The RBA Raised Rates. What Should Sydney Buyers Recheck Before Making an Offer?
Reading time 5 minutes
by Parker Hadley
The Reserve Bank has raised rates again. If you’re buying in Sydney, the first call isn’t to the selling agent to ask how much the vendor will take off. It’s to your broker or lender to check whether the number you’ve been shopping with still holds up.
On 3 November 2026, the RBA lifted the cash rate target from 4.60% to 4.85%. Six board members voted to raise it and three voted to hold. The RBA said inflation was still widespread and expected it to take longer than previously forecast to return to the top of its target range, even as the economy slowed.
For buyers, you don’t need a view on the next RBA meeting to make a better decision at this one. You need to know what you can borrow, what you can comfortably repay and what this particular home is worth. Those are three different numbers.
What does a 0.25 percentage point rise cost?
The cash rate is not your mortgage rate. Your lender sets your rate and decides when any change applies. To put the move in dollars, here’s what happens if a lender passes on the full rise and an example home loan moves from 6.00% to 6.25%.
| Loan amount | Monthly at 6.00% | Monthly at 6.25% | Monthly increase |
|---|---|---|---|
| $600,000 | $3,597 | $3,694 | +$97 |
| $800,000 | $4,796 | $4,926 | +$129 |
| $1,000,000 | $5,996 | $6,157 | +$162 |
Illustration only. Assumes monthly principal-and-interest repayments over 30 years at each example rate, with no fees or offset balance. Figures are rounded independently. Loan amount is not the purchase price. These are not lender quotes or forecasts.
On an $800,000 loan, that’s about $130 more a month. If you’re already stretching to cover the mortgage, that matters before you add council rates, insurance, strata levies or the jobs you spotted at the inspection. Re-run those costs for the home you’re looking at, not just the number on your loan calculator.
Recheck your pre-approval before you bid
A pre-approval is conditional. A rate rise doesn’t mean it automatically disappears, but don’t assume the amount, conditions or numbers you ran in October are unchanged. Ask your broker or lender to confirm what applies to you and whether they need to reassess anything.
- If you’re still looking: Confirm your likely borrowing limit and repayments at the lender’s current rate. Ask what would change if rates rose again.
- If you’ve found a home: Give your broker or lender the address and proposed price. Check what still needs to happen for formal approval, including any valuation or property-specific lending conditions.
- If you’re about to bid or exchange: Have your solicitor or conveyancer explain when you’ll be bound and whether any finance or cooling-off protection applies. There’s no cooling-off period when you buy at a NSW auction. Don’t leave the finance check until after the hammer falls.
Does a quieter Sydney market give buyers more room to negotiate?
Potentially, but the rate decision alone won’t tell you where. Cotality’s November Home Value Index showed Sydney dwelling values fell 1.6% in October and 4.7% over the three months to October. That weakness was already there before this rate rise. It’s a city-wide measure, not a discount you can apply to a house in Rozelle or a townhouse in Gladesville.
A home with a long campaign, few credible offers and a seller who wants a decision before summer may give you room to negotiate on price or settlement. A well-priced family home with a good layout, parking and few alternatives nearby can still attract prepared buyers. Look at recent genuinely comparable sales, ask what’s changed in the campaign, and work out your ceiling before you hear anyone else’s bid.
For a closer look at local conditions, see our November Peninsula & Bays Property Pulse, which covers the market going into the decision. Our guide to Sydney price guides explains how to test an agent’s number against the sales evidence.
Set a walk-away price you’d be happy to pay on Monday
Start with what you can fund after purchase costs and what you’re comfortable carrying each month. Then assess the property on its merits. If the home is worth less than you can afford, the lower figure wins. If it’s worth more than you can comfortably pay, that doesn’t make it the wrong price. It just makes it the wrong purchase for you.
If you’re still searching, we can help you narrow the brief and assess what’s worth pursuing through Buy Your Home. If you’ve already found a place, Home Negotiation & Support can help you test the price, coordinate due diligence and decide how to negotiate or bid. Your broker or lender confirms the finance. Our job is to help you decide whether the property makes sense at the price you’d have to pay.
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This article is general information, not personal financial or legal advice. Confirm lending terms with your lender or broker and contract terms with your solicitor or conveyancer.
