The RBA has increased rates by 25 basis points in November. The national cash rate is now 4.35%.

RateCity research director Sally Tindall said: "The average borrower has seen a 49 per cent increase to their monthly repayments - but they don't have to cop it on the chin. Don't wait. Do your research and act now, because the sooner you refinance, the more money you're likely to save."

Stay tuned to bank rate changes as they happens - and stay up to date with the latest RBA news by signing up to RateCity’s Rate Tracker email alerts, so you can be the first to know if your bank has changed its mortgage rates.

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6.84%

17 Nov 2023

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11 Nov 2023

No time to check the website? Stay up to date with the latest RBA news by signing up to RateCity’s Rate Tracker email alerts, so you can be the first to know if your bank has changed their mortgage rates. Notify me when rates change.

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5.50% introductory rate for 4 months, effective 10th November. New customers only.

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Get notified if your lender passes on rate changes.

What if the cash rate changes?

Loan Details
$
%
Repayment with the new cash rate
  • New Interest Rate7.85%
  • New Repayment amount$ 2895
  • Monthly addition of$ 865

The result provided is an estimate only. Please read our for more information.

Calculator Assumptions and Disclaimers

  • Calculations assume that details entered into calculator, including interest rates, do not change for the lifetime of the loan.
  • Interest is calculated by compounding on the same frequency as the repayment selected, i.e. weekly, fortnightly or monthly.
  • Months are assumed to be of equal length. However given some months are longer than others interest charged may vary depending upon the month.
  • One year is assumed to contain exactly 52 weeks or 26 fortnights. Thus each year has 364 days.
  • All calculations are estimates only; they are not guarantees, pre-qualifications or pre-approvals for borrowing. All results are based solely upon the data entered into the calculator.
  • Calculator does not include the cost of fees or other extra charges.
  • This calculator is for information purposes only. Any advice is general and has not taken into account your personal circumstances.Read our full disclaimer.

Interest rate change calculator

If cash rate increases
If cash rate increases
  • If you have a variable rate, your lender will probably raise your home loan interest rate (although it is allowed to act independently of the Reserve Bank).
  • If you have a fixed rate, your home loan interest rate will remain unchanged for the rest of your fixed-rate term.
If the cash rate holds
If the cash rate holds
  • If you have a variable rate, your lender will probably leave your home loan interest rate unchanged (although it is allowed to act independently of the Reserve Bank).
  • If you have a fixed rate, your home loan interest rate will remain unchanged for the rest of your fixed-rate term.
If the cash rate decreases
If the cash rate decreases
  • If you have a variable rate, your lender will probably lower your home loan interest rate (although it is allowed to act independently of the Reserve Bank).
  • If you have a fixed rate, your home loan interest rate will remain unchanged for the rest of your fixed-rate term.

Calculator Assumptions and Disclaimers

  • Calculations assume that details entered into calculator, including interest rates, do not change for the lifetime of the loan.
  • Interest is calculated by compounding on the same frequency as the repayment selected, i.e. weekly, fortnightly or monthly.
  • Months are assumed to be of equal length. However given some months are longer than others interest charged may vary depending upon the month.
  • One year is assumed to contain exactly 52 weeks or 26 fortnights. Thus each year has 364 days.
  • All calculations are estimates only; they are not guarantees, pre-qualifications or pre-approvals for borrowing. All results are based solely upon the data entered into the calculator.
  • Calculator does not include the cost of fees or other extra charges.
  • This calculator is for information purposes only. Any advice is general and has not taken into account your personal circumstances.Read our full disclaimer.

What is the RBA cash rate?

The cash rate is the interest rate the Reserve Bank of Australia (RBA) charges banks and other lenders on overnight loans. The RBA cash rate affects the interest rate banks charge their customers, as well as the rates of interest paid on savings accounts and term deposits. 

Eleven times a year, the Reserve Bank of Australia (RBA) meets to decide whether the cash rate should go up, down or remain the same – a decision which affects millions of Australians. The Reserve Bank decides what the national cash rate will be on the first Tuesday of every month, with the exception of January.

How does the RBA cash rate affect financial products?

Changes to the national cash rate often lead to changes in interest rates from banks and other financial institutions. A rising cash rate often leads to increasing interest rates, and cuts to the cash rate can see interest rates fall. 

