RBA Rate Rise November 2026: What It Means for Your Mortgage Repayments
The RBA rate rise in November 2026 has pushed mortgage costs to their highest level in almost two decades. On Tuesday 3 November 2026, the Reserve Bank of Australia lifted the cash rate by 0.25 percentage points to 4.85%. It is the fifth rise of 2026 and the highest cash rate since late 2008.
If you have a variable home loan, your repayments are likely to increase. As mortgage brokers in Perth, we’re hearing the same questions from borrowers every day.
Why did the RBA raise interest rates in November 2026?
The RBA pointed to elevated inflation, the war in the Middle East and rising oil prices as the reasons for the rise. The decision was split: six board members voted to increase the cash rate, and three voted to hold it at 4.60%.
How much will my mortgage repayments go up?
The table below shows the approximate monthly increase from the November rate rise. It assumes a 30-year principal and interest loan, with the rate moving from 6.50% to 6.75%.
| Loan amount | Monthly repayment increase (approx.) |
|---|---|
| $400,000 | $66 |
| $600,000 | $99 |
| $750,000 | $124 |
| $1,000,000 | $165 |
The full picture for 2026 is bigger. Before November, the RBA had already raised rates four times this year, from 3.60% to 4.60%. On a $600,000 loan, all five rises combined add roughly $480 a month to mortgage repayments.
Figures are illustrative only. Your actual increase depends on your rate, balance, loan term and loan type.
When will my bank increase my home loan interest rate?
Most lenders apply an RBA rate rise to variable home loans within one to three weeks of the decision. Your lender must notify you before your repayments change, so check your email, banking app or mail for a rate change notice.
If you have a fixed rate home loan, your repayments stay the same until the fixed term ends. When it does, the loan usually rolls onto a higher variable revert rate. Review your options at least two to three months before your fixed rate expires.
Will interest rates go up again?
Many economists expect a pause. Westpac economists believe the RBA will hold in December and see 4.85% as the likely peak of this cycle. The RBA’s latest statement also dropped its earlier wording about raising rates further if needed.
Others are less certain. BetaShares economist David Bassanese has said two more rate rises in the first half of next year can’t be ruled out. The next RBA cash rate decision is on Tuesday 8 December 2026.
When will interest rates go down in Australia?
The RBA hasn’t signalled any rate cuts. Its latest forecasts show inflation returning to the middle of its target range around mid-2028. Borrowers should plan their budgets around current rates rather than waiting for relief.
Should I refinance my home loan after the rate rise?
If you haven’t reviewed your home loan in the last 12 months, you may be paying more than you need to. Lenders often offer their sharpest rates to new customers, which can leave loyal borrowers on higher rates.
Before you refinance, consider:
- Break costs if you’re on a fixed rate
- Discharge and application fees
- Lenders mortgage insurance (LMI) if you owe more than 80% of your property’s value
- Borrowing capacity, because you’ll need to qualify again at today’s higher rates
Sometimes the best result is a rate review with your current lender, without switching at all. A mortgage broker can compare both options and show you the real saving.
Fixed vs variable home loan: which is better right now?
There’s no single right answer. It depends on your cash flow and plans.
- Fixed rate home loan: certainty over your repayments, which is useful when your budget is tight.
- Variable rate home loan: flexibility, with offset accounts and extra repayments, and you benefit straight away if rates fall.
- Split home loan: part fixed and part variable, so you get some certainty and some flexibility.
How do rising interest rates affect my borrowing capacity?
Higher interest rates reduce how much you can borrow. Lenders assess your application at a rate above the actual rate, so each rise lowers your borrowing limit. If you’re planning to buy a home or an investment property, get your borrowing capacity checked again before you make an offer.
Mortgage stress: what to do if you can’t afford your repayments
If you’re feeling mortgage stress, contact your lender early, before you miss a payment. Lenders have financial hardship processes and may be able to:
- Temporarily reduce your repayments
- Switch you to interest-only for a short period
- Extend your loan term
Acting early gives you more options and helps protect your credit file.
How to get a lower interest rate on your home loan
- Check your current rate against rates offered to new customers.
- Call your lender and request a rate review.
- Ask a mortgage broker to compare your loan across a wide panel of lenders.
- Use an offset account to reduce the interest you pay.
- Make extra repayments when your budget allows.
Why use a mortgage broker in Perth?
A local mortgage broker compares loans from many lenders, handles the paperwork and negotiates on your behalf. At Financehub Co, we help borrowers across Perth, including Morley and the northern suburbs, with home loans, refinancing, investment loans and more. Our directors, Tung Nguyen and Edy Hartono, bring 20+ years of combined lending experience, including years working inside the banks.
Frequently asked questions
What is the RBA cash rate now?
The RBA cash rate is 4.85%, following the 0.25 percentage point rise on 3 November 2026. It is the highest cash rate since late 2008.
How much will a 0.25% rate rise add to my mortgage?
On a $600,000 principal and interest loan over 30 years, a 0.25% rise adds about $99 a month. On a $1,000,000 loan, it adds about $165 a month.
When is the next RBA meeting?
The next RBA cash rate decision is on Tuesday 8 December 2026.
Is it a good time to refinance my home loan?
If you haven’t reviewed your loan in the past year, it’s worth checking. A mortgage broker can compare your current rate with what’s available and confirm whether refinancing saves you money after fees.
Do fixed rate home loans go up when the RBA raises rates?
No. Your fixed rate stays the same until the fixed term ends. New fixed rates offered by lenders may change, though.
Talk to Financehub Co
If you’re concerned about rising rates, give us a call. We’ll review your loan, explain your options in plain English and help you plan with confidence.
Talk to us today
Edy Hartono: 0452 520 430 | edy@financehubco.com.au
Tung Nguyen: 0423 339 015 | tung@financehubco.com.au
Book a chat: www.financehubco.com.au
FinanceHub Co: One Hub, One Stop Finance
Disclaimer: This article is general information only and does not consider your personal or business objectives, financial situation or needs. It is not tax or legal advice. Speak to your accountant about tax treatment, and all finance is subject to lender approval, terms and conditions. The Corporate Credit Representative Number (CRN) for FINANCEHUB CO PTY LTD is 577025, under Connective Credit Services Australian Credit Licence (ACL) #389328. Member of MFAA.
