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Reserve Bank cash rate decision: what does it mean for your home loan?

A cash rate rise often leads to higher variable home loan rates, but whoever provides your loan decides whether, when and by how much its rates change, and a fixed rate doesn't change during its fixed period. That's the same whether your loan is with a bank, a non-bank lender or a mortgage manager. Check whether your rate is fixed or variable, look out for any notice of a change, and contact your lender or mortgage manager early if repayments become hard to manage.

Last updated 14 November 2026 · Reviewed by 360 MMS Compliance

At a glance

A cash rate rise often flows through to variable home loan rates, but your lender decides whether, when and by how much your rate changes.
A fixed rate doesn't change during its fixed period. When the fixed period ends, the loan usually moves to a variable rate.
Non-bank lenders and mortgage managers don't take deposits, and their wholesale funding costs are linked to market interest rates, so their variable rates can move too.
If your repayments become hard to manage, contact your lender or mortgage manager early. You can ask for help because of financial hardship.

What happened at the latest Reserve Bank meeting?

At its meeting on 3 November 2026, the Reserve Bank of Australia's Monetary Policy Board raised the cash rate target. In its statement, the Board said:

inflation remains high and broad-based, and the forecast for inflation has been revised up;
higher fuel and other commodity prices are feeding into the prices of other goods and services;
further tightening was needed to bring inflation back to target, and the Board will keep watching the data to guide its decisions.

The Reserve Bank's media release has the full statement. The rest of this guide explains what any change in the cash rate can mean for your home loan.

What is the cash rate, and why does it affect home loans?

The cash rate is the interest rate on overnight loans between banks and other financial institutions. The Reserve Bank sets a target for it, and it strongly influences other interest rates, including what lenders pay to fund their loans. When the cash rate goes up, funding usually costs more, and lenders often pass some or all of that on through higher variable rates. It isn't automatic: market conditions, competition and risk also affect the rates lenders charge.

Will my variable rate go up after an RBA rise?

It may. A variable rate can go up or down, and your lender decides whether to change it, when and by how much. Many lenders move their variable rates after a cash rate change, but the timing and size can differ from the Reserve Bank's move.

Any change to your variable rate is notified as your loan contract sets out, and your repayments may change with it. Check your online banking or client portal and your loan documents for your current rate and repayments.

Fixed, variable or split: what a cash rate rise means

Question	Variable rate	Fixed rate	Split loan (part fixed, part variable)
Does my rate change after a cash rate rise?	It may: your lender decides whether, when and by how much	Not during the fixed period	The variable part may change; the fixed part doesn't during its fixed period
What happens to my repayments?	They may go up if the rate rises	They stay the same until the fixed period ends	Only the variable part's repayments may change
Can I make extra repayments?	Usually, yes	Limits and break costs can apply	Usually on the variable part
What if I pay out the loan early?	Discharge fees can apply	Break costs may apply, as well as discharge fees	Break costs may apply to the fixed part

Does a rate rise affect non-bank lenders and mortgage managers differently?

Not in principle. Banks fund their loans partly from customer deposits. Non-bank lenders and mortgage managers don't take deposits: their loans are funded from wholesale funding, and the cost of that funding is linked to market interest rates, which the cash rate strongly influences. So a cash rate rise can flow through to their variable rates too, although each lender or funder sets its own rates and timing.

Your protections are the same: responsible lending laws cover home loans for personal or residential investment purposes, whoever provides them, and so does the right to ask for hardship help on regulated consumer credit.

What if my repayments become hard to manage?

Talk to your lender early. Acting early gives you the most options, so please don't just stop paying without talking to them. If your loan is regulated consumer credit, such as a loan for a home you live in or a residential investment property, you can ask for a change to your repayments because of financial hardship, and the request must be considered. Ask how any change would affect the total cost of your loan.

The National Debt Helpline offers free, confidential financial counselling. If your loan is with us, our help centre explains how to ask for hardship help, or you can contact our team.

What are the pros and cons of fixing your rate when rates are rising?

Possible pros:

Your repayments stay the same for the fixed period, which can make budgeting easier.
You're protected from rate rises during the fixed period.

Possible cons:

You won't benefit if rates fall during the fixed period.
Break costs may apply if you change or pay out the loan early, and extra repayments can be limited.
Fixed rates on offer may already allow for expected rises, so fixing doesn't always cost less.

