{"id":7035994,"date":"2026-08-10T01:56:28","date_gmt":"2026-08-10T01:56:28","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/rate-rises-wipe-100000-from-australian-homebuying-budgets\/"},"modified":"2026-08-10T01:56:28","modified_gmt":"2026-08-10T01:56:28","slug":"rate-rises-wipe-100000-from-australian-homebuying-budgets","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7035994","title":{"rendered":"Rate rises wipe $100,000 from Australian homebuying budgets"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"attachment_1153073\" style=\"width: 1290px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" width=\"1280\" height=\"720\" data-public-id=\"news-lifestyle-content-assets\/wp-content\/production\/capi_4d65653480bde9cb5b2a20e39156d4e3_7495f2f345807206e2962c941d548b90.jpeg\" aria-describedby=\"caption-attachment-1153073\" src=\"https:\/\/dam-assets.au.reastatic.net\/images\/w_1280,h_720\/v1786326828\/news-lifestyle-content-assets\/wp-content\/production\/capi_4d65653480bde9cb5b2a20e39156d4e3_7495f2f345807206e2962c941d548b90\/capi_4d65653480bde9cb5b2a20e39156d4e3_7495f2f345807206e2962c941d548b90.jpeg?_i=AA\" alt=\"\" data-capiid=\"7495f2f345807206e2962c941d548b90\" class=\"size-full wp-post-1153075 wp-image-1153073\" data-format=\"jpeg\" data-transformations=\"\" data-version=\"1786326828\" data-responsive=\"1\" \/><\/p>\n<p id=\"caption-attachment-1153073\" class=\"wp-caption-text\">Australian couples earning two average wages could lose an estimated $92,500 in borrowing power after four rate rises, even as home prices fall.<\/p>\n<\/div>\n<p>Falling home prices should be good news for buyers, but a brutal borrowing-power squeeze means many could still be worse off. See the cities facing the biggest falls.<\/p>\n<p>Australian couples each earning the average wage could have almost $100,000 wiped from their homebuying budgets this year, even as property prices fall by tens of thousands of dollars.<\/p>\n<p>Canstar analysis shows three RBA rate rises this year have already cut the estimated maximum borrowing capacity of such a couple by $70,700.<br \/>RELATED: <a href=\"https:\/\/www.heraldsun.com.au\/real-estate\/victoria\/melbourne\/anonymous-couple-leases-st-kilda-block-for-1\/news-story\/0ec6bf7ecacdae519eba27f68c6dbc63?campaignType=external&amp;campaignChannel=syndication&amp;campaignName=ncacont&amp;campaignContent=&amp;campaignSource=herald_sun&amp;campaignPlacement=article\" target=\"_blank\" rel=\"noopener\">Mystery couple&rsquo;s $1 rent for homeless teens<\/a><a href=\"https:\/\/www.heraldsun.com.au\/real-estate\/victoria\/melbourne\/melbourne-buyers-flood-back-for-strongest-auction-weekend-in-months\/news-story\/06cc168cc4d629de4f76d60b1d4953cf?campaignType=external&amp;campaignChannel=syndication&amp;campaignName=ncacont&amp;campaignContent=&amp;campaignSource=herald_sun&amp;campaignPlacement=article\" target=\"_blank\" rel=\"noopener\">&lsquo;Market was dead&rsquo;: Melb auction crowds surge<\/a><\/p>\n<p><a href=\"https:\/\/www.heraldsun.com.au\/real-estate\/victoria\/melbourne\/japanese-corporate-giants-move-on-melbourne-to-fund-housing-fix\/news-story\/d3826d123ea8086800584b9240e5e875?campaignType=external&amp;campaignChannel=syndication&amp;campaignName=ncacont&amp;campaignContent=&amp;campaignSource=herald_sun&amp;campaignPlacement=article\" target=\"_blank\" rel=\"noopener\">Japanese cash rescues Melb housing market<\/a><\/p>\n<p id=\"U08563180232aLE\">\n<div class=\"video-container default\">\n<div class=\"video-padding\">\n    <video data-video-id=\"6391431000112\" data-account=\"4342645250001\" data-player=\"default\" data-curated-player=\"dhbyhNutH\" data-embed=\"default\" data-application-id=\"\" id=\"6391431000112-89\" class=\"video-js\" controls=\"controls\"><br \/>\n    <\/video><\/p>\n<p>(function(videojs) {<br \/>\nvar videoId = &#8220;6391431000112-89&#8221;;<br \/>\nvar video = videojs(videoId);<br \/>\nvar globalId = &#8220;iris_6391431000112_89&#8221;;<br \/>\nvideo.pluginDev(videojs.mergeOptions({}, {<br \/>\n    start_up_next: false,<br \/>\n    end_up_next: false,<br \/>\n    global: globalId,<br \/>\n    ssl: true,<br \/>\n    thumbs_down: false,<br \/>\n    thumbs_up: false<br \/>\n}));<br \/>\n})(window.videojs);<\/p>\n<p>(function(videojs) {<br \/>\nvar videoId = &#8220;6391431000112-89&#8243;;<br \/>\nvar durationElement = document.createElement(&#8216;div&#8217;);<br \/>\ndurationElement.className=&#8221;vjs-overlay-duration&#8221;;<br \/>\nvar durationFragment = document.createDocumentFragment();<br \/>\ndurationFragment.appendChild(durationElement);<\/p>\n<p>var video = videojs(videoId);<br \/>\nvideo.overlay({<br \/>\n    overlays: [{<br \/>\n    align: &#8216;bottom&#8217;,<br \/>\n    content: durationFragment,<br \/>\n    showBackground: false,<br \/>\n    start: &#8216;loadstart&#8217;,<br \/>\n    end: &#8216;play&#8217;<br \/>\n    }]<br \/>\n});<br \/>\nvideo.on(&#8216;loadstart&#8217;, updateVideoDurationOverlay);<br \/>\nvideo.ready(function() {<br \/>\n    var isOverlayActive = true;<br \/>\n    video.on(&#8216;play&#8217;, function() {<br \/>\n    if (isOverlayActive) {<br \/>\n        isOverlayActive = false;<br \/>\n        video.overlay({<br \/>\n        overlays: []<br \/>\n        });<br \/>\n    }<br \/>\n    });<br \/>\n    updateVideoDurationOverlay();<br \/>\n});<\/p>\n<p>function updateVideoDurationOverlay() {<br \/>\n    var myPlayer = this;<br \/>\n    if (myPlayer.mediainfo &amp;&amp; myPlayer.mediainfo.duration) {<br \/>\n    var duration = secondsToMMSS(myPlayer.mediainfo.duration);<br \/>\n    durationElement.textContent = duration;<br \/>\n    }<br \/>\n}<br \/>\nfunction secondsToMMSS(totalSeconds) {<br \/>\n    var minutes = Math.floor((totalSeconds) \/ 60);<br \/>\n    var seconds = totalSeconds &#8211; (minutes * 60);<br \/>\n    \/\/ remove any decimals<br \/>\n    seconds = Math.round(seconds);<\/p>\n<p>    var result = minutes + &#8220;:&#8221; + (seconds &lt; 10 ? &quot;0&quot; + seconds : seconds);<br \/>\n    return result;<br \/>\n}<br \/>\n})(window.videojs);<\/p>\n<\/div>\n<div class=\"related-videos-container\" data-video-id=\"6391431000112\" data-video-container-id=\"6391431000112-89\" data-iris-global-id=\"iris_6391431000112_89\"><\/div>\n<\/div>\n<p>A fourth increase would take the reduction to $92,500 compared with the start of the year.<\/p>\n<p>For a single buyer earning the average wage, the estimated hit has already reached $35,400 and would rise to $46,300 after another increase.<\/p>\n<p>The figures come ahead of the RBA board&rsquo;s next cash rate decision on Tuesday, with another rise threatening to further squeeze how much homebuyers can borrow.<\/p>\n<p>It creates a cruel catch for would-be homeowners hoping falling property prices will make it easier to buy.<\/p>\n<p>NAB&rsquo;s latest forecasts indicate house prices could fall further between August and December in Sydney, Melbourne, Brisbane, Perth and Adelaide.<\/p>\n<p>Canstar calculations using Cotality data show Sydney&rsquo;s median house price could shed another $67,284 by the end of 2026, taking it to about $1.462m.<\/p>\n<p>That would amount to a $162,447 fall across the full calendar year.<\/p>\n<p>Melbourne&rsquo;s median house price could lose another $30,748 by December to $905,780, taking its estimated full-year fall to $89,583.<\/p>\n<p>Adelaide could lose another $30,754 from current levels, Brisbane $28,380 and Perth $17,200.<\/p>\n<p>But Brisbane, Perth and Adelaide would still finish the year above where they started after price growth earlier in 2026.<\/p>\n<p>Hobart was the exception among the capitals covered by the analysis, with its median house price forecast to rise another $2095 by the end of the year.