Why Getting Pre-Approved Now Could Save You Later
The Calm Before Another Surge?
Why Getting Pre-Approved Now Could Save You Later.
Australia’s property market has been holding its breath but that could be about to change. With talk of a possible RBA rate cut next month, combined with the First Home Owner Scheme opening new doors for buyers, conditions are lining up for what could be another mini-surge in housing demand. And as we’ve seen before, when more buyers rush in, prices follow.
That’s why being finance-ready with a pre-approval could make all the difference in the months ahead.
Why Pre-Approval Matters More Than Ever
Getting pre-approved isn’t just a formality it’s a competitive advantage. When interest rates shift or demand spikes, the best properties move fast, and so do the buyers who are prepared.
With a pre-approval in place, you can:
- Know your borrowing limit upfront and shop with confidence.
- Move quickly when the right property appears and others even start their paperwork.
- Negotiate from a stronger position with sellers who prefer buyers ready to settle.
In a tightening or rapidly changing market, the difference between “thinking about it” and “ready to go” can literally be the price of a house.
Case Study: Confident Bidding with Pre-Approval
Sam (29) and Chloe (27) wanted to buy their first home in early 2026.
Their Challenge: They weren’t sure how much they could borrow and worried about missing opportunities in a competitive suburb.
What Happened: Loren, Ledgersmith Mortgage Specialist, assessed their borrowing capacity, helped tidy up their savings history, and secured a pre-approval with a flexible lender. Just three weeks later, they found a property at auction. Because their pre-approval was ready, their offer was accepted with confidence from the vendor.
Outcome: Sam and Chloe purchased their first home stress-free, with the reassurance that their finance was already locked in.
The First Home Owner Scheme Effect
Government incentives are designed to help buyers get into the market but they can also inflate demand and push up prices, particularly in the entry-level range.
With the latest First Home Owner Scheme providing access to lower-deposit loans and grants, more first-timers are returning to the market. That’s great for confidence but it also means more competition for the same pool of affordable properties. If you’ve been waiting for the right time to buy, it’s worth remembering: once everyone jumps in, the bargains disappear fast.
Could an RBA Rate Cut Spark the Next Rush?
The RBA's next move could be pivotal. After months of holding rates steady at 3.60%, analysts say there’s a real chance of a cut in November, and in December if inflation continues easing. A rate cut would make borrowing slightly cheaper and that could quickly reignite buyer activity.
Every 0.25% drop in interest rates can lift borrowing power by thousands of dollars, giving buyers more room to spend and potentially driving prices higher. So while cheaper finance is good news, it’s best to be ready before it happens.
What You Can Do Now
If you’re thinking about buying or even just exploring your options now’s the time to prepare:
- Get your pre-approval organised.
- Review your budget and loan structure to understand your borrowing comfort zone.
- Talk to your accountant or financial planner about timing your purchase and maximising your position ahead of any market movement.
Ledgersmith Insight
We’re in a rare window interest rates are steady, incentives are flowing, and a potential rate cut could be just around the corner. For buyers who plan ahead, the next few months could bring real opportunity. For those who wait, it could bring higher prices.
Now is the time to get prepared, stay informed, and act strategically. If you’d like to review your finances, borrowing capacity or pre-approval options, the Ledgersmith team is here to help you move with confidence.
Get ahead of everyone else in the market. Have your finance ready to go so you can snap up that property you love quickly!
Contact us for an obligation free chat
Loren Marsh - Mortgage Specialist
M: 0437 460 035
E: loren.marsh@ledgersmith.com.au
