My lender has raised my rate: What are my options?

Lenders usually pass cash rate rises on to their variable rates, often in full. That adds up quickly when rates rise several times in a short period, as they have in 2026. This doesn't mean you're stuck. There are always better deals on the market. Even if your lender has passed on every rise, other lenders may still offer lower rates. And many of those will have very attractive offers for new customers. This gives you 2 options: Call your lender and ask for a better deal. This is a pretty simple trick and often works great if you see that your lender has a lower interest rate for new borrowers on its website. Just make sure your loan type is the same as the new one, so it's a fair comparison. Call your lender and ask for a better deal. If your lender won't budge, tell it you're going to refinance. Refinance your home loan. Switching mortgages is easier than you think. Start by checking out interest rates and then start the refinancing process by applying for the new loan.

How do you calculate an increase in interest rate?

To work out how much a rate hike will cost you, you need your loan amount, remaining loan term and the old and new interest rates. Then you can use the calculator above to get a simple estimate. The calculator simply tells you the difference in monthly repayments between the old and new rate. This doesn't include the cost of any ongoing loan fees you may have, but it's a simple way to calculate the impact of rate changes.

Will interest rates keep rising?

Rates have kept rising: the RBA has increased the cash rate four times in 2026, most recently to 4.60% in September. Further rises are possible, but it's hard to know at this point in time. The cash rate is decided based on a few different economic factors, so the RBA will wait to see how those play out over the coming months. Until the last few months of 2025 it was expected there would be further rate decreases, proving how quickly the landscape can change.

Home loan rate rise calculator: See your payment changes

The RBA has raised the cash rate four times in 2026 (February, March, May and September), taking it to 4.60%, which means variable home loan interest rates are rising.
If you're on a variable rate home loan you can use Finder's calculator to see how much your repayments will increase by.
If more rate rises are announced throughout 2026, home loans will continue to rise. So it's important to keep track of your rate changes and make sure you can afford them.

Home loan rate rise calculator

Rate rise calculator

See what a change to your interest rate does to your home loan repayments - and whether refinancing could work out lower.

What is your repayment type?

What is your current remaining loan amount?

What is your current interest rate?

% p.a.

What rate change are you anticipating?

How long is currently remaining on your loan? 25 years

How your loan pays off

At your current rate
After the rise

Your new rate

5.55% p.a.

▲ Up 0.25% · 25 bp

Repayment change

+$0 a month

That's $0 more a year

Current repayment per month: $0
New repayment per month: $0
Interest change over term: —

See what you could save

These home loans in Finder's database work out cheaper than your new repayment. Repayments are estimates based on your loan amount and remaining term.

Lender	Rate	Monthly repayment	You could save

How we calculated this

Loan amount and remaining term: taken from what you entered.
Current repayment: calculated using the interest rate you entered (or, if you didn't enter one, the market average variable rate published by the RBA for owner-occupier P&I loans, refreshed monthly).
New repayment after rate change: applied to the same balance and remaining term, using the rate change you selected.
"You could save" figures: the difference between your new repayment and each lender's advertised variable rate for a comparable loan in Finder's database, holding your balance and remaining term constant.
Long-term interest and savings: totalled over your remaining term in nominal dollars - the actual cash you'd pay or save. This matches ASIC's Moneysmart mortgage switching calculator; loan comparisons are shown as real cash outflows, not inflation-adjusted balances. Present-value discounting under ASIC Instrument 2026/41 applies to accumulation-style projections (super, investment balances) where purchasing power of a future balance matters - not to loan cash-flow comparisons.
Assumptions: repayments are principal-and-interest, made monthly, with no additional repayments, redraws or offset balances. Lender fees, LMI and government charges are not included. Rates shown are advertised rates and may not reflect what you're offered after credit assessment.
Data freshness: home loan rates are pulled from Finder's product database, updated regularly by our home loans team. Comparison rates are calculated on a $150,000 loan over 25 years unless the lender publishes a different basis.

If your loan is interest-only, these estimates won't be accurate for your cash-flow position. Use an interest-only calculator instead, or speak to a broker.

These figures are estimates, not quotes. Monthly repayments are calculated from the loan amount and remaining term you entered, using each lender's advertised variable rate on a principal-and-interest basis. Actual repayments will differ once the lender assesses your application and will depend on fees, your loan-to-value ratio and any future rate changes. If your existing loan is interest-only, the "You could save" figures won't reflect your real cash-flow change - compare on rate alone. All figures are shown in nominal dollars - the actual cash you'd pay or save across the loan term. This matches ASIC Moneysmart's approach for its mortgage switching calculator. See the assumptions panel for the full methodology.

