The real issue isn’t just interest rates. It’s affordability, supply and lending policy all at once
When people talk about the property market, most of the focus goes straight to interest rates. And while rates do matter, they are only one part of the picture. What we are seeing right now is a combination of affordability pressure, limited housing supply and lender policy all impacting borrowers at the same time. That is why the conversation should not just be about rate. It should be about strategy.
Here are the three key issues borrowers need to understand right now.
Affordability is still a major challenge
For many buyers, especially first home buyers, the biggest hurdle is still getting into the market.
Saving a deposit is difficult, living costs remain high, and borrowing capacity is not what it once was. But that does not always mean the opportunity is not there. In many cases, it means buyers need to understand their options earlier, whether that is a low deposit strategy, a government scheme, a guarantor, or simply a better plan.
Supply is still keeping pressure on prices
In many parts of the market, there is still not enough quality stock available.
That means even if rates improve, buying does not automatically become easier. Tight supply can continue to support prices and keep competition strong. This is why preparation matters. Buyers who know their position and are ready to act tend to be in a much better position.
Lending policy matters more than most people realise
A lot of people assume borrowing power is just about income and interest rate.
But lender policy, existing debts, living expenses and the way income is assessed can all have a big impact. This is why two borrowers with similar incomes can end up with very different outcomes.
The better questions borrowers need to ask are:
- Can I still borrow what I need?
- Am I structured the right way?
- Is my current lender still the right fit?
- What can I do now to put myself in a better position?
Final thoughts
The real issue in today’s market is not just interest rates. It is affordability, supply and lending policy all happening at once.
That is why strategy matters more than ever.
If you are thinking about buying, refinancing or reviewing your current position, now is a good time to get clear on your options.
At Kredi Home Loans, we help clients look beyond just the interest rate and understand the full picture, so they can move forward with confidence.