<\/p>\n<div id=\"attachment_1153068\" style=\"width: 1290px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1153068\" src=\"https:\/\/www.realestate.com.au\/news\/wp-content\/uploads\/2026\/08\/capi_4d65653480bde9cb5b2a20e39156d4e3_48395c127fee9c1fa130ed29a0293fd3.jpeg\" alt=\"\" data-capiid=\"48395c127fee9c1fa130ed29a0293fd3\" width=\"1280\" height=\"720\" class=\"size-full wp-post-1153075 wp-image-1153068\"><\/p>\n<p id=\"caption-attachment-1153068\" class=\"wp-caption-text\">Canstar Data Insights director Sally Tindall. Picture: supplied. NSW real estate<\/p>\n<\/div>\n<p>Canstar.com.au data insights director Sally Tindall said falling prices did not automatically make homes more affordable.<\/p>\n<p>&ldquo;For would-be buyers, this is shaping up to be a classic case of one step forward, two steps back,&rdquo; Ms Tindall said.<\/p>\n<p>&ldquo;The challenge for buyers is that a cheaper price tag doesn&rsquo;t necessarily mean a more affordable home if your borrowing capacity has been cut at the same time.<\/p>\n<p>&ldquo;Another rate hike, should one eventuate this year, would tighten the screws even further.&rdquo;<\/p>\n<div id=\"attachment_1153069\" style=\"width: 1290px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1153069\" src=\"https:\/\/www.realestate.com.au\/news\/wp-content\/uploads\/2026\/08\/capi_4d65653480bde9cb5b2a20e39156d4e3_8f9a5475ec8ea2491486e42620da1c29.jpeg\" alt=\"\" data-capiid=\"8f9a5475ec8ea2491486e42620da1c29\" width=\"1280\" height=\"720\" class=\"size-full wp-post-1153075 wp-image-1153069\"><\/p>\n<p id=\"caption-attachment-1153069\" class=\"wp-caption-text\">BANK CLOSURE: The NAB Sawtell branch will close its doors next month as more customers make the switch to internet and mobile services.Coffs Harbour, October 24<\/p>\n<\/div>\n<p>Ms Tindall said recent buyers with little equity could also be exposed if NAB&rsquo;s forecasts were realised.<\/p>\n<p>&ldquo;If NAB&rsquo;s forecast plays out across house prices, estimates show a median-priced house in Sydney could fall by more than $160,000 over the 12 months to December this year,&rdquo; she said.<\/p>\n<p>&ldquo;That&rsquo;s a tough pill to swallow for homeowners who bought at the peak with next to no buffer. Negative equity is a very real prospect for these borrowers.&rdquo;<\/p>\n<p>Frame Finance director and mortgage broker Imogen Alexy said buyers were increasingly splitting into two camps as borrowing capacity fell.<\/p>\n<p>&ldquo;There&rsquo;s a really big divide,&rdquo; Ms Alexy said.<\/p>\n<p>She said losing $70,000-$90,000 in borrowing power could mean staying in a preferred area but sacrificing a bedroom, outdoor space or overall home size, or moving further away to find something affordable.<\/p>\n<p>&ldquo;Either way, you have to be prepared to make a sacrifice,&rdquo; she said.<\/p>\n<div id=\"attachment_1153070\" style=\"width: 1290px\" class=\"wp-caption alignnone\"><img decoding=\"async\" width=\"1280\" height=\"720\" data-public-id=\"news-lifestyle-content-assets\/wp-content\/production\/capi_4d65653480bde9cb5b2a20e39156d4e3_cbea24a3c094b9649665b602020ae7ad.jpeg\" loading=\"lazy\" aria-describedby=\"caption-attachment-1153070\" src=\"https:\/\/dam-assets.au.reastatic.net\/images\/w_1280,h_720\/v1786326839\/news-lifestyle-content-assets\/wp-content\/production\/capi_4d65653480bde9cb5b2a20e39156d4e3_cbea24a3c094b9649665b602020ae7ad\/capi_4d65653480bde9cb5b2a20e39156d4e3_cbea24a3c094b9649665b602020ae7ad.jpeg?_i=AA\" alt=\"\" data-capiid=\"cbea24a3c094b9649665b602020ae7ad\" class=\"size-full wp-post-1153075 wp-image-1153070\" data-format=\"jpeg\" data-transformations=\"\" data-version=\"1786326839\" data-responsive=\"1\" \/><\/p>\n<p id=\"caption-attachment-1153070\" class=\"wp-caption-text\">Frame Finance director and principal broker Imogen Alexy &ndash; for Herald Sun Real Estate<\/p>\n<\/div>\n<p>Ms Alexy said some buyers who could comfortably afford their preferred type of property six months ago could no longer do so.