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RBA hike: What does it really mean for first-time buyers?
Chuy said the 0.25 percentage point rise to 4.10 per cent was expected, and while it affects borrowing capacity, the impact is not as significant as many assume.
He notes lenders are already assessing borrowers under tighter buffers, effectively resetting borrowing power to similar levels seen around a year ago.
Despite affordability pressures, Chuy says the entry-level market remains highly competitive, with first home buyers, investors, and grant recipients all competing for the same price points.
He points to Melbourne suburbs 20–25 kilometres from the CBD as still offering value, with homes around $700,000 providing strong land and housing appeal.
The pair notes that while higher rates can feel restrictive, they may also create opportunities by reducing competition and improving negotiation conditions for prepared buyers.
Chuy urges buyers to focus on asset selection and avoid overextending financially, highlighting fixed and split loans as tools for managing risk and repayment certainty in a shifting rate environment.
Looking ahead, Chuy says success comes down to strategy over timing, with well-prepared buyers better positioned to navigate changing conditions.
