The Reserve Bank of Australia has lifted the cash rate by 25 basis points to 3.85%, a move driven by inflation pushing higher again, demand holding up stronger than expected, and a labour market that’s still running hot. It’s a clear signal the RBA thinks the economy can take more pressure, even if households are already feeling it.

For borrowers, the impact is immediate: repayments creep up, budgets tighten, and the margin for error shrinks. When money costs more, overpaying by “just a little” can sting for years.

That’s where the buying process has to get sharper. In a market that can change speed quickly, it’s time to compare buyer’s agents properly, based on local results, fee style and buying approach, not whoever shouts the loudest online. BuyerAgentFinder exists to make that comparison simple, so you can shortlist the right help for your suburb and strategy

What the RBA actually did, and why it matters

Cash rate lifted to 3.85%

The RBA raised the cash rate by 25 basis points, taking it to 3.85%. The cash rate is the benchmark interest rate in Australia. It’s what banks pay (or earn) to borrow and lend money overnight in the money market, and it acts like the starting point for interest rates across the economy.

A basis point is just a tiny unit used in finance:

• 1 basis point = 0.01%

• 25 basis points = 0.25%

When the cash rate rises, lenders usually pass at least some of that increase on to borrowers through higher variable rates and, often, higher fixed-rate pricing over time. That’s why a small move on paper can still lift repayments and reduce borrowing power in practice.

The key drivers: inflation up, demand stronger than expected

In plain English, the RBA’s message is: inflation is still too high, and the economy hasn’t cooled enough.

Three big ideas sit underneath that:

• Inflation is above the target band and has started lifting again, which tells the RBA price pressures aren’t fully under control yet.

• Demand has been stronger than expected, meaning households and businesses are still spending enough to keep prices sticky.

• Capacity pressures are still there, which is a fancy way of saying parts of the economy are still stretched. When supply can’t keep up with demand, prices tend to keep climbing.

So the rate rise is the RBA leaning harder on the brakes to stop inflation from getting comfortable at a higher level.

Why the “unanimous decision” line spooked people

The word “unanimous” matters because it signals the Board wasn’t split or uncertain. Everyone around the table agreed the data pointed to the same move.

Markets and borrowers read that as:

• the RBA thinks the case for higher rates is clear, and

• there’s a higher chance rates stay elevated for longer, or that another increase is on the table if inflation doesn’t settle.

In other words, it can shift expectations from “maybe this is a one-off” to “this could be the start of a tougher stretch”.

What a rate rise does to buyers in the real world

Borrowing power: the quiet hit most buyers miss

Most buyers focus on the monthly repayment. The sneakier hit is borrowing power.

When rates rise, lenders stress-test your loan at a higher “buffer” rate to make sure you could still afford repayments if things move again. That test can reduce how much the bank will lend, even if your income hasn’t changed. In simple terms: the same salary can buy less house overnight.

Practical takeaway: before you negotiate, make an offer, or walk into an auction, re-run your numbers. Ask your broker for an updated borrowing capacity, and set a fresh top limit that includes a buffer for rate changes and costs like strata, insurance, and maintenance. If your budget has shifted, you want to know now, not after you’ve emotionally committed to a property.

Confidence changes fast when repayments rise

Rate cuts can lift confidence quickly. Rate rises can pull it back just as fast.

When repayments go up, buyers tend to pause, vendors get less bold, and the market can start to feel patchy. You’ll often see it first where prices have run hard and affordability is already tight. That’s why a lot of market commentary expects Sydney and Melbourne to cool more than some other capitals, at least in the near term, while cities with stronger supply pressures can stay firmer. It’s not a guarantee, but it’s the sort of split that shows up when the cost of money rises.

For buyers, that shift in mood matters because it changes the game from “just win the property” to “win it at the right price, with the right terms”.

Lending policy can bite at the same time

Rate rises are only one part of the picture. Credit settings can change too. Lenders can tighten how they assess income, living expenses, or existing debts. They can also tweak policies for certain property types, high LVR loans, or investor lending.

The result is the same: borrowing can get harder, approvals can take longer, and small mistakes can cost more. That’s why it’s smart to treat every step like it matters: finance checks upfront, clean paperwork, realistic conditions, and a clear walk-away price.

And it’s also why this is the moment to compare buyer’s agents based on process and discipline, not hype. In a tighter market, you want someone who can filter out bad deals, keep you calm, and negotiate hard when the numbers don’t stack up.

