The Reserve Bank has increased the cash rate by a full percentage point in 2026, and further rises remain possible.
For prospective buyers, that raises an important question: is it better to purchase now or wait for borrowing costs to come down?
The case for buying now
Property prices have softened in many markets, giving buyers more choice and potentially greater negotiating power. Buying now could mean securing a suitable home without as much competition.
The downside? Higher interest rates mean larger repayments and potentially less borrowing power.
The case for waiting
Waiting could give you more time to build your deposit and strengthen your finances. And if rates eventually fall, your borrowing power may improve – although there’s also a risk rates could rise further.
But lower rates could also bring more buyers back into the market, increasing competition.
Ultimately, the decision should depend on your circumstances, not predictions about interest rates.
Buying now and waiting both have their advantages. A conversation about your borrowing power and potential repayments could help you decide which approach makes more sense for you.
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Waiting for interest rates to fall might sound sensible, but it could mean missing an opportunity in today’s property market. The Reserve Bank has increased the cash rate by a full percentage point in 2026, and further rises remain possible. For prospective buyers, that raises an important question: is it better to purchase now or wait for borrowing costs to come down? The case for buying now Property prices have softened in many markets, giving buyers more choice and potentially greater negotiating power. Buying now could mean securing a suitable home without as much competition. The downside? Higher interest rates mean larger repayments and potentially less borrowing power. The case for waiting Waiting could give you more time to build your deposit and strengthen your finances. And if rates eventually fall, your borrowing power may improve – although there’s also a risk rates could rise further. But lower rates could also bring more buyers back into the market, increasing competition. Ultimately, the decision should depend on your circumstances, not predictions about interest rates. Buying now and waiting both have their advantages. A conversation about your borrowing power and potential repayments could help you decide which approach makes more sense for you.