Three weeks after the Reserve Bank lifted the cash rate on 29 September, the rise has reached almost every home loan in the country. For a growing number of borrowers, though, finding a better deal and being able to move to it have become two different things. Here's where rates have landed, why switching lenders is harder than it looks, and what you can still do if refinancing isn't on the table right now.
The short version
- RatesBoard says 30 of the 31 lenders it tracks have passed on the September rise, recorded between 3 and 16 October.
- RateSonar recorded 452 home loan rate changes at 43 lenders from 11 to 17 October: 442 rises and 10 cuts.
- BankMate says advertised variable rates averaged 6.49% as at 18 October, 1.89 points above the cash rate.
- Equifax says lender-switching (refinancing) fell 8.8% year on year in September, with serviceability tests “effectively locking” some borrowers in.
- The cash rate is 4.60%. Next RBA decision: 2:00pm Adelaide time, Tuesday 3 November.
The pass-through is almost done
In its 17 October update, RatesBoard said 30 of the 31 lenders on its board had passed the rise on, with changes recorded between 3 and 16 October. The big four (ANZ, CBA, NAB and Westpac) were recorded on 9 and 10 October. Bank Australia, Bank of Sydney and Qudos Bank were the last, on 16 October.
RateSonar, which logs individual product changes, recorded 452 home loan rate changes at 43 lenders in the week from 11 to 17 October: 442 rises and just 10 cuts. BankMate's October report says 37 lenders have raised rates this month and two have cut them.
If you haven't noticed a change yet, check your banking app or latest statement. As our 8 October article explained, the date your rate changes and the date your repayment changes aren't always the same, and our 9 October big four article covered what to look for on your next repayment.
Where rates have landed
Variable rates
BankMate says advertised variable rates for owner-occupiers paying principal and interest at an 80% loan-to-value ratio averaged 6.49% as at 18 October, across the 86 loans it tracks. That's 1.89 percentage points above the cash rate.
At the lower end, the lowest variable rate on RatesBoard's board as at its 17 October update was 6.09% advertised (6.10% comparison), from Greater Bank. Other databases track different lenders and loan types, so their lowest and average figures differ. Treat any “lowest rate” as a guide, not the rate you'll be offered.
Fixed rates
Fixed rates have been rising too. RatesBoard says 28 lenders have lifted at least one fixed rate since mid-September, by a net 0.05 to 0.60 percentage points. Unity Bank's 0.15-point cut to its two-year fixed rate on 16 October is the only fixed-rate cut it has recorded since the decision.
Canstar's weekly wrap, reported by Australian Broker on 13 October, said fixed rates starting with a “5” were gone from its database, and that more than 90% of lenders now offer their cheapest rate on a variable product.
What the rise costs, and what a rate gap costs
RatesBoard estimates that a 0.25 percentage point rise from 6.00% adds about $81 a month on a hypothetical $500,000, 30-year principal-and-interest loan. Our own check agrees: roughly $2,998 a month before and $3,079 after.
The bigger question for many borrowers now is not the rise itself, but how far their rate sits from what else is available. Here's a simple illustration on a $600,000 loan:
| Interest rate | Monthly repayment | Note |
|---|---|---|
| 6.25% | about $3,694 | Illustrative rate only |
| 6.75% | about $3,892 | Illustrative rate only |
| Difference (0.50 points) | about $197 a month | Roughly $2,370 a year |
Loanworth calculation, example only: $600,000, 30-year principal-and-interest loan, rounded. The rates are illustrations, not quotes or offers. Actual repayments vary by lender, loan and remaining term, and fees can change the overall cost.
That's why it's worth knowing your own rate, even if you have no plans to move.
Why switching lenders is getting harder
Data from credit reporting body Equifax, reported by AAP on 15 October, shows lender-switching (refinancing) fell 8.8% in September compared with a year earlier, after a nearly flat August. Overall mortgage demand was down 19.2% year on year. Our 13 October article looked at what the same release showed for first home buyers.
Equifax chief solution officer Kevin James put the refinancing slowdown down to serviceability:
“In the current economic climate, strict regulatory serviceability assessments appear to be holding borrowers in place. Many existing mortgage holders wanting to shop around for a better rate are likely finding themselves unable to clear the serviceability needed, effectively locking them into their current arrangements.”
Canstar's Sally Tindall made a similar point in the 13 October wrap: borrowers with straightforward loans may be able to get a better deal by refinancing or negotiating, but those with more complex arrangements, or whose financial position rules out a switch, could remain stuck for now.
How the serviceability test works
When you apply to a new lender, it has to assess whether you can afford the loan, and not just at the rate you'll actually pay. APRA, the banking regulator, requires banks to assess new borrowers at an interest rate at least 3 percentage points above the loan's rate. APRA confirmed in May that the buffer would stay at that level.
So each time rates rise, the rate you're tested at rises with them. On a 6.25% loan, a bank would assess repayments at 9.25% or more. On $600,000 over 30 years, that's about $4,936 a month at the test rate, compared with about $3,694 at the actual rate (Loanworth calculation, rounded, example only). Lenders also look at your income, living expenses, other debts and their own credit policies, so the result depends on your whole situation.
