Westpac, Macquarie Bank holding off until next week
Thousands of Australian homeowners face higher monthly repayments from today as most of the big banks officially pass through the latest cash rate hike from the Reserve Bank of Australia (RBA).
Commonwealth Bank, NAB and ANZ have formally lifted variable rates by 25 basis points, having confirmed the increases were planned earlier this month. Westpac will follow suit next Tuesday, while Macquarie Bank is holding off until next Thursday.
Among today’s changes:
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ANZ has lifted its Simplicity PLUS owner-occupier home loan from 5.89% to 6.15% (LVR 80% or less)
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CBA has lifted its owner-occupier Simple Home Loan from 5.84% to 6.09%
It follows a swathe of fixed rate increases by as much as 35 basis points earlier this week as the banks prime themselves for higher funding costs down the line.
“Variable borrowers across the country are now having to brace for the second cash rate hike in as many months, while staring down the barrel of a potential third hike as soon as May,” said Canstar data insights director, Sally Tindall.
“Make no mistake, banks are starting to charge customers higher rates from today, but be aware there’s a significant delay between today and when that extra money comes out of your bank account, for those paying the minimum.
“Customers might think they’ve successfully accounted for two hikes, when in actual fact they might not have even started paying for the first one.
“If you’ve got a variable mortgage, understand what your new minimum monthly repayment is and make sure you can clear this amount.”
Canstar analysis suggests the average variable rate on the mortgage markets will be 6.01% once all pass throughs take effect.
Households have reportedly maintained strong financial buffers amid rising interest rates as many borrowers opted not to fully reduce their mortgage repayments when rates were cut in 2025. This is likely to help soften the impact of higher monthly mortgage repayments.
But while the RBA is adamant that households can handle higher mortgage repayments (at least to the extent that it won’t lead to system vulnerabilities), it is not a universally shared opinion.
Peter White, the outgoing chief executive of the Finance Brokers Association of Australia (FBAA), worries that many mortgage holders, particularly first-home buyers, will struggle to meet increased payments.
Anja Pannek, chief executive of the Mortgage and Finance Association of Australia (MFAA), said borrowers have already become more cautious in a new cycle of higher interest rates and cost-of-living pressures, as evidenced by softening borrower confidence in the MFAA February 2026 Market Sentiment Survey.
Even before the March RBA rate hike, about 1.32 million mortgage holders (24.9%) were “at risk” of mortgage stress in the three months to February 2026, a 1% uplift from January, according to Roy Morgan research.
