassessing borrowing capacity before resuming a property search. Buyers should set a price range that remains comfortable if rates rise further, rather than treating their maximum loan approval as a target.

Look for value, not just a lower price

In a softer market, builders may offer upgrades, incentives or discounts. Edgar says an owner occupier should weigh those offers against the location, the quality of the home and their long-term plans. A purchase that is affordable today and resilient to future changes matters more than chasing a headline deal.

Watch the turn in confidence

Edgar says confidence can change quickly when buyers start to expect rates to fall. Buyers who are ready, informed and inside a comfortable budget are better placed to respond when that shift arrives.

Read the Reserve Bank’s monetary policy decision, then explore Natgroup Projects’ current opportunities.