Borrowing Strategy
The cash rate went to 4.60%. What that actually costs you
The repayment maths on your loan size, what happens if your fixed rate ends soon, and whether refinancing is worth it at a 15-year high.
The Reserve Bank raised the cash rate to 4.60% on 29 September 2026. It is the fourth rise this year and the highest the cash rate has been since October 2011.
Most coverage stops there. The question that actually matters is what it does to your repayment, and whether it changes anything you should be doing. So here is that, with the maths shown.
What 0.25% adds to your repayment
These figures assume a 25-year remaining term and a variable rate moving from 6.25% to 6.50%, which is roughly where the average new owner-occupier rate sits after this decision. Your own rate and term will differ, so treat these as the shape of it rather than your number.
- $400,000 loan ... about $62 more a month
- $500,000 loan ... about $78 more a month
- $600,000 loan ... about $93 more a month
- $750,000 loan ... about $117 more a month
- $1,000,000 loan ... about $155 more a month
When it actually hits you
Lenders are not obliged to pass on a cash rate move, and they do not all move by the same amount or on the same day. In practice most announce within a week or two and the change takes effect a few weeks after that.
The letter tends to arrive quietly, and it will tell you your new rate. What it will not tell you is whether that rate is still competitive, because that is not your lender’s job.
If your fixed rate ends in the next year
This is the group with the most at stake and the most time to do something about it. If you fixed when rates were low, you are not rolling onto 6.50%. You are rolling from something far lower onto whatever your lender’s revert rate happens to be, which is often well above the rates it offers new customers.
- Find out your exact expiry date. It is on your loan contract or in your banking app. Six months out is a comfortable runway; six weeks is not.
- Ask what your revert rate will be. Lenders will tell you. It is frequently a surprise.
- Compare it before you roll, not after. Once you are on the revert rate you are paying it while you sort something out.
- Check whether break costs apply. If you want to move before expiry, fixed-rate break costs can be significant and they are calculated by your lender.
Is refinancing worth it right now
Sometimes, and the honest answer is that it depends on things a general article cannot see. But there are a few tests that tell you whether it is worth a proper look.
- Has it been more than two years since you last reviewed? Lender pricing for new business moves faster than pricing for existing customers.
- Do you know the actual rate you are paying? A surprising number of people do not, and it is the only number that matters here.
- Has your position improved? More equity, higher income or cleared debts can change which lenders will look at you.
- Are you carrying other debt at higher rates? Sometimes the win is in restructuring rather than the home loan rate itself.
What I would actually do this week
- Find your current rate. Not the cash rate. The number on your loan.
- Work out your new repayment using the figures above, or run your own on the repayment calculator.
- If you are fixed, diarise your expiry and set a reminder six months out.
- If you have not reviewed in two years, review. Even if the answer is to stay put, you will know why.
One more thing. The board said it will raise again if it needs to, and ANZ is tipping a second rise on 3 November. Others expect a pause. Forecasts are not decisions, and nobody knows. What you can control is whether the rate you are paying is a fair one.
Common questions
How much will my repayment go up?
On a 25-year remaining term with a variable rate moving from 6.25% to 6.50%, a 0.25% rise adds roughly $62 a month on a $400,000 loan, $93 on $600,000 and $155 on $1,000,000. Your own figure depends on your balance, your actual rate and how long is left, so those are indicative.
When will my lender pass the rise on?
Lenders set their own rates and timing. Most announce within a week or two of an RBA decision, with the change taking effect a few weeks later. They are not required to pass on the full amount, and some do not.
Should I fix my rate now?
That depends on your circumstances, not on the headline. Fixing buys certainty and gives up flexibility... fixed loans usually limit extra repayments, offset is often unavailable or restricted, and breaking early can be expensive. It is worth weighing against your plans for the next few years rather than against a forecast.
My fixed rate ends soon. What should I do?
Find your exact expiry date and ask your lender what your revert rate will be, because that is often well above what the same lender offers new customers. Do that several months out, not in the final weeks, so you have time to compare properly. Subject to lender criteria and your circumstances.
Will rates go up again?
Nobody can say. The board said it would raise the cash rate further if needed to return inflation to target. ANZ tips a second 0.25% rise on 3 November, which would take the cash rate to 4.85%, while others expect a pause. Forecasts change as the data lands. The live position is on my RBA cash rate tracker.
