Open home weekend? Do not chase the rate headline

This week, the mortgage market has been noisy.

The RBA cash rate is still high, but some lenders have started cutting selected home loan rates. At the same time, auction clearance rates in several markets remain softer, so

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buyers may feel they have more room to compare.

That sounds like good news.

But before you spend the weekend rushing through open homes, check the basics first.

1. A lower rate does not mean you can automatically borrow more

Lenders still look at income, spending, debts, credit history and repayment ability.

2. Check monthly repayment before falling in love with the property

A small price difference can become a big monthly cash flow difference, especially while living costs stay high.

3. A quieter market does not mean every offer should be low

Less competition can help buyers, but the useful part is knowing your budget limit and negotiation line.

4. Pre-approval matters more than weekend excitement

If borrowing power is not clear, it is easy to be pushed by emotion when a property feels right.

Before your next open inspection, ask yourself:

Can I actually afford this home, or does it just look good today?

If you are buying your first home, review FHOG, borrowing power and repayment first.

If you already have a mortgage, this is also a good time to review your rate and refinance options.

Borrowing Power = what a lender estimates you may be able to borrow.

Pre-Approval = an initial loan assessment before you make an offer.

Open Inspection = a scheduled property viewing, often held on weekends.

*General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.