Entering the property market can feel like a big step, but for many Australians, the current environment could be opening the door to new possibilities.

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-approval for your home loan 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. 

Interest rate news

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.

In a statement following its latest cash rate decision, the RBA noted that some of the inflation risks that were previously identified are now emerging, pointing to ongoing disruptions in global oil supply and stronger-than-expected growth and inflation in Australia. The central bank also reiterated that it remains focused on returning inflation to its target range and indicated it is prepared to raise the cash rate again if further action is needed. 

Many lenders were quick to update their 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.

Economists are divided as to whether the RBA will raise the cash rate again, or leave it on hold for the remainder of 2026. Many believe that rate relief could be more than a year away. 

Home value movements

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.

Home Value Index

* Monthly Home Values figures as of 30 September 2026
* Australian auction results, clearance rates and recent sales for the week ending 11 October 2026
* The clearance rate is preliminary and current as of 4:30 pm AEDT on 13 October 2026

Ready to buy?

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.

Additional sources
Cotality Daily Home Value Index: Monthly Values
https://www.corelogic.com.au/our-data/auction-results
https://www.realestate.com.au/auction-results