Adelaide Timbrell

And so for the first time, really next year is when we'll see people's buying power, the amount of things that people can buy with a paycheck really start to accelerate.

And that's the year we're going to see that the most.

And it's also the year we're going to see the cash rate continue to rise.

That's right.

So, more first home buyers than ever will be able to apply for that 5% deposit through the next 18 months.

And that's going to really help certain people get into the property market, which is, of course, very expensive and deposits are the biggest barrier really for most households.

However, it's not going to be enough to keep housing prices afloat because for every person who gets that 5% deposit, there's, you know, 9 or 10 people who are

looking to purchase a home and have reduced borrowing capacity because of the higher cash rate.

So when you go to ask how much you can borrow at any bank, they'll have a look at your finances and what you spend and make sure that you can get a loan that's three percentage points above the advertised rate.

When the cash rate goes up, the advertised rate goes up, which means the amount you have to prove you can spend on a mortgage goes up.

which means the amount you can borrow goes down and the amount you can bid at the auction goes down.

And so even though those first home buyers will really, you know, it will help them and it will help certain parts of the housing market overall, it's that reduced borrowing capacity that we'll see elsewhere that will push housing prices down.