Repayment change
Before and afterNow $4,051.24
After change $4,145.47
Extra repaymentper month
Like a $1,663 pre-tax pay cut on an $85,000 salary.
Home / Mortgage rate rise calculator
RBA decision: 29 September 2026
Mortgage rate rise calculator
A 0.25% rate rise adds about $94 a month to a $600,000 loan. See exactly what it means for your repayments, and how much of a pay rise you'd need to cover it.
What the RBA is deciding
The RBA announces its next cash rate decision on 29 September 2026 at 2:30pm AEST. The cash rate is currently 4.35% after three increases earlier in 2026, and the big four banks expect a 25 basis point rise. Lenders usually pass changes on to variable home loans, though timing and size are up to each lender.
How much a 0.25% rise adds by loan size
Monthly principal and interest repayments on a 25-year loan, going from 6.50% to 6.75%.
| Loan balance | Now | After rise | Extra a month | Extra a year |
|---|---|---|---|---|
| $300,000 | $2,026 | $2,073 | +$47 | +$565 |
| $400,000 | $2,701 | $2,764 | +$63 | +$754 |
| $500,000 | $3,376 | $3,455 | +$79 | +$942 |
| $600,000 | $4,051 | $4,145 | +$94 | +$1,131 |
| $700,000 | $4,726 | $4,836 | +$110 | +$1,319 |
| $800,000 | $5,402 | $5,527 | +$126 | +$1,508 |
| $1,000,000 | $6,752 | $6,909 | +$157 | +$1,885 |
| $1,250,000 | $8,440 | $8,636 | +$196 | +$2,356 |
| $1,500,000 | $10,128 | $10,364 | +$236 | +$2,827 |
Example rate only. Your lender's rate and your remaining term change the numbers, so use the calculator above for yours.
Why a rate rise hurts more than it looks
Mortgage repayments come out of your after-tax pay. On a 30% tax bracket plus Medicare, every extra $100 in repayments needs about $147 of pre-tax income to cover it. That's why the calculator shows the change as an equivalent pay cut. Check your take-home pay to see what's actually landing in your account.
Ways people soften the hit
Common options include putting spare cash in an offset account, asking your lender for a better rate, refinancing, or extending your loan term to lower repayments (you'll pay more interest over time). This is general information, not financial advice. Talk to your lender or a licensed adviser about your situation.
Common questions
How much does a 0.25% rate rise add to a $500,000 mortgage?
About $79 a month, or $942 a year, on a 25-year principal and interest loan at 6.50%. Use the calculator for your own balance, rate and term.
How much does a 0.25% rate rise add to a $600,000 mortgage?
About $94 a month, or $1,131 a year, on a 25-year principal and interest loan at 6.50%.
When will my repayments go up after an RBA rate rise?
Lenders decide whether and when to pass on a change. Most announce within days and apply it to variable loans within a few weeks. Your lender must tell you your new repayment in writing.
Does an RBA rate rise affect fixed rate loans?
Not until the fixed term ends. Your repayment stays the same during the fixed period, then moves to the lender's rate at that time.
What salary do I need to cover a higher mortgage repayment?
Because repayments come out of after-tax pay, you need a bigger pre-tax raise to cover them. On an $85,000 salary, covering an extra $1,131 a year in repayments takes about $1,663 more in gross pay.