How much will my mortgage go up when rates rise?

The RBA lifted the cash rate to 4.60% on 29 September 2026, its fourth rise this year. Commonwealth Bank, Westpac, NAB and ANZ passed the full 0.25 points on to variable home loans from 9 October 2026. Here is what that means in dollars, and how to work out the effect on your own loan with our mortgage repayment calculator.

How much a 0.25% rate rise adds to repayments

Loan balance	At 6.50%	At 6.75%	Extra per month
$400,000	$2,528	$2,594	$66
$500,000	$3,160	$3,243	$83
$600,000	$3,792	$3,892	$99
$750,000	$4,741	$4,864	$124
$1,000,000	$6,321	$6,486	$165

As a rule of thumb, each 0.25 point rise adds about $16 to $17 a month for every $100,000 you owe on a 30-year loan. If you have less time left on your loan, the rise costs slightly less each month: on $600,000 with 25 years left it is about $94.

What the 2026 rate rises have cost so far

The cash rate started 2026 at 3.60% and has risen four times:

Decision	Change	Cash rate
February 2026	Up 0.25	3.85%
March 2026	Up 0.25	4.10%
May 2026	Up 0.25	4.35%
September 2026	Up 0.25	4.60%

If your lender passed on every rise in full, a loan that was at 5.50% in January is now at about 6.50%. On a $600,000 loan that lifts the monthly repayment from $3,407 to $3,792, an extra $386 a month or about $4,600 a year. On $1,000,000 the increase is $643 a month.

When will my repayments actually change?

Banks set their own timing. After the September decision, the big four raised variable rates from 9 October 2026, and Macquarie followed on 15 October. Your lender will write to you with the new rate and repayment, usually a few weeks before it takes effect.

• Variable loans change on the date your lender announces.
• Fixed loans do not change until the fixed period ends. When it does, you move to the lender’s revert rate, which is often much higher than the best rates for new customers. Read fixed or variable in 2026 before your fixed period ends.
• Some lenders keep your repayment the same and extend your loan term instead, or only lift repayments once a year. Check your letter.

Will rates rise again?

The next RBA decision is on 3 November 2026, after the September quarter inflation figures are released on 28 October. Lenders have lifted hundreds of fixed rates since September, which Canstar has described as a sign the market expects more tightening. Nobody can tell you for certain where rates go next, so the safest plan is to check you could cope with a higher rate.

A further 0.25 point rise would add another $100 a month to a $600,000 loan. Use the repayment calculator to test your budget at 7% and 7.50%.

Five ways to soften a rate rise

1. Ask your bank for a lower rate. Existing customers often pay more than new ones. A 0.30 point discount on a $600,000 loan saves about $113 a month. Here is how to ask, with a script.
2. Compare and refinance. If your lender won’t move, switching can save more than the rate rise cost you. Check whether refinancing is worth it with the refinance calculator.
3. Use an offset account. Every dollar of savings in offset reduces the balance you are charged interest on.
4. Keep your old repayment if you can. If you have been paying more than the minimum, you already have a buffer. Redraw only if you need it.
5. Talk to your lender early if you are struggling. Lenders must consider hardship requests. Options include a temporary repayment pause, reduced repayments or a longer term.

If you are planning to buy rather than already owning, rate rises also cut how much you can borrow, because lenders test you at your rate plus 3 points. See how the APRA serviceability buffer works.

Frequently asked questions