All major lenders have now raised variable rates after the September RBA hike: what it means for first home buyers

Australia's fifth-largest bank, Macquarie, raised its variable home loan rates by 0.25 percentage points today, 15 October 2026 - the last major lender to pass on the Reserve Bank's September cash rate decision to borrowers. All four big banks and Macquarie have now lifted variable mortgage rates in full, following the RBA's unanimous decision on 29 September to raise the cash rate to 4.60 per cent - its highest level since 2011 and the fourth increase of 2026.

Why every major lender acted in full

The RBA's September decision was unanimous. The Board said inflation, while easing from its 2022 peak, remained elevated. Annual inflation rose to 4.0 per cent in August, with the trimmed mean measure sitting at 3.6 per cent - both outside the 2-3 per cent target band. Board members said further restraint was needed to bring inflation sustainably back to target.

In the weeks that followed:

• Commonwealth Bank, ANZ and Westpac each announced they would pass on the full 0.25 percentage point rise to variable-rate borrowers, effective in early October.
• NAB followed, with its variable rates taking effect on 9 October 2026.
• Macquarie confirmed its variable home loan reference rates would rise by 0.25 per cent per annum, effective today, 15 October 2026.

Macquarie also confirmed that its savings and transaction account rates would rise on the same date. For anyone building a deposit, that is worth noting: higher interest rates make savings accounts and term deposits more attractive, which partially offsets the additional pressure on prospective buyers.

What the numbers mean for your budget

ANZ published a worked example to help borrowers understand the impact. For an owner-occupier with a variable principal-and-interest loan of $500,000, the September rate rise adds approximately $79 per month to repayments.

That is on top of the three earlier hikes already applied in 2026. For borrowers who have held a variable-rate loan throughout this year, the cumulative increase in monthly repayments is now substantial.

For first home buyers still at the saving stage, higher rates also change how much a lender will offer you. Banks assess your borrowing capacity using a buffer above the current standard variable rate. When rates rise, both the headline rate and the assessment hurdle move together, reducing how much you qualify to borrow against the same income and expenses.

Use the Borrowing Power Calculator to see how today's rate environment affects your maximum borrowing capacity based on your income and expenses.

Is another hike coming on Melbourne Cup Day?

The RBA's next cash rate decision falls on 3 November 2026 - Melbourne Cup Day. Whether the Board moves again is genuinely uncertain, and the four major banks are split on the outcome.

• ANZ and Westpac both expect a further 25 basis point increase on 3 November. That would take the cash rate to 4.85 per cent, its highest since 2008, and add around another $79 per month to a $500,000 loan.
• CBA and NAB expect the Board to hold in November, though neither has ruled out a further move if the data is unfavourable.

The September meeting minutes, released on 13 October, struck a cautious tone. The Board acknowledged that the risk of further rate increases had not passed and said it would closely monitor incoming data. That language kept the November hike call alive for ANZ and Westpac even as CBA and NAB moved to a hold forecast.

The most important number between now and 3 November is the September quarter CPI, due on 28 October at 11:30am AEDT. If inflation comes in higher than expected, the case for another hike strengthens. If it eases, a pause becomes more likely.

You can stress-test your repayments against both scenarios - hold or another rise - using the Interest Rate Shock Tester.

What this means for first home buyers

Whether you are still saving or actively looking to buy, the current rate environment shapes several practical decisions.

• Check your pre-approval still holds. A pre-approval granted two or three months ago may have been assessed at a lower rate. Ask your lender or mortgage broker whether your maximum borrowing capacity has changed since then.
• Your deposit is working harder. Higher-rate savings accounts and term deposits are more attractive than they have been in years. If you have not reviewed the rate on your savings recently, it is worth comparing what your current bank offers against others.
• The 28 October CPI matters for your timeline. If inflation surprises upward, the November meeting becomes more likely to deliver another hike. Understanding how a further rise would change your repayments ahead of that date puts you in a better position to make decisions quickly.
• Fixed rates are worth comparing again. With the outlook genuinely split, some buyers choose to lock in a fixed rate for certainty over the next one to three years. A mortgage professional can help you weigh the options for your specific situation.
• Offset accounts become more valuable in a high-rate environment. Every dollar parked in an offset account reduces the interest charged on your loan at the current, higher rate. The benefit of an offset scales with the rate - so the calculus has shifted since low-rate days.

Run the numbers

Use these tools to understand how the current rate environment affects your situation:

• Interest Rate Shock Tester - see how your repayments change if rates rise another 0.25 percentage points in November, or model a future cut
• Borrowing Power Calculator - check how much you may be able to borrow at today's rates with your income and expenses
• Mortgage Offset Calculator - see how an offset account could reduce the interest you pay over the life of your loan in a higher-rate environment