Five Interest Rate Rises in 2026: Is It Time to Review Your Home Loan?

On 3 November 2026 the Reserve Bank of Australia raised the cash rate by 0.25 percentage points to 4.85%, its fifth increase this year and the highest level since late 2008. The Board voted six to three for the rise, citing inflation that is high and broadly based, and now expects inflation to stay elevated through much of 2027. Annual CPI inflation reached 4.3% in September. Since the start of 2026 the cash rate has risen by 1.25 percentage points. If that full increase were passed on to a $1 million, 30 year loan, repayments would rise by about $808 a month, or roughly $9,700 a year. With lenders pricing new and existing customers differently, now is a good time to review your rate, ask your lender for a better deal and compare the full cost of switching. Olive Road Financial helps borrowers in Sydney and Brisbane do exactly that.

The question is no longer just whether rates will rise again. It is whether your home loan is still competitive.

Illustrative only: principal and interest, $1 million balance, 30 year term recalculated at each rate. Actual repayments depend on your lender, loan balance, remaining term and how much of each rise is passed on.

It raised the cash rate by 0.25 percentage points to 4.85%. It was the fifth increase of 2026 and takes the cash rate to its highest level since late 2008. The Board was divided: six members voted for the rise and three voted to hold at 4.60%.

The Board said inflation remains high and broadly based, pointing to tighter capacity pressures, higher fuel prices flowing through to other goods and services, and firms passing on rising costs. Annual CPI inflation reached 4.3% in the year to September, up from 4.0% in August, driven mainly by housing and transport costs. The RBA now expects inflation to remain elevated through much of 2027.

A significant jump in repayments. The cash rate began 2026 at 3.60% and has risen in February, March, May, September and now November, an increase of 1.25 percentage points. Roy Morgan estimates 1.75 million owner occupier mortgage holders were already at risk of mortgage stress in September, before this latest rise.

For a homeowner with a $1 million, 30 year principal and interest loan, a variable rate moving from 5.50% to 6.75% lifts monthly repayments from about $5,678 to $6,486, an extra $808 a month or roughly $9,700 a year. These figures are illustrative and assume the full increase is passed on to a constant loan balance.

You might be. Lenders do not all respond to RBA decisions the same way. Banks regularly adjust their pricing, offer sharper rates to attract new customers and reassess what they offer existing borrowers, so two people with similar loans can pay quite different rates. If you have stayed with the same lender for several years, the gap may be significant. A home loan review checks whether your rate, structure and features still suit you.

Possibly, so ask first. Moneysmart suggests telling your current lender you are considering a cheaper loan elsewhere, as they may lower your rate to keep your business, and having at least 20% equity and a good credit score gives you more room to negotiate. Some lenders have less flexibility, particularly if your circumstances or loan structure have changed. A mortgage broker can compare the market and show whether staying or switching delivers the better outcome.

Only if it improves your overall position. Refinancing replaces your current mortgage with a new loan, with your existing lender or another one. Before switching, work through these steps:

1. Compare the rates properly. Look at both the interest rate and the comparison rate, not just the headline offer.

2. Count the switching costs. Discharge, application and switching fees, and lenders mortgage insurance if you have less than 20% equity, all reduce the benefit.

3. Check the loan term. Avoid extending your term without meaning to, as a longer term can increase the total interest you pay.

4. Weigh the features. Consider whether an offset account would reduce your interest, and check any fixed rate break costs.

5. Confirm your eligibility. Your current income, expenses and debts must meet the new lender's requirements.

It depends on your circumstances. After five rises, some borrowers are considering fixing to protect against further increases. Fixed rates give repayment certainty, but can restrict extra repayments, offset accounts and your ability to refinance without break costs. Variable rates offer more flexibility but leave you exposed to future rate moves. For some households, splitting a loan between fixed and variable portions can balance the two.

Because larger balances magnify every rate difference. Many Sydney and Brisbane homeowners carry substantial mortgages, especially those who bought during periods of strong price growth. On a $1.5 million loan, a 0.25 percentage point difference in rate is worth about $3,750 a year in interest on an unchanged balance. Actual savings depend on repayments, fees and loan terms, but the example shows why comparing lenders can be worthwhile. A review can also uncover opportunities to consolidate debts, restructure lending or use equity more effectively, subject to suitability and lender approval.

After five rate rises in a year, doing nothing could mean staying on a loan that no longer suits you. Olive Road Financial, with teams in Sydney and Brisbane, helps borrowers review existing mortgages, compare refinancing options and understand their borrowing capacity. Before you accept another increase in your repayments, book a home loan review with Olive Road Financial.

Five rate rises in one year is a strong signal to stop and check your loan. Many of the borrowers we speak to are paying more than they need to, simply because their rate has not been reviewed since the loan was set up. A short review can show whether your lender will sharpen its rate, whether another lender would do better, and whether your structure still fits your plans.

The question is no longer just whether rates will rise again. It is whether your home loan is still competitive.

Olive Road Financial is a mortgage broking business with teams in Sydney and Brisbane, helping clients with home, investment and commercial lending. We compare lenders, explain how each one assesses borrowing capacity and look after the application from preapproval to settlement. Thinking of buying, refinancing or investing? Book an appointment with the Olive Road Financial team.

All sources accessed 3 November 2026. This article is general information only and does not take your objectives, financial situation or needs into account. It is not credit, financial or tax advice. Lending criteria, fees and charges apply. Speak with a qualified mortgage broker before making a decision. Repayment examples are illustrative and depend on individual loan terms.

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