Don’t Wait for Interest Rates to Drop

There’s this idea floating around, that you should wait to buy a home until interest rates come down.

And while that might sound like a good idea because it would mean your repayments are less, in the current market, that thinking could seriously backfire.

Here’s what’s really happening...

Pre-Approvals Are Rising Fast

We’re seeing a spike in new pre-approvals across the board, banks and lenders are processing higher volumes, which tells us one thing, more people are interested in buying a home. 

The more pre-approvals, the more buyers with an intent to buy as they know what they can afford. 

Online Calculators 

Sites like Aussie Home Loans are seeing a surge in people using online calculators, loan comparison tools, and pre-approval forms.

What does this mean for you?
It’s never been easier for people to feel “finance-ready,” and a lot of them are acting on that sense of momentum. 

It’s Going to Get More Competitive

With more buyers in the ring, expect more competition at every open home, especially in areas with limited stock or strong demand. This is usually the under $1 million mark especially in markets where there are investors. 

And if you’re waiting for rates to come down?

You might be stepping into a red-hot market later, where you’re competing with everyone else who had the same idea.

Interest Rates Will Come Down, But Here’s Why You Shouldn’t Wait?

Yes, the RBA is tipped to cut rates by as much as 1.5% over the next 12–18 months.
That’s great news in one sense, you’ll likely be able to refinance into a lower rate in the future.

But here's the real kicker, as borrowing power goes up… so do prices.

When buyers can borrow more, they spend more.

Sellers know this and they price accordingly.

So if you’re thinking, “I’ll wait for a rate drop,” please please please understand this,

By the time rates drop, the house you want will likely cost more.
And you’ll be fighting harder to get it.

Most People Waste Their Pre-Approval Window

Around 65% - 70% of buyers let their pre-approval lapse.

Now this isn’t from a lack of trying, a lot of the people miss out on properties because they don’t know how to assess the market, and how would you know what things are worth, no one teaches you (PS this is exactly what we do here at First Home Club) 

Understand what properties are worth is a crucial part of the process and something you can upskill yourself on. 

A 1.5% Rate Drop, What It Actually Means

Let’s say the average buyer’s borrowing power goes up by $70K–$100K depending on their income.

That means…

• You’re now competing with more buyers who have larger budgets
  

• Entry-level homes in good areas will suddenly see price jumps that match this increase in budget.
  

• Even though you have more money to spend, you could be priced out of a market very quickly.

Final Take

Interest rates dropping doesn’t make homes cheaper, it makes competition hotter.

The smart buyers?

They get in before the drop, while there’s still room to move and negotiate.

So if you're finance-ready, or close to it, don’t hit pause.
Because buying now might mean securing your dream home… before someone else can out-borrow you.

You're expected to do this on your own… until now.
That’s why we built First Home Club, to make sure you’re not just in the game, but playing it smart.

Ready to take the next step? Join the Club