Interest rate update | Building costs climb 5.7% | EV sales surge
What do your mortgage, a new build, an EV and your next property purchase have in common? The numbers are changing – and knowing what they mean could help you make your next move.
More rate rises could be on the way
Homebuilding costs have jumped 47.7% since 2020
Five things to consider before buying an EV
How to buy a home on a modest income
Rates have already risen sharply this year – and borrowers may want to create some financial breathing room in case they increase further.
The Reserve Bank has increased the cash rate by 0.75 percentage points during 2026 as it tries to reduce trimmed-mean (or ‘core’) inflation to its target range of 2-3%.
With trimmed- mean inflation currently at 3.6%, another rate increase before year-end remains possible.
What to do next
Instead of trying to predict the next move, one option is to focus on something you can control: the gap between what comes in and what goes out each month.
Even a modest buffer can make a difference if repayments rise again.
That could involve directing extra cash into an offset account, reducing another debt or checking whether your current home loan rate remains competitive.
It can also be worth looking beyond the headline rate. Loan features, fees and refinancing costs all affect whether switching stacks up.
Another rate rise may or may not happen, but there’s no need to wait for the RBA to review whether your current home loan is still competitive.
Anyone planning a new build needs to budget for a very different cost environment than existed just a few years ago.
The cost of building a new home has risen another 5.7% over the past year, according to the latest ABS data, as builders pass on higher labour and material costs.
Zoom out further and the shift is even more striking: homebuilding costs are now 47.7% higher than at the start of 2020.
That makes careful planning especially important before signing a building contract.
What to look for
Before committing, look beyond the headline build price.
With build costs significantly higher than a few years ago, even small exclusions from the contract can add up quickly.
Allow room for expenses such as site works, council requirements, landscaping, driveways and upgrades that may not be included in the base contract.
It’s also worth keeping a contingency buffer in case costs change during construction.
Finance works differently too. Construction loans generally release money in stages as the build progresses rather than providing the full amount upfront.
That means the loan structure needs to match the building contract and payment schedule.
Before signing a building contract, get in touch to make sure the finance is ready to support the project from the first progress payment to the last.
Electric vehicles are taking a much bigger share of Australian car sales – but buying one involves a few considerations beyond the sticker price.
New vehicle sales in August were only 0.4% higher than a year earlier, according to VFACTS data.
What changed dramatically was the mix.
Electric vehicles represented 35.4% of new vehicle purchases in August 2026, compared with just 10.7% in August 2025.
Five things to consider before buying an EV
Purchase price. Compare the total cost with equivalent petrol, diesel and hybrid vehicles.
Charging. Think about whether you can charge at home and what installation may cost.
Range. Choose a vehicle that comfortably covers your normal driving patterns.
Running costs. Factor in electricity, insurance, servicing and registration.
Finance. Compare the rate, fees, term and total repayments rather than focusing only on the monthly figure.
An EV’s sticker price tells only part of the story. Compare your car finance options before heading to the dealership so you can weigh up the vehicle’s total cost.
Buying a home on an average income has rarely been harder – which makes compromise and preparation increasingly important.
Housing affordability has fallen to a record low, according to the latest realestate.com.au Housing Affordability Index.
Recent property price falls have provided some relief, but prices remain historically high. Higher interest rates have also reduced how much many households can comfortably borrow.
Home ownership is still possible
So what can buyers with modest incomes do?
Start with the numbers.
Knowing your borrowing capacity and likely repayments can help establish a realistic price range before you start inspecting homes.
Get creative with your property search
Then decide where you can compromise.
That might mean considering a smaller property, an apartment instead of a house or a suburb further out – because reducing the purchase price can have a much bigger impact on repayments than trimming smaller household expenses.
A larger deposit can also reduce the amount you need to borrow, although waiting longer carries its own trade-offs if prices or rents move in the meantime.
The key is to make the property search fit the budget – not stretch the budget to fit a particular property.
Home ownership on a modest income may require some flexibility. Start by working out your borrowing capacity – then you can focus the property search on what’s realistically within reach.
From another possible rate rise to soaring building costs and changing car choices, there’s plenty to weigh up right now. If your plans are changing too, get in touch to talk through your options.