Property market split: where conditions may soften, and where shortages can keep prices firm

Sydney and Melbourne: momentum can stall first

Sydney and Melbourne are often the first markets to “stutter” when rates rise, because affordability is already stretched and buyers are more rate-sensitive. Recent reporting has pointed to cooling signals such as softer auction conditions and small price dips late in 2025, alongside forecasts for slower growth through 2026 compared with other capitals. 

The practical read for buyers is simple: you may see more hesitation, more price negotiation, and more vendors needing to meet the market, but the best homes can still attract competition. That’s where discipline matters: know your ceiling, stick to it, and don’t confuse a busy open home with a good deal.

Brisbane, Perth, Adelaide: supply constraints can keep a floor under prices

In Brisbane, Perth and Adelaide, the rate rise can still take heat out of the market, borrowing power drops everywhere, but tight supply can keep a floor under prices. That’s why several forecasts still expect these cities to outperform Sydney and Melbourne in 2026, even if growth slows from the hot pace seen in 2025. 

For buyers, this usually means you need two things at once: patience (because negotiations can open up as rates bite) and speed (because well-priced properties in low-listing suburbs can still sell quickly). It’s not about chasing “boom” talk; it’s about understanding what shortage conditions do to bargaining power.

Hobart and Darwin: why investors may rotate

When rates rise, investors often get pickier. If cash flow tightens and yields look thin in the bigger capitals, some buyers start scanning for markets where the purchase price is lower, rents are firmer, or competition feels lighter. That can put places like Hobart and Darwin back on the shortlist for some investors, not as a sure thing, but as a behavioural shift you tend to see when affordability pressure builds. 

The key word is may. Markets move for lots of reasons, and the right choice depends on your numbers, your risk tolerance, and whether you’re buying a home or an investment.

“Play defence”: smart buyer moves in a rising-rate market

Choose your non-negotiables before you inspect

When rates rise, the market can feel jumpy. The best way to stay calm is to decide your rules before you fall in love with a place.

Lock in your non-negotiables:

• Budget ceiling: your real max, based on updated borrowing power and a buffer.

• Commute and lifestyle: the radius you’ll actually live with, not the fantasy version.

• School zones and catchments: if it matters, make it a hard filter.

• Land vs unit: be honest about what you want long-term (space, strata, maintenance, resale).

• Renovation tolerance: time, money, and stress, not just “potential”.

• Cash buffer: keep room for rate rises, repairs, and life stuff that always pops up.

This is where comparing buyer’s agents helps. A good one will pressure-test your criteria and stop you drifting into “maybe we can stretch” territory.

Get ruthless about deal quality

Rising rates punish sloppy buying. The danger moment is when you’ve inspected 20 properties, you’re tired, and you tell yourself, “We’re so close, let’s just get it done.”

That mindset is expensive.

Two moves that save buyers:

• Don’t overpay because you’re emotionally invested. Being “close to buying” isn’t a reason to pay above value.

• Create a walk-away rule. Write it down. Examples:

  • Price goes above your limit by even $5k–$10k

  • Building report shows major issues (water ingress, structural movement)

  • Strata red flags (big upcoming levies, nasty defects, poor sinking fund)

  • The numbers don’t stack up after re-checking finance

A buyer’s agent with a clear shortlist-and-reject process is useful here, you’re paying for judgement, not just access.

Negotiate like the market has changed

If you negotiate like it’s still last year’s market, you’ll get last year’s results. Rate rises change buyer behaviour, and that can create pockets of leverage, if you use it properly.

Private treaty tactics

• Use time and terms: ask for a longer settlement if it helps your cash flow or sale timing.

• Keep finance realistic: don’t play games with subject-to-finance timelines. Protect yourself, but stay credible.

• Stay disciplined on comparable sales: anchor your offer to recent, relevant comps, not the vendor’s dream price.

• Be ready to walk: the strongest negotiation tool is genuinely being okay to leave.

Auction tactics

• Consider a pre-auction offer: if it’s sharp, clean, and time-bound, it can force a decision and reduce bidding chaos.

• Have a bidding plan: decide your ceiling, your increments, and your stop point before you raise a hand.

• Don’t chase the room: auctions are designed to make you feel like you’re missing out. Let others overpay if they want to.

In a rising-rate market, defence isn’t about doing nothing. It’s about buying with rules, evidence, and a clear plan, so you don’t pay today for yesterday’s confidence.

