Banks Pass On the RBA Rate Rise: When Your Home Loan Rate Goes Up — October 2026

Australia's major banks have moved quickly to pass on the Reserve Bank's latest rate rise. Within a day of the RBA lifting the cash rate to 4.60% on Tuesday 29 September 2026, Commonwealth Bank, Westpac, NAB and ANZ all confirmed they will raise variable home loan rates by the full 0.25% p.a. For most of the big four's variable-rate customers, the increase takes effect on Friday 9 October 2026.

If you have a variable home loan, this is the date to plan around. Below we set out which lenders have confirmed, when each change starts, what it adds to repayments, and what Melbourne borrowers can do in the week before it hits.

Which Banks Have Passed On the September 2026 Rate Rise?

As of 1 October 2026, CBA, Westpac, NAB and ANZ have confirmed a full 0.25% p.a. increase to variable home loan rates from 9 October. Bankwest and Bank of Melbourne have also confirmed 9 October. Several mutual banks move a day earlier, on 8 October, and Macquarie follows on 15 October.

Based on lender announcements and media reports published 29 September – 1 October 2026. Lenders not listed may still be reviewing their rates or may not yet have announced publicly. Always confirm the change with your own lender.

When Will My Home Loan Rate Go Up?

If you bank with one of the big four, Bankwest or Bank of Melbourne, your variable rate is due to rise on Friday 9 October 2026. Customers of several mutual banks see the change a day earlier, on 8 October. For lenders not listed above, the change will usually follow within a few weeks of the RBA decision, once they announce.

The rate rise and the repayment change don't always happen on the same day. Bankwest, for example, says principal-and-interest borrowers will be given notice before their minimum repayment changes. Interest-only repayments update automatically from the effective date. Many lenders work the same way, so your higher repayment may show up a few days or weeks after 9 October, depending on your repayment cycle. Check your app or internet banking after the effective date, or ask your lender, to see your new minimum repayment.

What Have the Banks Said?

• CBA: Group executive Angus Sullivan said the RBA's decision came amid persistent inflation and ongoing global uncertainty. CBA has pointed customers who are struggling to its Financial Assistance Solutions team (CBA Newsroom).
• NAB: Group executive Ana Marinkovic encouraged customers who are worried about repayments to contact the bank early (ABC, 30 September).
• Westpac: Westpac's Carolyn McCann acknowledged the increase would add to cost-of-living pressure on households (ABC, 30 September).
• ANZ: ANZ said it was also reviewing its other interest rates (ABC, 30 September).

Every lender that has announced so far has passed on the full 0.25%. This is the fourth RBA rise of 2026. For the background to the decision, see our RBA rate decision explainer. On whether another rise could follow, see our analysis of the August 2026 CPI.

How Much Will the Bank Rate Rise Add to My Repayments?

A 0.25% rise adds about $81 a month to a $500,000 principal-and-interest loan over 30 years and about $123 a month to a $750,000 loan. Finder estimates the increase at roughly $120 a month on an average home loan of about $736,000.

Illustrative only. The table assumes a variable rate of 6.25% p.a. rising to 6.50% p.a., on an owner-occupier principal-and-interest loan over 30 years. Figures are rounded to the nearest dollar and exclude fees. These are not any lender's actual rates. Your rate, loan term, balance and outcome will differ.

What Should I Do Before 9 October?

You have about a week before the big four's increase takes effect. Here's how different borrowers can use it:

• Variable-rate owner-occupiers: check that your budget can absorb the new repayment. Compare your rate with what lenders are offering new customers, because the gap can be wider than the 0.25% rise. A refinancing review can show whether switching could offset some of the increase.
• Buyers with pre-approval: lenders assess borrowing power with a serviceability buffer on top of the actual rate, so a rate rise can reduce how much you can borrow. Re-check your limit with our borrowing power calculator before you bid, and ask your broker whether your pre-approval needs updating.
• Loans in progress: if your loan hasn't settled yet, confirm with your broker or lender which rate will apply at settlement and whether any rate lock is available.
• First home buyers: confirm your scheme eligibility and price caps on our first home buyer loans page.
• Investors: review your holding costs and loan structure (see investment loans), and speak with your accountant about tax.
• Fixed-rate borrowers: your rate won't change until your fixed term ends. If that happens in the next six months, start comparing options now rather than rolling onto the revert rate by default.

If you're finding repayments hard, contact your lender early. Every major bank has a hardship team, and options are wider before you miss a repayment.

IFG's Take

The speed of this response tells you something. The big four announced within 24 hours and all passed on the full rise. With the major banks moving on the same date, the 9 October increase will reach many households at once. In my experience, which goes back to business banking at NAB in 2003, borrowers who look at their loan before a rate rise lands generally have more options than those who wait for the new repayment to arrive.

The rate you pay today isn't necessarily the rate available to you. We compare a deliberately broad panel of bank, non-bank and specialist lenders for clients across Melbourne's north and west, from Essendon and Moonee Ponds to Coburg North. To see where your loan sits before 9 October, start at our Melbourne mortgage broker home page.

Frequently Asked Questions: Banks Passing On the Rate Rise

When will CBA, Westpac, NAB and ANZ increase home loan rates?

All four major banks have announced a 0.25% p.a. increase to variable home loan rates, effective Friday 9 October 2026, following the RBA's rate rise on 29 September 2026.

Are banks passing on the full RBA rate rise?

Yes. Every lender that had announced by 1 October 2026, including the big four, Bankwest, Bank of Melbourne and Macquarie, said it would pass on the full 0.25% increase to variable home loan rates.

When does Macquarie's home loan rate rise take effect?

Macquarie Bank's 0.25% increase to variable home loan rates takes effect on 15 October 2026, according to ABC News.

Will my repayments go up on 9 October?

Your interest rate changes on the lender's effective date, but your minimum repayment may change later. Some lenders give principal-and-interest borrowers notice before the new repayment starts, while interest-only repayments usually update from the effective date. Check your lender's app or contact them.

Does the rate rise affect fixed-rate home loans?

No. Fixed rates stay the same until the fixed term ends. When it does, the loan usually rolls onto a variable revert rate, so it's worth comparing options before the expiry date.

How much will a 0.25% rate rise add to my mortgage?

As an illustration, on a 30-year principal-and-interest loan a 0.25% rise from 6.25% to 6.50% adds about $81 a month on $500,000 and about $123 a month on $750,000. Your actual change depends on your rate, balance and loan term.

This article is general information only and does not constitute financial, credit, tax or legal advice. It does not take into account your objectives, financial situation or needs; consider whether it is appropriate for you and seek personalised advice before acting. Lender changes and effective dates are taken from lender announcements and media reports published between 29 September and 1 October 2026, may be amended by lenders, and should be confirmed with your lender. Inclusion of a lender is not a recommendation. Repayment figures are illustrative only, based on the hypothetical assumptions stated; they are not any lender's rates or offers of credit. Integrated Finance Group’s brokers are Credit Representatives of BLSSA Pty Ltd, Australian Credit Licence 391237. All credit applications are subject to lender assessment and approval. Our Credit Guide is available on request. Tax questions should be directed to your accountant.