RBA Rate Rise Announced Today: What It Means for Illawarra and South Coast Homeowners

This afternoon, the Reserve Bank announced a widely expected 0.25% increase to the cash rate, lifting it to 3.85%.

For homeowners, buyers, and anyone watching the property market closely, rate changes can feel unsettling. But the reality is, a rate rise doesn’t mean panic, it means preparation.

For a mortgage close to the Illawarra and South Coast average sale price of $900,000, this increase could mean an additional around $140-$160 per month in repayments for many households.

Here’s what today’s announcement could mean for you, and the smart steps to take next.

1. Your Mortgage Repayments May Increase

For most homeowners on variable rates, today’s rise could lead to higher monthly repayments once lenders pass the change on.

Even a small increase can add up over a year, so it’s worth reviewing your budget early and understanding what your new repayments may look like.

Tip: Reach out to your lender or broker this week to clarify your position.

2. Borrowing Power Could Shift for Buyers

If you’re looking to purchase soon, rate rises may slightly reduce your borrowing capacity.

That doesn’t mean buyers disappear, but it does mean many will adjust expectations, budgets, or timelines.

In markets like the Illawarra and South Coast, lifestyle-driven demand remains strong, but buyers are becoming more calculated.

3. Property Market Conditions May Stabilise

Higher rates often cool rapid price growth, which can create a more balanced market.

For sellers, well presented homes in premium locations will always attract attention, but pricing strategy becomes more important than ever.

For buyers, this can open up opportunity, with less competition in some segments.

4. Now Is the Time to Review Your Home Equity

If you’ve owned your home for a few years, chances are you’ve built equity, even with recent market shifts.

That equity can provide flexibility, whether you’re renovating, upgrading, investing, or simply wanting a clearer financial buffer.

Tip: A local property appraisal can help you understand your current position.

5. Don’t Make Big Decisions Based on Headlines

Rate rises make news, but property decisions should always be based on your long term goals, not short term fear.

Real estate remains a long game, and smart homeowners stay informed, not reactive.

Wondering What This Means for Your Home?

For lending or repayment advice, it’s best to speak with your broker or financial advisor. But when it comes to understanding the Illawarra and South Coast property market, our team is here to help.

Get in touch for a confidential chat.