The RBA cash rate is 4.35%. Here's the number that actually matters.

The Reserve Bank of Australia’s cash rate target is currently 4.35%, following its decision on 12 August 2026. The next Board meeting is scheduled for 29 September 2026. Between now and then you will see a lot of commentary about whether rates go up, down or stay put.

Here is the thing most people miss: the headline rate is not the number that decides your property plan. Your borrowing capacity is.

Why borrowing capacity comes first

Before you look at a single listing, the first question a good plan answers is “how much can I actually borrow, today, with my real income and expenses?” That number sets your price range. Your price range sets your suburb list. Your suburb list sets your strategy. Everything downstream depends on it.

Lenders do not assess you at the rate you’ll pay. They assess you at a higher “buffer” rate to make sure you could still make repayments if rates rose. That is why a rate move can change what you can borrow before it changes what you actually pay each month — and why two people on the same income can be approved for very different amounts depending on their expenses, existing debts and the lender’s policy.

What a rate decision changes — and what it doesn’t

If the cash rate moves on 29 September, three things can shift:

1. Your repayments on a variable loan, usually within a few weeks.
2. Your borrowing capacity, because the lender’s assessment rate moves with it.
3. Market sentiment, which affects how many buyers turn up to the same open home you do.

What a rate decision does not change is your starting position: what you earn, what you spend, what you owe and what you are trying to achieve. Those are the four numbers that a plan is built on, and they are entirely in your control to know precisely.

What we do at TNC Group

Step one with every TNC client is a borrowing-capacity check with a broker — before we look at property. Not an online calculator, not a guess. A real assessment against current lender policy, so that when we start the property search we are searching in the right price band and the right markets for your goal.

Then we follow the same method every time: Strategise → Plan → Execute → Review → Optimise → Repeat.

Next step

If you want to know your real number before the next RBA decision, book a free 15-minute call: https://leads.leads.tncgroup.com.au/widget/booking/VIiJOVAo7mhEsE3xLNrb

Source: Reserve Bank of Australia, cash rate target as at 12 August 2026 (rba.gov.au).

General information only — not financial, legal or tax advice. Speak to your own qualified professional about your circumstances.