<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>Exclusive</span></strong><span>: First homebuyers in Australia are scrambling to lock in property purchases before their borrowing power falls off a cliff </span><a href="https://www.9news.com.au/finance/interest-rates-reserve-bank-anz-cash-rate-prediction/f9dc2991-73c4-4483-982f-a29e70df4d8d" rel="" target="_blank" title="ahead of the predicted triple-dip cash rate hike this year."><span>ahead of the predicted triple-dip cash rate hike this year.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Reserve Bank of Australia (RBA)'s interest rate decision today could spell doom for homebuyers nearing the maximum of their borrowing capacity, particularly in six of the seven capital cities where median house prices have edged above $1 million.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Sydney man Max Crowe, 25, settled on his first property in Newcastle last week ahead of today's RBA meeting.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/interest-rates-rba-decision-artificial-intelligence-tools-predict-more-cash-rate-hikes/652a4c7b-5ab8-490a-b85e-6f076901379e" rel="" target="_blank" title="AI predictions spell bad news for mortgage holders"><strong><span>AI predictions spell bad news for mortgage holders</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><strong><span>Do you have a story? Contact</span></strong></em><span> </span><strong><em><span>reporter April Glover at</span></em></strong><span> </span><a href="mailto:april.glover@nine.com.au" target="" title="april.glover@nine.com.au"><em><strong><span>april.glover@nine.com.au</span></strong></em></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Crowe was already on the extreme end of his borrowing capacity when predictions of a double rate hike blow in March and May threatened to derail his property search.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The rate rise in early February raised the cash rate target by 25 basis points to 3.85 per cent, meaning it would be an unusual triple blow for mortgage holders.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/first-home-buyers-australia-rush-protect-borrowing-capacity-before-predicted-interest-rate-hikes/a938f241-58b0-43b4-bdd9-00e1b6832fc9" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Crowe worried that, if he didn't act fast, his pre-approval would expire and his limit would decrease.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I was feeling like I needed to get in before it affected my purchasing power and potentially rendered me out of the game for buying this place in Newcastle," Crowe told </span><a href="https://www.nine.com.au/" rel="" target="_blank" title="Nine.com.au."><span>Nine.com.au.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The advice I was given was there are a lot of first-time buyer applications with the banks at the moment too... it gave me the sense that there are a lot of people moving at the moment and I wanted to move with them."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Crowe set his sights on Newcastle after discovering he could only feasibly afford a studio apartment in his home city of Sydney.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He was able to stretch his finances to settle on a two-bedroom apartment in the coastal city, located about 160 kilometres from the NSW capital.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Crowe took advantage of the </span><a href="https://www.9news.com.au/national/first-home-buyers-five-per-cent-deposit-scheme-launches-federal-government-backlash-house-price-rises/bcafebd4-6c37-464e-af62-f07acd1c580b" rel="" target="_blank" title="federal government's five per cent deposit scheme"><span>federal government's five per cent deposit scheme</span></a><span>, meaning he didn't need to save for 10 more years to cough up a 20 per cent deposit.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While this eased the pressure on his bank account, the Sydneysider said the imminent cash decision was hanging over his head.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"For me, it just wasn't even an option to wait until later in the year," he said, adding that it felt like it was "now or never" to get into the property market.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The next hurdle is ensuring the cash rate doesn't make his new home loan unmanageable.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I'm now hoping that I'm not going to be pushed too far to the extreme with any future rate rises," he added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/how-to-choose-9news-as-your-preferred-source-in-google/7e8c11bd-1b8b-4e7f-8fff-154231ab5d16" target="_blank"><strong><span>How to Choose 9News as your preferred source in Google's Top Stories</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Finance Brokers Association of Australia (FBAA) interim chief executive Peter White said Crowe's fear was not unfounded – and he expects more homebuyers will preemptively lock in their contracts ahead of May's RBA decision.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Lenders have the right under all lending contracts to review and reassess if they believe that a person's circumstances have changed adversely," White said</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If rates go up again, not necessarily the first one, but if there is a bigger hit not too far away, that could have a serious impact on somebody's ability to service a loan if they're borderline.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"And so, the bank could turn around and say, 'We've reassessed this, sorry, but we can no longer assist'. They have the right to do that."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/pauline-hanson-policies-stance-on-immigration-housing-voting-record-explained/1a21d57d-cddd-4ba5-b1ce-0b564e205b79" rel="" target="" title="One Nation has surged even further. But what does Hanson really stand for?"><strong><span>One Nation has surged even further. But what does Hanson really stand for?</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Loan pre-approvals generally last for 90 days and are a conditional estimate of your borrowing power.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Market fluctuations like rate rises and changes to your own financial situation can impact your loan approval.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>White said the upcoming cash rates will sting hardest for buyers flirting with the very limit of their buying capacity.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This isn't unusual for major cities like Sydney, where the median house price is now over $1.7 million.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's going to impact their ability to service the loan and to get into the marketplace," White added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span></span><em><span>The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>