What Today’s Decision Means for Your Borrowing Power, Refinancing Options and Property Plans
- Today’s RBA Decision — What Actually Happened
The Reserve Bank of Australia has held the cash rate at 4.35%, marking another month of stability as inflation continues easing but remains above the 2–3% target band.
Markets had priced in a 75% probability of a hold, but borrowers were still anxious — and for good reason. Even when the RBA holds, lenders can (and often do) reprice independently.
What this means in simple terms:
- Your current rate won’t automatically change
- Your borrowing power won’t improve yet
- Lenders may still adjust fixed or variable rates based on funding costs
- Refinancing opportunities remain strong due to large rate gaps between lenders
- How Today’s Decision Affects Your Borrowing Power
Even with a hold, borrowing power remains heavily constrained by:
- Serviceability buffers (still 3% above the actual rate)
- Higher living‑cost benchmarks
- Lender‑by‑lender policy tightening
- DTI limits increasingly applied at 6× income
For many borrowers, borrowing power is still 20–30% lower than in 2021–22.
Who is most affected:
- First‑home buyers
- Upgraders relying on equity release
- Investors with multiple loans
- Borrowers with high discretionary spending or variable income
Who benefits:
- Borrowers with strong savings history
- Low‑debt households
- Clients with stable PAYG income
- Applicants with clean credit and low liabilities
- Refinancing: Why It’s Still the Biggest Opportunity in 2026
Refinancing remains at record levels, now representing 38% of all residential lending.
The reason is simple:
The gap between the cheapest and most expensive variable rates is now up to 1.65 percentage points.
For a $600,000 loan, that’s a difference of $287 per month.
Top refinancing triggers right now:
- Your rate starts with a 6
- You haven’t had a pricing review in 6–12 months
- You fixed in 2021–22 and rolled off
- Your lender has repriced you higher than new customers
- You want to consolidate personal or car loans
- Why Fixed and Variable Rates Are Moving in Opposite Directions
This is the part confusing borrowers the most.
Even though the RBA has held the cash rate, fixed rates have been rising.
Here’s why:
- Fixed rates follow bond markets, not the RBA
- Global funding costs have increased
- Banks are pricing in longer‑term inflation risk
- Overseas central banks are signalling slower‑than‑expected rate cuts
Meanwhile, variable rates are more closely tied to the RBA — but lenders still adjust them independently based on funding pressures.
In short:
- Fixed rates = future expectations
- Variable rates = today’s conditions
- What Borrowers Should Do This Week
If you have a home loan
- Request a pricing review
- Compare your rate to the current market average
- Check your redraw/offset balance
- Review your repayment strategy (minimum vs extra)
If you’re thinking about refinancing
- Compare your current rate to the best available
- Review your equity position
- Assess your borrowing power under today’s rules
- Consider consolidating higher‑interest debts
If you’re buying
- Update your pre‑approval
- Re‑check your borrowing power
- Review your deposit strategy
- Understand how rate stability affects competition in your price bracket
If you’re an investor
- Review rental yield vs borrowing cost
- Check your DTI exposure
- Consider interest‑only vs P&I
- Assess tax implications under the latest changes
- What This Means for SA/NT Borrowers Specifically
Your markets behave differently from Sydney/Melbourne.
South Australia
- Low stock levels continue to push prices up
- First‑home buyer demand remains strong
- Regional SA remains one of the most stable markets nationally
Northern Territory
- Investor activity is rising due to strong rental yields
- Borrowers benefit from more flexible lender policies
- Defence relocations continue to drive demand
- Final Word: Rate Stability Doesn’t Mean You Should Sit Still
A hold from the RBA is not a green light to relax.
Borrowers who review their loan annually save significantly more over the life of their mortgage than those who “set and forget”.
The biggest mistake right now is assuming your rate is competitive just because the RBA didn’t move.
If you’d like a personalised breakdown of how today’s RBA decision affects your borrowing power, refinancing options or next property move, I’m here to help.
A quick 10‑minute chat can save you months of uncertainty — and potentially thousands in interest.