Another rate rise. Time to review your home loan

Why rates have risen

Inflation remains higher than the Reserve Bank wants. Its latest statement points to rising fuel and commodity costs, domestic capacity pressures and higher prices for technology-related goods.

The RBA now expects inflation to return to the top of its 2–3% target range in late 2027, later than previously forecast.

What could repayments look like

Variable repayments may increase if your lender passes on the rise. Fixed repayments generally remain unchanged during the fixed term, although any variable portion may be affected.

For a principal-and-interest loan with 25 years remaining, a rate increase from 6.00% to 6.25% adds approximately:

$500,000 loan: $77 a month
$750,000 loan: $115 a month
$1 million loan: $154 a month

These illustrations assume monthly repayments, no fees and unchanged loan balances. Your actual rate and remaining term will affect the result.

Start with your current lender

A rate rise is a useful prompt to check whether your loan remains competitive. We can review your arrangements and ask your current lender whether better pricing is available.

Even if you stay with the same lender, a review can help you understand your repayments and whether your loan features still suit your needs.

Consider the full cost of switching

Where appropriate, we can compare alternatives from our approved lender panel. Refinancing needs to make sense after discharge costs, application fees, any fixed-rate break costs and the features you need.

A lower repayment does not always mean a cheaper loan. Restarting a longer term can reduce monthly repayments while increasing total interest.

If repayments are becoming difficult

Contact your lender early to discuss hardship assistance, and let your AAA broker know. Acting before you fall behind gives you more time to explore options.

Interest-only repayments or debt consolidation require careful assessment. They may increase total costs and will not suit every household.