Updated 29 September 2026, after the Reserve Bank’s 2.30pm announcement. General information only, not credit advice.
The short version: The Reserve Bank has lifted the cash rate by 0.25 percentage points to 4.60%, its fourth rise this year. If you have a variable home loan, your repayments will only change if and when your lender passes the rise on, and lenders will tell you in writing. On a typical 30-year principal-and-interest loan, a full 0.25-point rise adds roughly $16 a month for every $100,000 you owe. Now is a sensible time to check where your loan stands, and if repayments are already tight, to talk to your lender early.
What the RBA decided
At its meeting on Tuesday 29 September, the Reserve Bank’s Monetary Policy Board decided unanimously to raise the cash rate target from 4.35% to 4.60%. In its statement, the Board said inflation “remains elevated”, pointing to higher global energy prices and pressure on domestic capacity, and said it will “continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed” (RBA, 29 September 2026).
The cash rate isn’t the rate on your home loan. It’s the rate the RBA sets for overnight loans between banks, and it flows through to the rates lenders charge. Each lender decides for itself whether, by how much and from when to change its rates.
What it could mean for your repayments
If your lender passes on the full 0.25 points, here’s roughly what that adds to monthly repayments on a 30-year principal-and-interest loan:
| Loan balance | Approximate extra per month |
|---|---|
| $400,000 | about $65 |
| $600,000 | about $98 |
| $800,000 | about $131 |
Estimates only, not an offer or a quote. The exact change depends on your current rate, your remaining term and your loan type. Interest-only and fixed-rate loans work differently. Moneysmart’s mortgage calculator lets you run your own numbers.
If you’re on a fixed rate
Your rate doesn’t change until the fixed period ends. What matters is when that is. If it ends in the next 6 to 12 months, find out now what rate your loan will revert to, so it isn’t a surprise. Breaking a fixed loan early can cost a lot, so get a written break-cost estimate before making any decision.
Five things worth checking this week
- Your lender’s notice. Look out for an email or letter confirming whether your rate is changing and from which date.
- Your offset and redraw. Money sitting in an offset account reduces the interest you’re charged. If you’re paying for an offset or package, make sure you’re using it.
- Your buffer. Work out how many months of repayments you could cover if something changed. A buffer is easier to build before repayments rise than after.
- Your current rate compared with what’s on offer. Your current lender may reprice your loan if you ask. Refinancing can also help, but it has costs (discharge, application, government and possibly break fees) and isn’t always worth it. Compare the total cost over the same remaining term, not just the headline rate.
- Whether repayments are becoming hard. If they are, act early. See below.
If repayments are getting hard
You can ask your lender for a hardship variation under the National Credit Code if you’re struggling because of illness, job loss, reduced income or another change in circumstances. Lenders must consider and respond to your request, and options can include reduced or paused repayments for a period or a longer term. They don’t have to agree, and interest may continue to build, so ask exactly how any arrangement works.
Free, independent help is available from a financial counsellor through the National Debt Helpline on 1800 007 007 (ndh.org.au). Moneysmart also has a guide to dealing with repayment problems.
Will rates go up again?
Nobody knows for sure. The RBA said it will be guided by the data and may raise the cash rate again “if needed”. Some bank economists are forecasting another rise later this year, but forecasts change and have been wrong before. The safer plan is to make sure your loan still works for you if rates rise a little further, rather than to bet on a particular outcome.
How Click Financial can help
We’re a licensed mortgage broker in Bankstown. We can look at your current loan, check what your lender might offer if you ask, and compare options across our panel of 30+ lenders on total cost over the same remaining term. Sometimes the honest answer is that staying put is the right call, and we’ll tell you that.
For most home loans you won’t pay us a fee; we’re paid by the lender. Any fee is disclosed in writing first (see our Credit Guide).
Book a no-obligation Home Loan Health Check, or call 02 8708 7240.
Sources
- Reserve Bank of Australia, Statement by the Monetary Policy Board: Monetary Policy Decision, 29 September 2026
- ASIC Moneysmart, Mortgage calculator and Problems paying your bills
- National Debt Helpline, ndh.org.au, 1800 007 007
Written by the Click Financial team, licensed mortgage and finance brokers (A & M Group Pty Ltd, Australian Credit Licence 390820, MFAA member 320936). General information only, not credit advice. It doesn’t consider your objectives, financial situation or needs. Repayment figures are estimates for illustration only. Lending criteria, fees and charges apply. Read our Credit Guide.