Why comparing buyer’s agents matters more after a rate rise

The gap between “helpful” and “expensive mistake” widens

When rates rise, the cost of getting it wrong rises too.

In a softer or split market, there can be better buying opportunities, but only if you can spot real value and avoid the traps. Due diligence and negotiation can save serious money: the wrong strata, a hidden defect, or paying above fair value can wipe out years of gains, especially when repayments are higher.

And if you’re time-poor, the risk is bigger. Rushed inspections, skim-reading contracts, and relying on “it feels right” decisions are exactly how buyers end up with:

• a property that’s hard to resell,

• surprise repair bills,

• or a price that never made sense in the first place.

That’s why this is the moment to compare buyer’s agents properly , not just who’s popular on social media, but who has the process to protect you when the market gets less forgiving.

What a good buyer’s agent should do in 2026 conditions

A strong buyer’s agent in 2026 isn’t just opening doors. They should bring structure, discipline, and negotiation muscle. Look for four things:

• Evidence-led suburb selection: decisions based on data and local sales, not hype. They should explain why a suburb fits your budget and strategy, and what would make them change their view.

• A clear reject list: the best agents say “no” often. Ask what they routinely avoid (busy roads, poor strata, flood risk, awkward layouts, oversupplied pockets) and watch how specific they are.

• Deal sourcing beyond portals: if their whole process is scrolling the same listings you can see, you’re not getting much value. They should have a system for off-market, pre-market, and agent networks, and still be willing to walk away if the deal isn’t right.

• A negotiation plan matched to the sale method: auctions and private treaty require different tactics. A good buyer’s agent should have a clear approach for each, including your walk-away price, the bidding strategy, and the terms that can improve your position.

Bottom line: after a rate rise, you don’t want “help”. You want better decisions, and comparing buyer’s agents side-by-side is how you find the one who can actually deliver that.

How to choose a buyer’s agent (use this checklist)

Compare by fit, not fame

A buyer’s agent can be a huge advantage, but only if they suit your suburb, budget, and goal. Ignore the loud marketing and compare based on fit.

Here’s what to check:

• Local buying record in your target suburbs

  Ask for recent examples that match what you’re trying to buy (price point, property type, street quality). “We buy everywhere” is rarely a strength.

• Strategy match

  Make sure their core work lines up with your plan:

  • Home vs investment: owner-occupier needs (schools, lifestyle, long-term liveability) aren’t the same as an investor’s numbers-first approach.

  • Yield vs growth: they should be clear on what they prioritise and why.

  • Renovation vs turnkey: some agents are great at spotting value-add; others focus on low-risk, move-in-ready stock.

• Communication style and reporting cadence

  You want clear updates, plain-English reasoning, and consistent check-ins. If they’re vague early, it usually gets worse once you sign.

Fees and scope: know what you’re paying for

Buyer’s agent fees vary, but the bigger issue is what the fee actually covers. Get the scope in writing and compare apples with apples.

• Fixed fee vs percentage

  A fixed fee can feel cleaner and easier to budget. A percentage fee can rise with the purchase price, so ask how they keep incentives aligned with your interests.

• What’s included

  Clarify whether the service covers:

  • Search and shortlisting

  • Inspections (and who attends)

  • Due diligence support (contract review coordination, building/pest, strata checks)

  • Negotiation and bidding (private treaty and/or auction)

  • Access to off-market/pre-market opportunities

• Exit clause and exclusivity

  Check:

  • How you can exit if it’s not working

  • Any minimum term or cancellation fee

  • Whether you’re locked into using them exclusively (and what that means in practice)

10 questions to ask before you sign

1. How many purchases have you completed in my target suburbs in the last 12 months?

2. What’s your process for rejecting properties and why?

3. How do you source off-market or pre-market opportunities?

4. Who does inspections and due diligence, and what reports do I get?

5. How do you set value and stop me overpaying?

6. What’s your negotiation plan for private treaty vs auction?

7. What’s included in your fee, and what costs extra?

8. Is your fee fixed or percentage-based, and why?

9. What’s the exit clause if it’s not working?

10. Do you have any conflicts of interest I should know about?

If an agent answers these clearly, with specifics and examples, you’re off to a good start. If they dodge, generalise, or rush you to sign, take that as useful information too.

Next step: compare buyer’s agents side-by-side

Rate rise or not, don’t choose a buyer’s agent blindly.

BuyerAgentFinder helps you compare buyer’s agents by local experience, fee style, services, and buying approach, so you can shortlist the ones that actually fit your suburb and strategy.