Neither option is right for everyone. Your broker can compare fixed, variable and split options for your situation.

What should I do after a rate rise, step by step?

Check your rate type. Your loan documents show whether your rate is fixed or variable and when any fixed period ends.
Look out for any notice. A change to a variable rate is notified as your loan contract sets out.
Check your new repayment. Use your online banking or client portal, or Moneysmart's mortgage calculator.
Review your budget. Make sure your repayment account has enough money before each due date.
Talk about your options. Ask your broker or lender about a rate review, extra repayments, fixing or splitting the loan, or refinancing, and what each would cost.
Watch for scams. Never change your repayment details because of an email or text without calling your lender first.
Ask for help early. If repayments are getting hard, contact your lender or mortgage manager before you miss one.

How can 360 MMS help?

360 MMS is a mortgage manager. Its home and commercial loans are funded by wholesale institutional funders and arranged through accredited mortgage brokers or directly. If your loan is with us, we can help with:

Your rate and repayments: in the online banking service named in your welcome email, or your client portal. The login links are in our help centre.
A rate review: ask our team, and we'll ask our funding partner to review your interest rate.
Changing your repayments: the amount, date or account, with a form for everyone on the loan to sign.
Fixing or switching: you can ask to fix your rate or switch between interest-only and principal and interest. The request is assessed, and a different interest rate may apply.
Financial hardship: our Customer Hub team helps with hardship requests. Talk to us early.

FAQs

What does an RBA rate rise mean for my home loan with a non-bank lender?

It can mean a higher variable rate, just as with a bank. Non-bank lenders and mortgage managers don't take deposits, and their funding costs are linked to market interest rates, but each decides whether and when to change its own variable rates. A fixed rate doesn't change during its fixed period. If your loan is with 360 MMS, a mortgage manager, any change to a variable rate is notified as your loan contract sets out.

Will my variable rate go up after the RBA rise?

It may, but it isn't automatic. Your lender decides whether, when and by how much to change a variable rate, and the change can differ from the Reserve Bank's move. Any change is notified as your loan contract sets out, so check your online banking or client portal and your loan documents.

Does a cash rate rise change a fixed rate home loan?

Not during the fixed period. Your rate and repayments stay the same until it ends, and then the loan usually moves to a variable rate, which may be higher than the rate you've had, unless you fix again. Check your loan documents for when your fixed period ends. Changing or paying out a fixed rate early can mean break costs.

Can I ask 360 MMS for a rate review?

Yes. Ask the 360 MMS team and we'll ask our funding partner to review your interest rate. If another lender has offered you a lower interest rate, include the written offer.

What should I do if I can't afford my higher repayments?

Contact your lender as early as you can, before you miss a repayment. If your loan is regulated consumer credit, you can ask for a change to your repayments because of financial hardship, and the request must be considered. 360 MMS customers can contact our team through the contact page or help centre.

Should I fix my rate after a rate rise?

It depends on your situation. Fixing gives certainty for the fixed period, but you won't benefit if rates fall, break costs may apply, and fixed rates may already allow for expected rises. Your broker can compare fixed, variable and split options for you.

Worried about a rate rise?
If your loan is with 360 MMS, talk to our team early. If you're looking at a new loan or refinancing, an accredited broker can compare your options.
Talk to our team →

Keep reading:Help centre · Refinancing with a mortgage manager · What is a mortgage manager? · Residential home loans · Scams and security

Home loan repayment calculator: see how a different rate changes your repayments.

Sources and further reading:Reserve Bank of Australia: Monetary Policy Decision, 3 November 2026 · Moneysmart: Fixed vs variable home loan interest rates · Moneysmart: Problems paying your mortgage

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. All loans are subject to lending criteria, and fees and charges apply. Kuone Pty Ltd T/As 360 MMS (ABN 81 621 683 672), Australian Credit Licence 504193.

On this page

What happened at the latest Reserve Bank meeting?What is the cash rate, and why does it affect home loans?Will my variable rate go up after an RBA rise?Fixed, variable or split: what a cash rate rise means Does a rate rise affect non-bank lenders and mortgage managers differently?What if my repayments become hard to manage?What are the pros and cons of fixing your rate when rates are rising?What should I do after a rate rise, step by step?How can 360 MMS help?FAQs Next steps

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