The Reserve Bank lifted the cash rate by 0.25 percentage points to 4.85% on 3 November 2026, effective from 4 Nov 2026. It is the fifth rise in twelve months. A year ago the cash rate was 3.60%. For anyone with a variable home loan, the question is simple: how much more will I pay?
What the rise adds to your repayments
Banks usually pass a cash rate rise straight on to variable rates within a week or two. The table below assumes your lender passes on the full 0.25%, on a principal and interest loan at 6.24% with 25 years left.
| Amount owing | Extra per month | Extra per year |
|---|---|---|
| $300,000 | +$47 | +$559 |
| $400,000 | +$62 | +$745 |
| $500,000 | +$78 | +$932 |
| $600,000 | +$93 | +$1,118 |
| $750,000 | +$116 | +$1,398 |
| $1,000,000 | +$155 | +$1,864 |
The extra cost grows with the loan, but not quite in proportion. Someone with a long time left on their loan sees a bigger jump than someone close to paying it off, because more of each repayment is interest.
What a basis point costs
Rate moves are often quoted in basis points. One basis point is 0.01%, so this rise was 25 basis points. On a $600,000 loan at 6.24%, each basis point adds about $3.71 a month. That is a handy rule of thumb: multiply it by the size of any future move to estimate what it would cost you.
Twelve months of rises
The RBA has now raised rates 5 times since February 2026, a total of 125 basis points. On the same $600,000 loan, those rises together add about $456 a month compared with a year ago, or roughly $5,467 a year. The RBA has been responding to inflation, which reached 4.3% in the year to September, well above its 2 to 3% target.
Fixed loans, offsets and what to do next
- Fixed rate loans don't change until the fixed term ends. The risk is the jump when you roll off.
- Offset balances reduce the interest you pay. Use your balance minus your offset to estimate the impact.
- Check your lender's rate against the market. New customer rates are often lower, and a broker can compare them at no cost.
- Keep repayments up if a future cut arrives. Some lenders lower repayments automatically, but paying the old amount clears the loan faster.
Why your bank's rate isn't the cash rate
The cash rate is what banks charge each other for overnight loans. Your mortgage rate is higher because it includes the lender's funding costs and margin, which is why the example loan above is at 6.49% after the rise while the cash rate is 4.85%. What matters is the change: when the cash rate moves 0.25%, variable rates usually move by the same 0.25%.
When the RBA meets next
The Monetary Policy Board announces its next decision on Tuesday 8 December 2026 at 2.30 pm Sydney time. Whether rates rise again will depend largely on the October and November inflation figures. To see the exact change for your own balance, rate and term, use the RBA cash rate calculator, which reads the current cash rate directly from the RBA.