Lower interest rates can be welcome news to borrowers with credit products, such as home loans, personal loans and car loans. Falling variable interest rates can mean cheaper loan repayments, easing pressure on household budgets, or giving borrowers an opportunity to pay off loans sooner. On the other hand, a rising cash rate can see variable interest rates increase for these loans, potentially leading to financial stress.   

Credit card interest rates aren’t typically affected by changes to the RBA cash rate. This is partially because credit cards are effectively unsecured loans, with higher interest rates required to help cover their higher risk.

Changes to the RBA cash rate can also affect savings products, such as savings accounts and term deposits. If the interest rates rise along with the cash rate, account holders may be able to earn more interest from their savings, growing their wealth faster. But if the cash rate falls and interest rates are cut, you may not earn as much interest on your savings.

Keep in mind that while changes to the cash rate can affect interest rates, it’s not the only factor in play. Banks and financial institutions have multiple funding sources, and may choose to raise or lower their interest rates out of cycle from the RBA

How often does the RBA cash rate change?

Looking back over the last few years, the RBA kept the cash rate on hold at 1.50% between 2016 and 2019, before making several 25-basis point cuts to help stimulate the Australian economy. This included a rare two cuts in March 2020 in response to the COVID-19 pandemic and recession, and a partial cut of 15 basis points to a record low of 0.10% in November 2020.

Starting in May 2022, the RBA began hiking the cash rate rapidly in response to high inflation. This included four back-to back 50-point hikes between June and September 2022, with 25-point hikes in the other months. The RBA has only kept the cash rate on hold in April and July 2023.

Before the most recent hiking cycle, the last time the RBA increased the cash rate was in November 2010, when the cash rate rose by 25 basis points to 4.75%.

When do banks pass on RBA cash rate changes?

Once the RBA has announced the cash rate is moving, lenders will decide whether they intend to pass this change on to their customers. Some banks may make this decision immediately, while others can take days, or even weeks to make an announcement.

One of the easiest ways to keep track of what each lender is doing is by following RateCity on Facebook, Twitter or on this page. RateCity’s RBA Cash Rate Tracker can help you find out when the RBA has changed rates and how it will affect you, including a comprehensive list of which lenders have moved their home loan interest rates following a change to the cash rate. You can also find out which lenders are offering the most competitive interest rates on the market, learn how to refinance your home loan and keep up-to-date of the latest RBA news.

So don’t sit around waiting for an email or a letter from your bank letting you know they’ve moved – our Rate Tracker page is updated as new rates are announced. 

Frequently Asked Questions

Who sets mortgage rates?

Mortgage rates are influenced by the official cash rate, which is determined by the Reserve Bank of Australia (RBA) at its monthly board meeting on the first Tuesday of every month, except for January.

The official cash rate is the interest rate that banks charge other banks to borrow money. If the RBA cuts the cash rate, the interest rate banks are charged when they borrow from other banks is reduced. Likewise, if the cash rate is hiked, the interest rate banks are charged will go up.

If banks can save money from reduced interest rates, they will often pass on some or all of these savings to their variable rate home loan customers – although they are not required to. They can also choose to pass on a cash rate rise by increasing mortgage interest rates.

How often do mortgage rates change?

Mortgage interest rates change based on two main factors: changes to the Reserve Bank of Australia’s (RBA) cash rate, and out-of-cycle rate hikes from your lender.

Generally, your home loan lender will change its mortgage rates in alignment with the RBA’s cash rate. On the first Tuesday of each month (excluding January) the RBA meets to decide whether the cash rate should increase, decrease, or stay on hold. If the cash rate changes, a lender’s variable interest rates should change in tandem.

Lenders may also change interest rates out-of-cycle with the RBA cash rate, with fixed rates and variable rates frequently hiked and cut at the lender’s discretion. To stay on top of changing mortgage rates, read the latest home loan news.

How much of the RBA rate cut do lenders pass on to borrowers?

When the Reserve Bank of Australia cuts its official cash rate, there is no guarantee lenders will then pass that cut on to lenders by way of lower interest rates. 

Sometimes lenders pass on the cut in full, sometimes they partially pass on the cut, sometimes they don’t at all. When they don’t, they often defend the decision by saying they need to balance the needs of their shareholders with the needs of their borrowers. 

As the attached graph shows, more recent cuts have seen less lenders passing on the full RBA interest rate cut; the average lender was more likely to pass on about two-thirds of the 25 basis points cut to its borrowers. 

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