Borrowers brace for mortgage pain as RBA hikes kick in from today
13 Feb 2026
The majority of variable borrowers across the country have had their mortgage rate increased this morning as big four banks CBA, NAB and ANZ raised rates by 0.25% on the back of last Tuesday’s cash rate hike.
Westpac variable mortgage customers will see their rates rise on Tuesday (17 February). When all four big banks’ new rates are in effect, it will offer the lowest advertised variable rate out of the majors.
Big four banks’ lowest home loan rates, post RBA hike
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| When | Old rate from |
New rate from |
|
|---|---|---|---|
| CBA | Today | 5.34% | 5.59% |
| Westpac | Tues 17 Feb |
5.24% | 5.49% |
| NAB | Today | 5.69% | 5.94% |
| ANZ | Today | 5.50% | 5.75% |
Source: www.canstar.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.
ANZ hikes fixed rates alongside variable
In addition to the variable hikes this morning, ANZ has increased fixed rates by up to 0.40% on its owner-occupier principal and interest rates.
ANZ changes to its lowest fixed rates
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| Term | Old rate |
New rate from |
Change % pts |
|---|---|---|---|
| 1-year | 5.49% | 5.89% | +0.4 |
| 2-year | 5.44% | 5.79% | +0.35 |
| 3-year | 5.64% | 6.04% | +0.4 |
| 4-year | 5.89% | 6.09% | +0.2 |
| 5-year | 5.89% | 6.24% | +0.35 |
Source: www.canstar.com.au. Notes: rates for owner-occupiers paying principal and interest. LVR requirements apply.
As a result of these changes, Westpac now offers the lowest fixed rate out of the majors at 5.49% for a 1-year term.
Big four banks’ lowest fixed rates
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| CBA | Westpac | NAB | ANZ | |
|---|---|---|---|---|
| 1-year | 5.94% | 5.49% | 5.74% | 5.89% |
| 2-year | 5.79% | 5.59% | 5.79% | 5.79% |
| 3-year | 6.04% | 5.69% | 5.84% | 6.04% |
| 4-year | 6.09% | 5.89% | 5.99% | 6.09% |
| 5-year | 6.24% | 5.89% | 6.09% | 6.24% |
Source: www.canstar.com.au. Rates based on owner occupier fixed rate loans. LVR requirements apply.
As a result of the hikes, Canstar’s analysis of owner-occupier rates shows:
Variable:
- 5.77% is estimated to be the new average owner-occupier variable rate.
- 5.50% will be a competitive owner-occupier variable – over 40 lenders estimated to offer this.
- 5.25% is likely to be the new lowest variable rate, once all the RBA hikes are made.
Fixed:
- No lenders are now offering a fixed rate under 5%.
- 5.09% is the lowest fixed rate on Canstar, available from The Mac on a 1-year term.
- Seven lenders are offering fixed rates under 5.25%.
Rates rise from today but mortgage repayments will stay put for at least a couple of weeks
While the majority of borrowers will see their rate rise from this morning, those paying the minimum on their monthly repayments won’t see it increase straight away.
Lenders must send customers a letter before adjusting their repayment and give them time to prepare for this higher amount. The big four banks provide the following notice after a customer has received their letter:
- CBA: minimum of 20 days’ notice.
- Westpac: minimum of 30 days’ notice.
- NAB: minimum of 30 days’ notice.
- ANZ: minimum of 30 days’ notice.
What if you can’t meet the new repayment amount?
Borrowers who think they might not be able to afford their mortgage should take the following steps:
- Ask for a rate review. If you aren’t in a position to refinance, that doesn’t preclude you from asking for a rate cut from your own bank.
- If you secure a rate reduction, check your new minimum monthly repayments to see if you can clear this amount.
- If you can’t, call your bank, tell them you will have trouble meeting your new repayments and ask what your options might be. Do this before you miss a repayment.
- Get independent financial advice to make sure you’re on the right track.
What are some of the options the bank might offer?
Banks are required to offer support to customers struggling to meet repayments. Potential options for home loan support might include:
- Switching to interest-only for a year or two.
- Making reduced payments for a period of time.
- Extending your loan term.
While each of these options can help reduce a customer’s minimum monthly repayments, they can be very costly in the longer term. It’s important to get independent advice before going down this road.
For example, if an owner-occupier with $600,000 owing and 25 years remaining on their loan switched to interest-only repayments for the next two years, they would see their minimum monthly repayments drop by $567 – a sizable amount. However, by not paying down their debt for two years, they would end up paying up to $27,982 extra in interest over the remainder of their loan – a significant sting in the tail.
Extending the loan term can potentially be even more costly. If the same borrower increased their loan term by five years back to a 30-year term, their minimum monthly repayments would drop by $274, however, it could add a gigantic $134,703 extra to their interest bill as a result of those additional five years.
Impact of switching or extending $600,000 loan
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| Change to minimum monthly repayment |
Extra cost over life of loan |
|
|---|---|---|
| Switch to interest-only for 2 years |
-$567 | +$27,982 |
| Extend loan term by 5 years |
-$274 | +$134,703 |
Source: www.canstar.com.au. Notes: based on an owner-occupier paying principal and interest on the average P&I rate of 5.73%, and an interest-only rate of 6.40% (Canstar estimates of RBA data). Assumes there is one more rate increase as per CBA’s cash rate forecast. Does not factor in extra repayments.
Canstar’s Data Insights Director, Sally Tindall, says, “Variable borrowers across the country are now having to face the cold hard truth: rates are on the rise and unlikely to be coming back down any time soon.”
“If you’ve got a variable mortgage, understand what your new minimum monthly repayment is and make sure you can clear this amount.
“Now is the time to be proactive. For an owner-occupier who’s paying down their debt, a competitive rate is now around 5.50 per cent, but, once the dust settles, we expect the market leader to sit closer to 5.25 per cent. If you’re sitting on a rate starting with a 6, there’s no sugar coating it: you’re paying a loyalty tax.
“Rates, as a whole, are on the rise, but that doesn’t mean the banks won’t negotiate on an individual basis. If you haven’t asked for a rate review in the last six months, pick up the phone or fire off a request from your banking app asking for one.
“For those staring down the barrel of unaffordable repayments, it can be hugely tempting to switch to interest-only payments or extend out your loan term. While these moves offer immediate relief, potentially dropping repayments by hundreds of dollars, they can come with a massive sting in the tail.
“For someone with a $600,000 debt and 25 years remaining on their loan, extending your loan term by five years might see your minimum repayments drop by $274 a month, but it could cost you over $134,000 extra over the life of your loan.
“These are expensive lifelines. Before you sign up for years of extra debt, call your bank and demand a better rate. It’s one of the best ways to lower your repayments without increasing the total cost of your loan.”
Compare products, monitor your credit score, track interest rate changes, and access the deals, download the Canstar App.
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
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