What the April rate move means for your home loan
The RBA raised the cash rate 25 basis points to 4.10% at its March 2026 meeting, reversing part of the relief delivered through 2025. For variable rate borrowers, repayments are going up again. For those sitting on fixed rates or thinking about a move, the picture is more nuanced.
What just happened
The March decision was the second hike of 2026, following the move to 3.85% in February. Both decisions reverse cuts delivered through 2025. Inflation picked up materially in the second half of last year and has not eased as quickly as expected. Add to that the ongoing conflict in the Middle East putting upward pressure on global energy prices, and the near-term inflation picture has shifted.
The RBA also flagged that higher prices and prolonged uncertainty could weigh on growth, so the path ahead is unlikely to be straightforward. For variable rate borrowers, this means repayments are increasing again. For those who locked in a fixed rate during 2025, that timing looks favourable in hindsight.
We have seen a noticeable increase in conversations from people thinking through whether to fix now and what the options look like. If that is on your mind, we are happy to talk it through.
What we are seeing in the market
The refinance market is not quite what most people expect right now. Loans written 12 months ago are in many cases priced below what new lending is coming in at, which means the only real reason to switch lenders at the moment is to get an equity release. Beyond that, the better outcome for most clients has been negotiating with their existing lender, whether that is a rate reduction or a cash-out for investment, renovations, or personal use. That is where the bulk of our refinance activity is sitting.
We are also continuing to see movement from owner-occupiers looking to make a move while there is some uncertainty in the market. For the right buyer, that uncertainty creates a window, and we are having more of those conversations than we were six months ago.
Market snapshot
For borrowers, property values matter because they determine your equity position, your LVR, and what lending options are available to you. Below is the latest data from the major capital markets.
| City | Auctions | Clearance | Monthly | Median |
|---|---|---|---|---|
| Melbourne | 1,412 | 64.2% | +0.3% | $854K |
| Sydney | 1,008 | 60.8% | +0.5% | $1,255K |
| Brisbane | 200 | 65.3% | +0.7% | $1,046K |
| Perth | 16 | 66.7% | +0.6% | $987K |
| Adelaide | 131 | 65.4% | +0.7% | $929K |
| Canberra | 89 | 53.0% | +0.2% | $874K |
| Hobart | 1 | n/a | +1.0% | $718K |
Sources: Cotality (week ending 22 Mar 2026), PropTrack Home Price Index (Feb 2026). Auction results are preliminary.
Melbourne's clearance rate has been hovering around the mid-60s for several weeks, which indicates a relatively stable market. For anyone considering a refinance or looking to buy, this level of activity means there is still competition at auction but pricing is not running away. Units have also been outperforming houses in several capital cities recently, which is shifting what borrowers can access at different price points.
Annual price growth
If your property has gained value over the past year, your equity position may have improved. That can change your LVR, open up better rates, or remove the need for LMI on a refinance.
Source: PropTrack Home Price Index, February 2026. Annual change, all dwellings.
Of the capital cities, Melbourne has seen the most measured price growth over the past year at 3.4%. That relative stability has its own advantage - properties here have not run away from buyers the way other markets have, and entry points remain more accessible. If your property has moved upward in value, your LVR has likely improved. Given that markets move in cycles, there is always opportunity to unlock better pricing or remove LMI from the equation on a refinance - worth checking rather than assuming.
What it means for you
If you would like to understand what this rate environment means for your situation - whether your current loan is still competitive, or what your options look like for buying or refinancing right now - we are happy to walk through it with you.
The information in this article is general in nature and does not constitute financial advice. Please consider whether it is appropriate for your circumstances before acting on it.
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