<\/p>\n<p>Others were delaying purchases in the hope prices would fall further, but another rate rise could leave them with less borrowing power despite having saved a larger deposit.<\/p>\n<p>She said some people who spent another six to 12 months accumulating savings were returning to brokers to discover higher rates had effectively wiped out the benefit.<\/p>\n<p>&ldquo;All of those savings are essentially nullified and they&rsquo;re back to square one,&rdquo; Ms Alexy said.<\/p>\n<p>&ldquo;That&rsquo;s a really tough conversation to have.&rdquo;<\/p>\n<div id=\"attachment_1153071\" style=\"width: 1290px\" class=\"wp-caption alignnone\"><img decoding=\"async\" width=\"1280\" height=\"720\" data-public-id=\"news-lifestyle-content-assets\/wp-content\/production\/capi_4d65653480bde9cb5b2a20e39156d4e3_c317c35fce5666e6979cf549b353c96f.jpeg\" loading=\"lazy\" aria-describedby=\"caption-attachment-1153071\" src=\"https:\/\/dam-assets.au.reastatic.net\/images\/w_1280,h_720\/v1786326835\/news-lifestyle-content-assets\/wp-content\/production\/capi_4d65653480bde9cb5b2a20e39156d4e3_c317c35fce5666e6979cf549b353c96f\/capi_4d65653480bde9cb5b2a20e39156d4e3_c317c35fce5666e6979cf549b353c96f.jpeg?_i=AA\" alt=\"\" data-capiid=\"c317c35fce5666e6979cf549b353c96f\" class=\"size-full wp-post-1153075 wp-image-1153071\" data-format=\"jpeg\" data-transformations=\"\" data-version=\"1786326835\" data-responsive=\"1\" \/><\/p>\n<p id=\"caption-attachment-1153071\" class=\"wp-caption-text\">Property Investment Professionals of Australia chair Cate Bakos said the research provided a crucial counter-narrative to the speculative behaviour often seen in the market.<\/p>\n<\/div>\n<p>Property Investment Professionals of Australia chair Cate Bakos said first-home buyers were not automatically better off simply because property values were falling.<\/p>\n<p>&ldquo;If borrowing capacity falls at a faster rate than house prices are falling, then obviously the outcome for a buyer is negative,&rdquo; Ms Bakos said.<\/p>\n<p>She said buyers with stronger incomes and enough serviceability to comfortably secure the loan they needed were better placed to take advantage of weaker prices.<\/p>\n<p>Others could be pushed from houses into units or forced to search further from major cities as their budgets contracted.<\/p>\n<p>Ms Bakos said recent low-deposit buyers should not necessarily panic about falling valuations if they planned to remain in their homes.<\/p>\n<p>&ldquo;Negative equity only bites if you crystallise a loss,&rdquo; she said.<\/p>\n<p>&ldquo;If they&rsquo;re making a decision to sell, then obviously that will be a blow for them, but it doesn&rsquo;t really matter what your property&rsquo;s worth if it&rsquo;s just a value on paper and you&rsquo;re staying put.&rdquo;<\/p>\n<div id=\"attachment_1153072\" style=\"width: 1290px\" class=\"wp-caption alignnone\"><img decoding=\"async\" width=\"1280\" height=\"720\" data-public-id=\"news-lifestyle-content-assets\/wp-content\/production\/capi_4d65653480bde9cb5b2a20e39156d4e3_585010ed5a4fbbf310e305aaa47a1986.jpeg\" loading=\"lazy\" aria-describedby=\"caption-attachment-1153072\" src=\"https:\/\/dam-assets.au.reastatic.net\/images\/w_1280,h_720\/v1786326832\/news-lifestyle-content-assets\/wp-content\/production\/capi_4d65653480bde9cb5b2a20e39156d4e3_585010ed5a4fbbf310e305aaa47a1986\/capi_4d65653480bde9cb5b2a20e39156d4e3_585010ed5a4fbbf310e305aaa47a1986.jpeg?_i=AA\" alt=\"\" data-capiid=\"585010ed5a4fbbf310e305aaa47a1986\" class=\"size-full wp-post-1153075 wp-image-1153072\" data-format=\"jpeg\" data-transformations=\"\" data-version=\"1786326832\" data-responsive=\"1\" \/><\/p>\n<p id=\"caption-attachment-1153072\" class=\"wp-caption-text\">A real estate For Sale sign on a property in East Toowoomba, house for sale, Thursday, December 21, 2017.<\/p>\n<\/div>\n<p>Despite the gloomy outlook, Ms Bakos warned buyers with the financial capacity to purchase against waiting indefinitely for prices to fall further.