Your current lender doesn't re-run that test simply because you keep making repayments. That's how someone who is meeting their repayments comfortably can still find a new lender's assessment harder to clear than they expected.
What you can still do
Ask your current lender for a better rate
Lenders can and do review rates for existing customers. A rate review with your current lender generally doesn't involve the full application and assessment that moving to a new lender does. It helps to have a competing comparison rate handy. There's no guarantee your lender will agree, but it costs nothing to ask.
Know where you stand before you apply
If you're thinking about switching, it's worth understanding how a new lender is likely to assess you before you formally apply, because credit applications are recorded on your credit file. A broker can explain how assessment differs from lender to lender, though no one can promise an outcome before an application is assessed.
Compare the whole loan, not just the rate
Look at the comparison rate, ongoing and upfront fees, offset and redraw features, and the costs of leaving your current loan, such as discharge fees and any break costs on a fixed rate. A slightly cheaper rate without an offset account can end up costing more if you keep savings in your offset now. Our 10 October explainer shows how to read the comparison rate.
Fixed or variable?
With most lenders' cheapest rates now variable, and the September-quarter inflation figures due on 28 October ahead of the RBA's 3 November decision, it's reasonable to wait for that data unless a fixed rate already suits your budget. Check break costs and any limits on extra repayments before you fix. Our 17 October article explains how the RBA says it is weighing inflation against jobs.
If you're struggling, talk to your lender early
Lenders must consider hardship requests, and getting in touch before you miss a repayment usually leaves more options open. The free National Debt Helpline is on 1800 007 007.
Suncorp Bank customers: read your ANZ letters carefully
Suncorp Bank stopped taking new home loan applications on 7 October, according to RatesBoard, as its loans move to ANZ. Broker Daily reported on 16 October that Suncorp has warned some borrowers could face significant increases in their minimum repayments when their loans transition, particularly customers who have paid ahead on principal-and-interest loans or hold funds in cashback redraw.
Interest rates won't change at the time of migration, although future variable rates and margins may change under existing loan terms. Other changes reported include limits on offset accounts, a 24-month construction completion deadline and the removal of redraw access for home loans held in a company name. The migration is expected to be completed by June 2027. If you're a Suncorp customer, read any letter about the move closely and ask what your new minimum repayment will be.
Key dates
- Monday 19 October, 9:35am Adelaide time: RBA Assistant Governor Christopher Kent at the Commonwealth Bank's Global Markets Conference.
- Wednesday 21 October, 9:00am Adelaide time: Deputy Governor Andrew Hauser at Citi's Australia & New Zealand Investment Conference.
- Wednesday 28 October, 11:00am Adelaide time: ABS Consumer Price Index, September 2026.
- Tuesday 3 November, 2:00pm Adelaide time: RBA decision and Statement on Monetary Policy, followed by the Governor's media conference at 3:00pm Adelaide time.
Related reading
- Jobs are weakening, but inflation is still too high: the RBA's trade-off (17 October)
- First home buyers are stepping back (13 October)
- Advertised rate or comparison rate? (10 October)
- Big four variable rates rise: what changes on your next repayment (9 October)
- One rate rise, many start dates (8 October)
Not sure if your rate is still competitive?
Book a no-obligation chat and we'll look at the numbers with you: how your rate compares with what's being advertised, what to ask your current lender, and what a switch would involve. We'll start with general information, and if you want personal recommendations we'll do a proper fact-find first. There's no cost and no pressure.
Sources: RatesBoard, “The Best Home Loan Rates Available in October 2026”, 17 October 2026 (pass-through count and dates, lowest variable on its board, fixed-rate moves, $81 example, Suncorp applications). RateSonar, home loan rate changes 11–17 October 2026 (as at 17 October 2026). BankMate, October 2026 home loan rates report (as at 18 October 2026; owner-occupier, principal and interest, 80% LVR, 86 variable loans). Australian Broker, Mina Martin, “Lenders pass on RBA hike as fixed rates clear 6%”, 13 October 2026 (Canstar data and Sally Tindall comments). AAP, Annabelle Banfield, “Mortgage demand slump deepens despite price drop”, 15 October 2026 (Equifax September data and Kevin James comments). Australian Prudential Regulation Authority, “APRA maintains current macroprudential policy settings in highly uncertain environment”, 28 May 2026 (serviceability buffer). Broker Daily, Julian Barnes, “Broker policy round-up: Lender changes at a glance 8–15 October”, 16 October 2026 (Suncorp to ANZ). Reserve Bank of Australia, cash rate target (4.60%, effective 30 September 2026) and Coming Up calendar. Australian Bureau of Statistics, Consumer Price Index release calendar (next release 28 October 2026). Repayment examples: Loanworth calculations, rounded, example only.
General information only, not credit advice. It doesn't take your objectives, financial situation or needs into account.
Loanworth Pty Ltd (Credit Representative Number 547934) is a Credit Representative of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).