News Corp Australia
First published 21 Feb 2026, 9:00am
A $104 monthly rate hit looms as 1800 homes prepare to go under the hammer across Victoria, testing Melbourne buyers just as auction season ramps up.
Melbourne families are racing the clock with just four weeks until the next potential interest rate rise and the possibility the average family will be paying $104 more a month for a loan.
PropTrack data shows large numbers of sellers are also looking to lock in a price before the next Reserve Bank meeting, with about 1200 homes scheduled for auction across Victoria this weekend, and volumes tipped to rise closer to 1800 next weekend.
A $650,000 loan over 30 years will cost roughly $104 extra a month if the Reserve Bank lifts interest rates by another 0.25 percentage points on March 17, based on the federal government’s MoneySmart mortgage calculator.
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Zaralend director and mortgage broker Stephanie Jordan said while an interest rate rise wouldn’t be welcomed by homeowners, it shouldn’t have a major impact on Melbourne’s property market overall.“When you break it down, that $104 is about $24 a week, roughly three or four coffees,” Ms Jordan said.
“I don’t believe it’s the difference between bidding or not bidding.”
Three takeaway coffees a week or the difference between bidding and walking away? Brokers say the looming $104 mortgage bump won’t stop serious buyers. Picture: Canva / Google Gemini
Zaralend director and mortgage broker Stephanie Jordan says most buyers heading to auction have already secured pre-approval and know their hard limit.
Ms Jordan said lenders typically give 10 days to two weeks’ notice before passing on a rate rise, and most buyers attending auctions have secured pre-approval before raising a paddle.
“If they’ve done their pre-approval properly, they know their hard limit going in,” she said.
PropTrack economist Eleanor Creagh says the surge in listings reflects the usual late-February build rather than panic selling ahead of a potential rate move.
PropTrack economist Eleanor Creagh said the lift in auction volumes reflected the seasonal build into autumn rather than sellers rushing ahead of rate expectations.
“We’re seeing the natural increase that typically occurs in late February and March,” Ms Creagh said.
She said clearance rates had held up despite new listings tracking below the same period last year, which was keeping pressure on available stock.
“It’s more likely to be a gradual market recovery for Melbourne rather than an immediate surge,” she said.
Ray White Victoria and Tasmania chief auctioneer Luke Banitsiotis says the fiercest bidding pressure remains below $950,000, particularly in the $600,000 to $800,000 bracket.
Clearance rates are holding firm despite tight stock, with competition concentrated in Melbourne’s most affordable price bands. Picture: Alan Barber
Ray White Victoria and Tasmania chief auctioneer Luke Banitsiotis said competition was highly concentrated in key price bands.
“Buyer pools aren’t enormous, but the buyers who are active are serious,” Mr Banitsiotis said.
“The fiercest pressure is sitting below the $950,000 mark, particularly in the $600,000 to $800,000 range where first-home buyers are most active.
“Properties under $950,000 are seeing the thickest bidding wars”.
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david.bonaddio@news.com.au
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