RBA Cash Rate Update Nov 2026
On Tuesday 3 November 2026 (Melbourne Cup Day), the Reserve Bank of Australia (RBA) increased the cash rate by 0.25 percentage points to 4.85%.
This is the fifth rate rise this year. It also takes the cash rate to its highest level since 2008.
You can read the RBA’s full statement here.
If you have a variable home loan, your repayments are likely to go up again soon. In this article, I’ll explain why the RBA moved, what it could cost you, and the practical steps you can take right now.
- What Will My Repayments Be? (Repayments Calculator) Calculates your new repayments.
- My Savings by Refinancing (Our Rate Review Calculator) Calculates what you might save by refinancing – these rate already include the 0.25% announced today
- How Much Can I Borrow? (Borrowing Power Calculator) Calculates how much you can still borrow following the rate changes
Why did the RBA raise rates again?
In simple terms, prices are still rising too fast.
The RBA’s job is to keep inflation between 2% and 3% a year. Right now, it is well above that.
The latest figures from the Australian Bureau of Statistics (ABS) showed:
- Headline inflation rose from 4.0% in August to 4.3% in September
- Underlying inflation (the trimmed mean, which strips out big one-off price swings) rose from 3.5% to 3.6%
You can see the ABS release here.
Housing costs were the biggest contributor to inflation in September. Petrol prices also jumped sharply, and the end of the government’s electricity rebates pushed power bills higher.
In its statement, the RBA said inflation is now “broadly based”. That means it’s not just one or two things getting more expensive. It’s showing up across lots of everyday goods and services.
The three big risks the RBA is watching
The RBA had already flagged its concerns before this decision. In the minutes of its September meeting, the Board pointed to three key risks:
- Higher oil prices caused by the conflict in the Middle East
- Cost pressures from the global AI boom, which is pushing up prices for technology and related goods
- Limits on the Australian economy’s capacity to keep up with demand
The Board warned these pressures could keep inflation high and said it was ready to raise rates again if needed. On Tuesday, it did exactly that.
The RBA’s new forecasts are also worth noting. It now expects inflation to stay above 3% for the coming year. It doesn’t expect inflation to get back to the top of its target range until late 2027, which is around nine months later than it previously thought.
The Board was split
This wasn’t a unanimous decision. Six Board members voted to raise rates, while three voted to leave the cash rate on hold at 4.60%.
That tells us the Board knows households are under real pressure. The RBA itself noted that the economy is slowing, unemployment has risen and house prices have fallen significantly.
So why raise rates anyway? The Board is worried that if high inflation goes on for too long, people and businesses will start to expect it, and that makes it much harder to bring down.
What does a 0.25% rise mean for your repayments?
Here’s a rough guide. These examples assume a 30-year principal and interest loan with the variable rate rising from 6.20% to 6.45%.
Loan amount | Extra per month | Extra per year |
|---|---|---|
$500,000 | about $82 | about $980 |
$750,000 | about $122 | about $1,470 |
$1,000,000 | about $163 | about $1,960 |
That might not sound huge on its own. But this is the fifth rise this year. For many borrowers, those rises have now stacked up to several hundred dollars extra every month.
Your own numbers will depend on your rate, loan balance and how many years you have left. You can check them using our Home Loan Repayments Calculator.
When will it hit? Most lenders pass on rate rises within a couple of weeks. Your bank should write to you with your new repayment amount and the date it starts. If you’re on a fixed rate, nothing changes until your fixed period ends.
Who will feel it most?
Existing variable rate borrowers. You’ll see the change first. If your budget was already tight, now is the time to look at your loan, not later.
Borrowers coming off fixed rates. If your fixed rate ends in the next 6 to 12 months, you could face a big jump in repayments. Planning ahead gives you time to compare options before the rate rolls over.
First home buyers. Higher rates mean lenders test your budget at a higher rate too. That can reduce how much you’re able to borrow. The good news is that falling house prices in some areas may help balance this out. Use our How Much Can I Borrow Calculator to get a starting point, then talk to us about first home buyer loans and government schemes.
Property investors. Higher interest costs affect your cash flow. Interest on an investment loan is generally tax deductible, but it still has to be paid each month. It’s a good time to review your loan structure. See our investment property loans page or read Good Debt vs Bad Debt: What’s the Difference?
Single parents. Managing a mortgage on one income makes every rate rise feel bigger. If you’re feeling the squeeze, there may be options to restructure. Learn more about our single parent home loans.
Will rates go up again?
Nobody knows for sure. The RBA hasn’t said it will raise rates again, but it hasn’t ruled it out either. It said it will be guided by the data.
Before this decision, most of the big four banks saw 4.85% as the likely peak. Some economists still think another rise in early 2027 is possible if inflation doesn’t ease.
The next big data point is the ABS October inflation figures, due on 25 November. The RBA’s next meeting is in December.
My advice is simple: don’t try to guess what the RBA will do next. Focus on what you can control, which is the rate you’re paying and how your loan is set up.
5 practical steps you can take now
1. Check your current rate. Find your latest statement and look at the exact interest rate you’re paying. Many people are surprised to find they’re paying more than new customers at the same bank.
2. Ask your lender for a better deal. Lenders are still competing hard for good borrowers. A quick call asking for a rate review can sometimes save you thousands over a year.
3. Compare what refinancing could save you. If your lender won’t move, another one might. Try our Refinance Savings Calculator or Loan Comparison Calculator to see the difference. You can also read about how the refinancing process works.
4. Use your offset or redraw wisely. Every dollar sitting in an offset account reduces the interest you pay. If you have spare savings, make sure they’re working for you.
5. Review your budget and buffer. Look at where your money is going each month. Having a few months of repayments set aside can take a lot of stress out of rising rates.
If you’re struggling to keep up with repayments, please don’t wait. Contact your lender early. Lenders have hardship options, and the sooner you talk to them, the more choices you’ll have.
Frequently Asked Questions
Will my mortgage repayments change after this announcement?
If you have a variable-rate loan, most likely yes. Your lender will tell you how much your repayments are going up and when the change starts. Fixed-rate loans won’t change until the fixed period ends.
Should I refinance now or wait?
That depends on your current rate, your loan features and your goals. A rate rise is a good trigger to compare your loan, because lenders often keep their best rates for new customers.
Will this affect how much I can borrow?
Yes. Higher rates usually reduce borrowing capacity. If you have a pre-approval, check with your broker that it still reflects today’s rates.
Is now a good time to buy property?
The right time to buy is when your finances, goals and circumstances line up. Interest rates are only one part of the decision.
How often does the RBA meet?
The RBA Board meets eight times a year to review the economy and decide whether to change the cash rate.
How often should I review my home loan?
At least once a year, and whenever rates change. Lenders’ offers change and so can your situation, so a regular review makes sure you’re still getting a good deal.
How Does Your Rate Compare?
Use our Free Rate Review Calculator to see how your rate stacks up against our panel’s best available rates. It takes about two minutes.
Let’s look at your loan together
Another rate rise is never welcome news, especially if you’re already managing higher repayments. But you don’t have to just accept it.
At Awesome Lending Solutions, we compare more than 60 lenders to find a loan that fits your situation. We’ll show you exactly what the latest rise means for you and whether there’s a better option out there.
