The Reserve Bank lifted the cash rate by 0.25 percentage points to 4.85% on 3 November 2026, its fifth rise this year and the highest cash rate since 2008. On the average new owner-occupier loan of $731,000, the MFAA estimates a full pass-through adds about $119 a month. That extra cost does not hit every borrower on the same day, and the November rate rise affects a variable loan, a fixed loan and an interest-only loan in different ways. Here is when your repayment is likely to change and what to check before it does.
When does the November rate rise reach your repayment?
Lenders set their own effective dates after an RBA decision. Most pass a change on to variable rates within one to two weeks, so many borrowers will see the new rate apply from mid-November rather than from 4 November, the day the RBA’s new target took effect.
The rate change and the repayment change are two separate events. Interest usually starts accruing at the higher rate from your lender’s effective date, while your scheduled repayment amount is often recalculated a little later and may first show on your next repayment cycle. Under the National Credit Code, your lender must tell you about a variable rate change no later than the day it takes effect, which can be by public notice, followed by details on your next statement.
If you pay monthly and your debit falls a few days after the effective date, the first higher payment could arrive in late November or December. Your lender’s notice or online banking will show the exact figure.
How much more will you pay?
The increase depends on your balance, remaining term and loan type. Using the same illustrative rates as the MFAA, a move from 6.24% to 6.49% on a 30-year principal and interest loan works out roughly as follows:
- $500,000 loan: about $82 more a month ($3,075 to $3,157)
- $600,000 loan: about $98 more a month ($3,690 to $3,788)
- $800,000 loan: about $131 more a month ($4,921 to $5,051)
Interest-only borrowers feel the change a little faster, because every dollar of the repayment is interest. On $600,000, an interest-only payment moves from about $3,120 to $3,245 a month at those rates, an increase of around $125. These are estimates only; your actual figure will reflect your own rate and how your lender recalculates.
Check 1: are you on variable, fixed or split?
A fixed rate does not move until the fixed period ends. If you have a split loan, only the variable portion changes now. Borrowers with a fixed term ending in the next 6 to 12 months may want to look at what the lender’s current revert rate is, since that rate already reflects five rises this year.
Check 2: will your lender lift your repayment automatically?
Many lenders recalculate the minimum repayment automatically. Some keep a fixed direct debit amount you set yourself, which can leave you paying less than the new minimum and falling behind without realising. If you pay by a manual transfer or a set debit, confirm the new minimum in your app and adjust the amount.
The reverse also applies. If you already pay well above the minimum, the higher rate may simply mean a larger share of your payment goes to interest, and your loan takes slightly longer to pay down unless you increase it.
Check 3: is your offset or redraw working as hard as it can?
Each dollar in an offset account reduces the balance interest is charged on. At 6.49%, $30,000 sitting in a linked offset saves about $162 a month in interest, which more than covers the increase on a typical loan. Money parked in a separate savings account at a lower rate is doing less for you if an offset is available on your loan.
Check 4: is your rate still competitive?
A rate rise is a sensible moment to compare your rate with what your lender offers new customers. A repricing request to your existing lender costs nothing and can sometimes be done in a phone call. Refinancing elsewhere can save more, but the new lender will reassess you at today’s higher rates plus a serviceability buffer, so the option is not open to everyone.
What if you already have pre-approval or are struggling to pay?
Buyers holding a pre-approval should expect the lender to reassess at the new rate before formal approval. We cover that in more detail in why your pre-approval may be worth less after a rate rise. If the higher repayment looks unmanageable, contacting your lender early gives you more options than waiting for a missed payment, and our guide on how to ask your lender for hardship help walks through the steps.
How we approach a rate rise
We do not try to predict where rates go next. Loan structure usually matters more than the rate on any one day: the right mix of variable and fixed, an offset that holds your buffer, and a repayment set at a level you can sustain if rates move again. A short review after the November rate rise is a practical way to check all three, and JRW Finance can compare your current loan against what is available across our lender panel.
Key Takeaways
- The RBA raised the cash rate to 4.85% on 3 November 2026, and lenders set their own dates for passing it on.
- A full 0.25% pass-through adds about $119 a month on the $731,000 average new owner-occupier loan, according to the MFAA.
- Fixed rates do not change until the fixed period ends, while split loans change only on the variable portion.
- Borrowers paying by a set debit should confirm the new minimum repayment so they do not fall behind.
- Money held in an offset account reduces interest at the new rate, often by more than the rate rise adds.
- Asking your lender to reprice is free, and refinancing elsewhere requires passing serviceability at current rates.