What RBA raising interest rates in 2026 could mean for property buyers?
As RBA prepares for its first meeting of the year, there has been renewed discussion around where interest rates may head in 2026 and what that could mean for you as a property buyer.
Here is a clear and practical snapshot of the outlook and why it matters.
RBA outlook for 2026
After a series of rate cuts in 2025, the conversation has shifted. The RBA has indicated that further reductions are unlikely in the near term and that it is currently weighing two possible paths this year.
One option is to keep rates on hold for longer.
The other is a possible increase later in the year if inflation remains persistent.
Inflation has eased slightly but is still sitting above the RBA target range of two to three percent. This is why the central bank is maintaining a cautious stance.
At present, the cash rate remains at 3.6 percent and has been unchanged since August. Most economists expect the upcoming meeting to result in no change, with any potential move more likely later in the year rather than immediately.
What ‘higher interest rates for longer’ means for property buyers
Interest rate expectations matter as they influence borrowing capacity, buyer confidence and overall market behaviour.
If rates were to rise, mortgage repayments on variable loans could increase and borrowing limits may tighten slightly. Even discussion around future hikes can cause some buyers to pause, while others see it as an opportunity to act before conditions shift.
Importantly, changes in interest rates do not affect all suburbs equally. Well priced markets with strong demand fundamentals often continue to perform even when sentiment softens elsewhere.
Our take at Ariza Buyers Agency
Rather than reacting to headlines, we focus on local fundamentals and long term demand drivers.
This includes looking closely at affordability trends, rental demand, population growth, employment hubs and infrastructure investment. These factors tend to matter far more than short term interest rate noise.
Markets do not move together. Some slow, some stabilise and others continue to quietly perform.
What you should consider now
If you are planning to buy a property in 2026, this can be a valuable time to review your strategy calmly and clearly.
You may want to:
Review your borrowing position and buffers
Focus on suburbs with proven demand and limited supply
Be ready to act confidently if the right opportunity arises
Align your expectations with current market conditions
If you would like to discuss how the current interest rate outlook may affect your personal strategy, simply book a meeting with us and we will take it from there.