Australia’s central bank has recently kept the cash rate at 3.6%, and will not cut until 2026. Inflation is stable (3.2% CPI, 3.0% core), housing supply is tight, demand is strong, and auction clearance rates are approximately 70%.
- RBA cash rate: 3.6% (held steady; next cut likely 2026).
- Inflation: 3.2% CPI, 3.0% core (near top of RBA’s 2–3% target band).
- Home prices: Expected to rise ~5.1% by 2026 (Melbourne +5.8%, Sydney +5.6%).
- Auction clearance: ~70% in major cities (high competition, low listings).
- Investor yields: Remain firm with vacancy tight.
- Stamp duty (SA): Planned phase-out by 2041; first-home buyers under $1 million pay no duty.
What a steady rate means for your borrowing power
With interest rates on hold, borrowers gain certainty and can budget confidently. A frozen rate keeps your borrowing power strong for now, so there’s less rush to fix a loan immediately. However, it pays to review your home loan: you may find a better refinance or fixed-rate deal that saves on interest. If rates do fall in 2026 as forecast, switching early or locking in a fix could save thousands over time. Rising home values (5% growth forecast) also build equity. We can show you how to use that extra equity – for example, to boost your deposit or pay down debt – to strengthen your loan position.
Opportunities for investors
Investors are active in this steady market. Tight rental markets and strong yield levels are boosting confidence. Many investors are using saved deposits or existing equity to secure properties now. A held rate gives certainty on repayments, and any later rate cut could drive up property values. Our brokers help structure investment loans (e.g. interest-only, split loans) to suit your goals, and advise on timing purchases to lock in value and tax benefits. By positioning now, investors can make the most of stable financing and solid rental returns.
Stamp duty reforms and first-home buyers
First-home buyers should also watch policy changes. In South Australia, the opposition plans to scrap stamp duty by 2041 and immediately exempt first-timers on homes under $1 million. They call stamp duty an “inefficient tax” that adds cost to buying. Waiving or eliminating stamp duty can help buyers save thousands of dollars upfront, as well as lower the deposit amount required. While the specifics vary from state to state, any form of stamp duty relief is an increase to affordability, which can stimulate buyer activity. Our brokers will consider an estimated stamp duty saving in a loan strategy, thereby enhancing your borrowing capacity and enabling you to afford a larger home.
How BeSmart Finance can help
Changes in rates and taxes can be overwhelming, but you do not have to navigate them on your own. BeSmart Finance can help both first-home buyers and investors through these fluctuations. We’ll determine your updated borrowing capacity, compare home loan products and arrange the timing of one of the most important purchases or refinances in your life.
We’ll also help you tap into government schemes (like the expanded Home Guarantee Scheme) and any stamp duty concessions. Ready to get started? Call us on 0408 659 819 or book a free 30-minute consultation to talk through your options.
