This month, the Reserve Bank of Australia raised the official cash rate by 0.25 per cent to 4.35 per cent, the third consecutive increase in 2026.

Rate rises tend to make buyers pause, and that’s understandable. But periods of lower confidence in the market often work in favour of buyers who do move. Competition eases, availability improves, and there’s more room to make a considered decision. It’s worth keeping that in mind before deciding to wait.

If you’ve been thinking about buying a home, here’s a clear look at what’s changed, what it means for your budget, and what it looks like to buy new in this environment.

What does the interest rate rise add to your repayments?

When the RBA moves, banks follow. Most lenders will increase variable home loan interest rates by the same 0.25 per cent. In practical terms, that adds around $80–$100 per month to a $600,000 loan, but every situation is different. MoneySmart’s mortgage calculator can give you a clearer picture based on your own numbers.

It’s also worth remembering that the rate you start on isn’t fixed. The major banks are divided on whether further hikes are coming – ANZ, CBA and NAB are not forecasting further rises this year, while Westpac is predicting two more. What’s clear is that the cash rate moves over time. Most buyers end up on a different rate to the one they started on.

Buying a house and land package? Here’s what works in your favour right now.

Buying new is different to buying established, and a few of those differences genuinely work in your favour in this environment.

– Your repayments build gradually. Your loan draws down in stages through construction, so you only pay interest on the portion that’s been used, not the full loan from day one. That means you’re not absorbing the full rate impact while you’re still waiting to move in.

– Your price is fixed at contract. Whatever happens in the market during your build, the price you signed is the price you pay. If confidence keeps dropping and values soften, you’re protected. If the market recovers, you’ve already locked in your price.

– You may pay less stamp duty. In Victoria, eligible off-the-plan buyers can access stamp duty concessions not available on established properties. It’s a meaningful saving on your upfront costs, and right now, every dollar counts.

Interest Rates: The Bigger Picture

The interest rate you buy at is one part of your decision. What you’re really choosing is where your family lives. At Orana, the green space, wetlands, parks and community amenity are already established. 

Local schools, everyday shopping and transport are nearby, and many families are already here. That doesn’t change with the cash rate, and right now, with fewer buyers competing, you have more room to choose well.

Speak with our sales team to find out what’s currently available at Orana.