<\/p>\n<p>&ldquo;If you&rsquo;ve got the capacity to buy a property that&rsquo;s right for you now, standing back and adopting a wait-and-see approach is not what I&rsquo;d recommend,&rdquo; she said.<\/p>\n<p>&ldquo;We&rsquo;re going to have a recovery and people will be sad that they&rsquo;ve missed the boat.&rdquo;<\/p>\n<p>She said current conditions could favour purchasers, but only those financially capable of acting on them.<\/p>\n<p>&ldquo;It&rsquo;s a buyer&rsquo;s market, but you can only take advantage of it if you&rsquo;ve got the capacity to move forward,&rdquo; Ms Bakos said.<\/p>\n<hr>\n<p>Sign up to the Herald Sun Weekly Real Estate Update. Click <a href=\"https:\/\/www.newsletters.news.com.au\/heraldsun\" title=\"www.newsletters.news.com.au\">here <\/a>to get the latest Victorian property market news delivered direct to your inbox.<\/p>\n<p>MORE: <a href=\"https:\/\/www.heraldsun.com.au\/real-estate\/victoria\/melbourne\/simple-budget-secrets-young-family-uses-to-save-money\/news-story\/ebdd7544155704a7694bef0c1399d81a?campaignType=external&amp;campaignChannel=syndication&amp;campaignName=ncacont&amp;campaignContent=&amp;campaignSource=herald_sun&amp;campaignPlacement=article\" target=\"_blank\" rel=\"noopener\">Melb couple&rsquo;s &lsquo;nerdy&rsquo; trick to save money<\/a><a href=\"https:\/\/www.heraldsun.com.au\/real-estate\/national\/the-block\/block-judges-issue-brutal-warning-to-new-contestants\/news-story\/32115d9c0b32721f4ea31e1f47912c5c?campaignType=external&amp;campaignChannel=syndication&amp;campaignName=ncacont&amp;campaignContent=&amp;campaignSource=herald_sun&amp;campaignPlacement=article\" target=\"_blank\" rel=\"noopener\">Critical error will ruin Block stars<\/a><\/p>\n<p><a href=\"https:\/\/www.heraldsun.com.au\/real-estate\/victoria\/melbourne\/eddie-perfect-offloads-mornington-peninsula-secret-retreat\/news-story\/ca26c692e728ae475b060a1d91f2eb21?campaignType=external&amp;campaignChannel=syndication&amp;campaignName=ncacont&amp;campaignContent=&amp;campaignSource=herald_sun&amp;campaignPlacement=article\" target=\"_blank\" rel=\"noopener\">Beetlejuice star Eddie Perfect sells secret ferret hideaway<\/a><\/p>\n<p>david.bonaddio@news.com.au<\/p>\n<p>The post <a href=\"https:\/\/www.realestate.com.au\/news\/rate-rises-wipe-100000-from-australian-homebuying-budgets\/\">Rate rises wipe $100,000 from Australian homebuying budgets<\/a> appeared first on <a href=\"https:\/\/www.realestate.com.au\">realestate.com.au<\/a>.<\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>Australian couples earning two average wages could lose an estimated $92,500 in borrowing power after four rate rises, even as home prices fall. Falling home prices should be good news for buyers, but a brutal borrowing-power squeeze means many could still be worse off. See the cities facing the biggest falls. Australian couples each earning [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7035995,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[88],"tags":[9128,44067,22052,1485,23343,11479],"dealstore":[],"offerexpiration":[],"class_list":["post-7035994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-australian","tag-budgets","tag-homebuying","tag-rate","tag-rises","tag-wipe"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rate rises wipe $100,000 from Australian homebuying budgets - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=7035994\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rate rises wipe $100,000 from Australian homebuying budgets - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Australian couples earning two average wages could lose an estimated $92,500 in borrowing power after four rate rises, even as home prices fall. Falling home prices should be good news for buyers, but a brutal borrowing-power squeeze means many could still be worse off. See the cities facing the biggest falls. 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