Banks pass on the November 2026 RBA hike — what to do before your repayment rises

The cash-rate decision is done. The repayment letter is next.

On 3 November 2026 the Reserve Bank of Australia raised the cash rate target to 4.85% — a 25 basis-point increase and the fifth rise of 2026 (RBA media release 2026-30). Within a day, major lenders publicly said they would pass the increase on to variable home loans. ABC News (4 November 2026) reported Westpac, NAB, ANZ and CBA applying the new rate from 13 November, with Macquarie signalling 19 November for its variable home-loan products.

If you already read our November RBA hike review guide, this article is the sequel: what to do in the short window before your lender’s new repayment starts.

This is general information only. It is not personal credit advice. Approval, pricing and hardship outcomes are never guaranteed.

What “pass-on” actually means

The RBA sets the cash rate target. Your home loan rate is set by your lender under your contract.

After a cash-rate rise, lenders decide:

• whether to change variable rates,
• by how much,
• and from which effective date.

A full 0.25 percentage-point pass-on is what the Big Four and Macquarie publicly announced after this hike, but product pricing, discounts and packages still differ. The only rate that matters this week is the one on your notice.

Fixed-rate borrowers usually keep the contracted fixed rate until the fixed period ends — then the loan typically rolls to a variable rate that already reflects the cycle. Check your contract and any roll-to product disclosure.

Illustrative repayment maths (not your quote)

ANZ’s public illustration after the November decision used about $79 a month more on a $500,000 owner-occupier principal-and-interest loan (ABC News). Treat every figure as illustrative.

Your change depends on balance, remaining term, rate type and repayment frequency. Use your lender’s new scheduled repayment, or model scenarios in our mortgage calculator and refinance playground.

A calm checklist before mid-November

1. Read the official RBA decision once

Primary source: Statement by the Monetary Policy Board — 3 November 2026. Note the 4.85% target, the 6–3 vote, and the revised inflation outlook. Skip social clips that confuse the cash rate with every advertised home-loan rate.

2. Capture your lender’s notice

Look for:

• old rate → new rate,
• effective date,
• new repayment amount and frequency,
• whether offset or package fees also change.

If you cannot find a notice within a few business days of the decision, log into internet banking or call the lender and ask for the written rate-change advice.

3. Update cashflow before the debit hits

Map the new repayment against:

• rent or board if relevant,
• other variable debts (cards, personal loans, car finance) that may also reprice,
• essential living costs,
• any buffer you were using for rate rises.

If the buffer is gone, escalate early — see hardship below.

4. Ask for retention in writing

Before you chase a shiny advertised rate elsewhere, ask your current lender:

“Please confirm my new variable rate from [effective date] and advise in writing whether any retention or discount is available on my existing loan.”

Existing-customer pricing often lags new-customer offers — the so-called loyalty gap. A written retention offer is the clean baseline for any refinance comparison.

5. Only then compare a switch — term for term

Use our refinancing service overview and refinance playground to compare:

• interest rate and comparison rate,
• fees and discharge costs,
• features (offset, redraw, extra repayments),
• remaining term held constant.

A lower monthly figure that quietly resets you to 30 years can raise lifetime interest even when the rate looks sharper. See also the term-reset trap.

6. Decide: stay, retain, refinance — or seek hardship help

First-home buyers and pre-approvers

Higher variable rates can reduce borrowing capacity even when your income is unchanged. If you hold pre-approval:

• ask whether the approval still stands after the rate change,
• re-check maximum purchase price before you bid,
• revisit deposit, LMI and scheme pathways on the first home buyer hub and first home buyer loans.

Do not treat an old pre-approval letter as a fixed promise.

Investors

Revisit rent coverage against the new repayment, interest-only expiry dates, and portfolio buffers. Our investment loans page and investor tools are starting points — tax treatment needs your own adviser.

What not to do this week

• Do not refinance on a social-media “must switch today” post.
• Do not ignore a hardship problem until the first missed debit.
• Do not compare rates without fees and remaining term.
• Do not assume fixed loans “don’t matter” — note the roll-off date.

Practical next step with Azure Home Loans

If you want a calm file review before the higher repayment lands:

1. Gather your current rate, remaining term, balance and the lender notice.
2. Enquire online or call 0400 77 77 55.
3. Say clearly: “November pass-on — please review retention vs refinance on my remaining term.”

Same-business-day replies are typical for new enquiries on business days. We compare lenders; we do not invent approvals.

Related reading

• RBA lifts cash rate to 4.85% — review your home loan before you panic
• The 48-basis-point loyalty gap — EOFY refinance check
• Refinance term-reset trap
• Mortgage hardship rights and options

Disclaimer: General information only for Australian audiences. Not personal credit, legal, tax or financial-planning advice. Rates, fees, eligibility and hardship outcomes vary by lender and borrower. Confirm primary sources on rba.gov.au and your own loan documents before acting.