RBA Raises the Cash Rate to 4.35%: What It Means for Homeowners and Buyers in Griffith

The RBA has raised the cash rate to 4.35%, the third increase in 2026, and we know it’s not what anyone needed to hear right now. We want to give you a straight, local picture of what it actually means, because the Griffith market tells a different story to the national headlines.

First, Some Context: We’ve Been Here Before

In 2024, the cash rate was already at 4.35%. The RBA cut rates three times through 2025, giving households some welcome relief. Now, with inflation picking back up, those cuts have been fully reversed. This isn’t a new high. It’s a return to where we were before the relief came, which doesn’t make it easy, but it is important context.

The RBA’s tone after this decision was also more measured, signalling a cautious, data-dependent approach from here rather than a commitment to further hikes.

What the Headlines Are Getting Wrong

The repayment figures in the media are built on Sydney and Melbourne mortgages, where the average loan sits around $810,000. Griffith’s median house price is around $650,000. The impact here is real, but it’s a different conversation to what city homeowners are facing. And while city markets are softening, Griffith homes are still selling in an average of 33 days at an 88.9% clearance rate. Our market has held firm.

What This Means If You Currently Own a Home

If you’re on a variable rate, the three rises this year add up to around $250 more per month on a $650,000 loan compared to January. That’s significant, and if you haven’t reviewed your home loan recently, now is the time. There is competition between lenders, and a mortgage broker can often find a better rate than what you’re currently on.

Griffith vs the Cities: Why Our Market Is Different

One of the most important things to understand right now is why Griffith’s property market is behaving differently to Sydney and Melbourne, and it comes down to who’s buying here and why.

City markets carry a much higher proportion of investors and speculators. When rates rise, that cohort pulls back quickly, and you see it in falling clearance rates, rising days on market, and softening prices. Sydney and Melbourne are experiencing exactly that right now.

Griffith is largely an owner-occupier market. People buying here are doing so because they live and work in the region, because they want to raise families here, because they value the lifestyle and community that Griffith offers. Those motivations don’t evaporate when the RBA moves. That’s why our clearance rate sits at 88.9% and homes are selling in an average of 33 days, even in a rate environment that has caused city markets to stall.

Stock on market in Griffith also remains very tight. When demand is steady and supply is constrained, that’s what holds values firm. It’s not spin. It’s the basic mechanics of the local market, and right now they’re working in Griffith’s favour.

What This Means If You’re Looking to Buy

We hear you. Borrowing capacity has come down by roughly $36,000 across this year’s three rises, and that’s worth factoring in before you sit down with a lender.

But buying in Griffith is not the same as buying in a city. You’re not competing against deep-pocketed investors or prices that are hundreds of thousands beyond reach. The buyers here are largely local families and owner-occupiers, people buying to live, not to speculate. That makes for a more grounded market even when conditions tighten.

What your money buys in Griffith, the space, the community, the lifestyle, is something most city buyers can’t access at any rate environment. And with stock tight and well-priced properties still moving quickly, waiting for a perfect rate has its own cost.

If you’re unsure where you stand, update your pre-approval, speak to a local broker, and come and talk to us. We know this market and we’re happy to help you work out what’s realistic right now.

We’re Here If You Need to Talk

Whether you own a home here, you’re thinking about buying, or you’re considering a move from the city, we’re always here for an honest conversation.

Get in touch with the SOUL team anytime.

Disclaimer: General information only. Please speak with a qualified financial adviser or mortgage broker about your individual circumstances.