Big Banks Hike Mortgage Rates Again — What Australian Borrowers Need to Know in 2026
If you have a variable home loan, your repayments are about to rise — again. All four of Australia’s major banks have confirmed they will pass on the Reserve Bank of Australia’s (RBA) latest 0.25 percentage point cash rate hike in full, pushing the RBA rate hike home loan 2026 cash rate to 4.10%. This marks the second RBA rate increase in 2026, and economists are already tipping another rise in May.
Which Banks Are Raising Rates and When?
Following the RBA’s March 2026 decision, the big four banks and several others have all moved to increase variable home loan rates:
- CBA, NAB, and ANZ — effective from 27 March 2026
- Westpac — effective from 31 March 2026
- Teachers Mutual Bank (including Firefighters Mutual, Health Professionals Bank, UniBank) — effective 26 March 2026
- Macquarie Bank — effective 2 April 2026
After the increases, Westpac will advertise the lowest owner-occupier variable rate among the big four at 5.74%, followed by CBA at 5.84%, ANZ at 6.00%, and NAB at 6.19%, according to Canstar data.
Comparison rate calculated on a loan amount of $150,000 over a term of 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges.
How Much More Will You Be Paying?
The impact on household budgets is real. Canstar data insights director Sally Tindall confirmed that a typical $600,000 mortgage with 25 years remaining will see approximately $91 added to monthly repayments from the March hike. Combined with February’s increase, that represents around $181 extra per month — over $2,170 per year in additional repayments.
According to Finder, the average Australian home loan of $736,259 will see repayments reach approximately $4,410 per month if lenders pass on the full increase. Tindall noted: “Between surging grocery bills, skyrocketing petrol prices, the end of electricity rebates, and rising health insurance premiums, household budgets could well be breaking at the seams on the back of this news.”
Should You Switch to Interest-Only or Extend Your Loan Term?
Some borrowers may consider switching to interest-only repayments or extending their loan term for short-term relief. However, Tindall cautioned against this: “What eases your budget now may add thousands in interest later.” Rather than a reactive approach, the smarter strategy is to review your current home loan and explore more competitive choices. With APRA’s serviceability buffer now testing borrowers at 9.3–9.5%, making sure your loan structure suits your long-term needs has never been more important.
What Should Borrowers Do Right Now?
The current RBA rate hike home loan 2026 environment is a critical time to reassess your mortgage strategy. Here’s what you can do:
- Review your current rate: Are you on a competitive variable rate, or has your bank quietly moved you to a higher margin product?
- Compare your options: With many lenders on the market, there may be more competitive choices available to you right now.
- Speak with a mortgage broker: A broker can compare hundreds of products from multiple lenders and provide personalised assistance tailored to your financial situation — at no cost to you.
- Consider fixing part of your loan: Locking in a portion at a fixed rate could provide certainty if more hikes are on the horizon.
Don’t wait until the next hike to take action. Now is the time to make sure you’re on the right home loan for your needs.
Need personalised assistance?
Contact Daniel Nguyen, Mortgage Broker at Finance Hub and Networks.
📞 0430 11 11 88
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