What a 3.6% Cash Rate Means for Your Next Home or Investment
In November 2025, the Reserve Bank of Australia (RBA) left the official cash rate at 3.6%. Economists expect the first chance for a cut will be in 2026. Currently, inflation is just above the RBA's target (CPI is ≈3.2% and core is ≈3.0%), so the interest rates are unchanged. For borrowers, an unchanged cash rate means borrowers have certainty about their mortgage repayments, they won't suddenly increase, and they can plan with more clarity.
In practical terms, this is a good time to review your home loan with a broker. You may find better interest rates or features on the market, and locking in a fixed rate now can protect you until rates fall. If you’re considering buying before any cut, a broker can help time your purchase and loan structure to make the most of today’s rates.
Market Outlook: Prices and Demand
Despite the rate pause, housing values are still forecast to rise over the next year. Australia’s property market is expected to climb about 5.1% in 2026, led by cities like Melbourne (+5.8%) and Sydney (+5.6%). Strong demand and low listings are keeping buyers active: agents report auction clearance rates around 70%. In other words, most homes for sale are still attracting multiple buyers. For you, this means competition remains high. If you wait too long, you could end up paying more or facing more bidding. On the other hand, a steady rate environment gives you breathing room to get finances in order. Talking to a mortgage broker now can help you understand your borrowing power – how much you can afford – and whether it’s better to buy sooner rather than later.
Investor Confidence and Yields
A key trend is strong investor interest. Rental yields have held firm and vacancies are low, which keeps property investment attractive. According to brokers, investors are busy at auctions and inspections as interest rates stay flat. Market surveys back this up: nearly 38% of Australians now say it’s a good time to buy a property, up from just 28% a year ago. Higher confidence means more buyers (especially investors) are re-entering the market, while being mindful of rates. As mortgage brokers, we’re seeing more clients interested in adding to their portfolios. The combination of stable rates, solid rental returns, and forecasts of rising house prices suggests opportunities for investors even before any rate cuts arrive.
SA Stamp Duty Changes: A Potential Boost
In South Australia, a proposed policy could boost affordability. The opposition Liberal Party has pledged to phase out stamp duty by 2041. The plan starts immediately by removing stamp duty for first-home buyers on existing homes up to $1 million. Over the next five years, they would gradually adjust tax brackets, with stamp duty fully abolished within 15 years. Leader Vincent Tarzia calls stamp duty “an extremely inefficient tax” that makes it harder for young people to buy and older people to downsize. While this proposal is not yet law, it signals big changes.
Key Takeaways for Borrowers and Investors
Borrowing power is strong today: With the rate fixed at 3.6%, your repayments won’t rise in the short term. Use this certainty to review or refinance your loan now. Getting a fresh loan offer or fixing a rate can save money over time.
Act before prices rise: Home prices are expected to grow (~5% next year). High auction clearance (~70%) shows competition is tough. Talk to your broker about timing your purchase or ramping up your savings.
At ASK Financials, we guide you through all these developments. We help structure loans, time purchases, and use your home equity wisely. We explain exactly how steady rates and tax changes affect your situation.
Get in contact with our brokers today to understand your new borrowing capacity. We keep the loan process simple and guide you every step of the way. You can schedule your free consultation, or reach out at any time on 0433 944 055 so we can secure the best home or investment suitable for your home or investment needs.
