February’s rate rise is no longer just a headline — it’s now showing up in real repayment figures.
Following the recent cash rate increase by the Reserve Bank of Australia (RBA), lenders have begun adjusting variable home loan rates. For many Australian borrowers, that means higher monthly repayments are already in effect — or about to be.
The important question isn’t whether rates have increased.
It’s how this affects your specific loan.
Variable-Rate Loans: Immediate Impact
If you’re on a variable rate, your lender will typically pass on some or all of the RBA’s increase.
Once applied, your minimum monthly repayment rises accordingly. Depending on your loan size, even a 0.25% increase can mean hundreds — or thousands — of dollars more per year.
For example:
-
A $600,000 loan could see repayments increase by roughly $90–$100 per month per 0.25% rise.
-
Larger loan balances will feel a greater impact.
Because lenders don’t always move in perfect sync, the timing and size of the increase can vary.
Fixed-Rate Loans: Stability (For Now)
If you’re on a fixed rate, your repayments remain unchanged until your fixed term expires.
However, there are two important considerations:
-
When your fixed term ends, you may revert to a much higher variable rate.
-
New fixed rates today are generally higher than they were several months ago.
Many borrowers coming off ultra-low fixed rates are experiencing what’s commonly referred to as “repayment shock.” Planning ahead for this transition is critical.
Not All Lenders Move the Same Way
While the RBA sets the cash rate, individual lenders determine:
-
Whether they pass on the full increase
-
When they apply it
-
Whether they adjust pricing further later
This means two borrowers with similar loan sizes but different lenders could experience different repayment outcomes.
That’s why it’s important to look beyond headlines and examine your actual loan structure.
Why Reviewing Your Loan Now Matters
Rate movements in 2026 may not be a one-off event. Economic conditions, inflation trends, and policy decisions all influence future rate settings.
Rather than reacting after your repayment increases, proactive modelling helps you:
-
Understand your repayment under current rates
-
Forecast potential repayments if rates move again
-
Assess refinancing or restructuring options
-
Plan cash flow for the year ahead
Clarity reduces stress — and gives you control.
What Should You Do Next?
A quick loan review can provide answers to key questions:
-
What is my new minimum repayment?
-
How much extra am I paying per year?
-
Should I consider refinancing?
-
What happens if rates rise again?
-
Can I structure my loan more efficiently?
Every situation is different. Your loan amount, lender, rate type, and financial goals all matter.