Estimates only, not quotes. Repayments assume principal-and-interest and your entered loan amount and term. Figures are in nominal dollars over the loan term. Tap "How we calculated this" for details.

General advice warning. The information on this page is general in nature and doesn't take your objectives, financial situation or needs into account. Before acting on it, consider whether it's appropriate for you and read the lender's Key Facts Sheet, Target Market Determination and Credit Guide. Home loan rates, fees and features can change without notice. We recommend you speak to a licensed mortgage broker or financial adviser before deciding to refinance. Hive Empire Pty Ltd (ACL 385509) provides factual information and general advice only - not personal advice or a credit recommendation.

General advice only. This info doesn't consider your personal situation. Read each lender's Key Facts Sheet and consider speaking to a mortgage broker before refinancing. Hive Empire Pty Ltd, ACL 385509.

Compare more refinance rates

How to use the rate rise calculator

Enter the following details into the calculator (or estimate them if you don't know):

Select your repayment type. Most borrowers have principal-and-interest repayments. This means you're paying back the loan plus interest. If you're not sure, just select that option for now. If you have an interest-only loan you're just paying the interest charge every month but not actually repaying the loan yet.
Enter your remaining loan amount. Check your latest home loan statement and see how much you have left to repay on your home loan.
Enter your current interest rate. Again, your home loan statement should have your current interest rate.
Enter the rate change. This is the amount your rate will be changing by. This is usually 0.25%, but some lenders can vary their rate changes by more or less.
Enter your remaining loan term. Most home loans have a 30-year term. Estimate how long you have left on your loan, to the nearest year.

Home loan repayment struggles

According to Finder data, 35% of homeowners struggled to pay their mortgage in January 2026.
12% say they've missed one or more mortgage repayments in the last 6 months. 28% of those people say it was down to interest rate increases. 41% said it was because they ran out of money.

Source: Finder's Consumer Sentiment Tracker

What impact does a rate rise have on my home loan?

Even a small increase in interest rates can have a big impact on your monthly repayments.

The impact of a 0.25% increase on a home loan

The Reserve Bank of Australia (RBA) has increased the cash rate four times in 2026, most recently in September. Changes to the interest rate are usually 0.25% each time.

Let's take a look at how much one increase could impact home loan repayments.

Here's the original loan:

Loan details
Remaining loan amount	$630,000
Remaining loan term	26 years
Interest rate	5.25%
Monthly repayment	$3,706

Now let's try that again with a 0.25% higher rate. Every other loan detail is the same.

Loan details
Remaining loan amount	$630,000
Remaining loan term	26 years
Interest rate	5.50%
Monthly repayment	$3,800

Here we see that one rate hike of 25 basis points would increase loan repayments by $94 a month. Over a year, that works out to $1,128 more. That's just from one rate increase.

Frequently asked questions about calculating a rate change

Lenders usually pass cash rate rises on to their variable rates, often in full. That adds up quickly when rates rise several times in a short period, as they have in 2026.
This doesn't mean you're stuck. There are always better deals on the market.
Even if your lender has passed on every rise, other lenders may still offer lower rates. And many of those will have very attractive offers for new customers.
This gives you 2 options:
1. Call your lender and ask for a better deal. This is a pretty simple trick and often works great if you see that your lender has a lower interest rate for new borrowers on its website. Just make sure your loan type is the same as the new one, so it's a fair comparison. Call your lender and ask for a better deal. If your lender won't budge, tell it you're going to refinance.
2. Refinance your home loan. Switching mortgages is easier than you think. Start by checking out interest rates and then start the refinancing process by applying for the new loan.
To work out how much a rate hike will cost you, you need your loan amount, remaining loan term and the old and new interest rates.
Then you can use the calculator above to get a simple estimate. The calculator simply tells you the difference in monthly repayments between the old and new rate.
This doesn't include the cost of any ongoing loan fees you may have, but it's a simple way to calculate the impact of rate changes.
Rates have kept rising: the RBA has increased the cash rate four times in 2026, most recently to 4.60% in September. Further rises are possible, but it's hard to know at this point in time. The cash rate is decided based on a few different economic factors, so the RBA will wait to see how those play out over the coming months.
Until the last few months of 2025 it was expected there would be further rate decreases, proving how quickly the landscape can change.

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.
1. Cash rate target, RBA
2. Finder's Consumer Sentiment Tracker, accessed 3 February 2026

Thank you for your feedback!

To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.

Written by

Richard Whitten

Senior Money Editor

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Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 765 Finder guides across topics including:

Home loans
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