Yesterday’s decision to keep interest rates on hold has given many home buyers a brief moment to breathe. After a year of uncertainty, any pause can feel like progress. But beneath the surface, market sentiment is shifting again. Inflation is proving sticky, cuts are no longer on the near horizon, and economists are openly talking about the potential for rate increases if inflation refuses to cool.

For anyone looking to buy, upgrade, or refinance, this environment matters. A steady rate today does not mean a steady rate tomorrow. Borrowing power could tighten if the Reserve Bank is forced to act, and that can change how far your budget stretches, how competitive you can be in the market, and how quickly you need to move.

What a rate hold actually means for home buyers

When the cash rate remains the same, buyers often assume very little changes. In reality, a rate hold usually signals a few things.

It can suggest that economic conditions are stable enough for now, but not strong enough to allow rate cuts. It also gives lenders confidence to maintain their current pricing, although some banks may still adjust rates to manage margins, risk settings, or loan book demand.

Importantly, a hold in the cash rate does not guarantee stability for borrowers. If inflation moves in the wrong direction, the RBA may need to act swiftly. The risk of higher rates is real, and the next few months will be critical.

Borrowing power is still sensitive to small shifts

Lenders assess your borrowing capacity using buffers. Even if you apply at today’s rate, banks stress test your loan at a higher rate to ensure you can manage repayments if conditions worsen. If the cash rate rises, these buffers go up as well.

That means even a small increase has a big effect.

You may qualify for a certain amount today, but if the rate rises in the next review cycle, your borrowing power could drop before you have time to secure the property you want. In competitive markets, that can mean missing out, adjusting your search, or delaying your plans altogether.

For buyers trying to enter the market, now is a practical window to act before borrowing power tightens further. For upgraders and investors, the current pause is a chance to assess strategy and get ahead of any rate movements.

Why refinancing should be on the table right now

Refinancing has surged over the past twelve months, but many households still remain with lenders who have not passed on competitive pricing. A rate hold does not mean banks stay quiet. Many use these moments to adjust pricing across fixed and variable products, and they will continue to compete for strong customers.

If you are on a higher rate, if you have not reviewed your loan in more than twelve months, or if your fixed term is ending soon, refinancing can put you in a stronger position. It can reduce your repayments today, protect your budget if rates lift later, and give you flexibility across structures that suit your goals.

This is also the moment to keep banks honest. When lenders know borrowers are prepared to look elsewhere, they sharpen their offers and review discretionary pricing. A broker makes that process fast, objective, and grounded in actual market comparisons.

Act before the next RBA meeting

The window between RBA meetings is valuable. Banks adjust their policies and appetite during these periods, and buyers who move early often secure approvals before any credit tightening filters through. Acting now means you can lock in your borrowing capacity at today’s settings and give yourself more certainty.

If the RBA signals future rate rises, buyers who have not prepared may find themselves reassessing their budget at the very moment they are trying to negotiate. For refinancers, early action means avoiding the rush that follows any major rate announcement, which typically slows down approval times across banks.

How we help you move quickly and with confidence

At MAW Money, our focus is on speed, clarity, and strategy.

We help you get your pre-approval in place quickly, so you enter the market with certainty and a clear budget. We handle the paperwork, the lender comparisons, and the negotiations, which saves you time and removes the guesswork.

For refinancing, we do the heavy lifting. We compare your current loan to the wider market, identify opportunities to save, and negotiate with your bank to secure a fairer deal. If a better option exists, we guide you through the switch and ensure the process is smooth from start to finish.

We also keep an eye on lending policy changes. This means you get advice that matches the conditions you are buying or refinancing in, not general guidance that may no longer apply. In a market shaped by uncertainty, informed and timely decisions matter.

The bottom line

Rates may be steady today, but the outlook is shifting. Inflation needs to ease, and until it does, the risk of further rate increases sits firmly on the table. Buyers and refinancers who prepare now will be in a stronger position than those who wait.

If you are considering a move or want to review your loan, now is the time to act. A clear strategy and the right support can make all the difference before the next RBA meeting.