February 2026 has brought notable movement in Australia’s home‑loan landscape, driven largely by fresh Reserve Bank of Australia (RBA) policy decisions and rapid responses from major lenders. Whether you’re a current homeowner watching your repayments rise, or a prospective buyer trying to time the market, staying updated on these trends is essential.
In this month’s wrap‑up, we break down the key changes, why they’re happening, and what you can expect next.
📈 1. RBA Kicks Off the Month With a 0.25% Rate Hike
On 3 February 2026, the RBA lifted the official cash rate by 0.25%, taking it from 3.60% to 3.85%. This shift marks a firm response to persistent inflationary pressures and reverses the easing sentiment homeowners briefly enjoyed in late 2025.
Most analysts and banking economists anticipated this rise, noting that inflation remained above the RBA’s 2–3% target band. As a result, the increase signals a tightening phase that could continue into late 2026.
[9news.com.au], [savings.com.au]
🏦 2. Big Four and Dozens of Other Lenders Pass on the Hike
The moment the RBA announced the increase, lenders reacted swiftly.
The Big Four Banks
- Commonwealth Bank (CBA), ANZ, NAB, and Westpac each passed on the full 0.25% increase to their variable‑rate home loans.
- These changes kick in between 6–20 February, depending on the bank.
[commbank.com.au], [comparethe…ket.com.au]
Other Lenders Follow Suit
More than 30 lenders nationally have already announced matching increases to variable rates. This includes AMP, ING, Bendigo Bank, HSBC, Macquarie and many others.
[comparethe…ket.com.au], [finder.com.au]
The rapid spread of these changes underscores the tight correlation between cash‑rate moves and mortgage pricing—especially for variable loans.
💸 3. What This Means for Monthly Repayments
For variable‑rate borrowers, repayment increases are immediate and tangible. Based on modelling from Compare the Market:
| Loan Size | Approx. Monthly Increase |
|---|---|
| $500,000 | +$79 |
| $600,000 | +$94 |
| $750,000 | +$118 |
| $900,000 | +$142 |
| $1,000,000 | +$157 |
These estimates assume a 30‑year term and a starting variable rate near 5.43% before the hike.
[comparethe…ket.com.au]
If you’re on a fixed‑rate home loan, nothing changes immediately—but when your fixed period ends, you may face significantly higher revert‑to‑variable rates.
📉 4. National Mortgage Rate Averages Still Lower Than Last Year
Despite the February bump, national averages are still lower than peaks seen throughout 2025:
- 30‑year fixed rate average: approximately 6.16%
- 15‑year fixed rate average: around 5.62%
While rates nudged up slightly from mid‑January, they remain below 2025’s highs (when 30‑year averages often exceeded 7%).
[wsj.com]
This suggests the current environment is still comparatively favourable for borrowers—albeit less so than at the start of the year.
🔮 5. Why Rates Are Likely to Keep Rising in 2026
Economic forecasts indicate that home loan rates could keep drifting upward over the year:
- Analysts expect the RBA may lift its cash rate again later in 2026—potentially reaching 4.10% if inflation remains sticky.
- Major banks, including CBA, NAB and ANZ, have shifted their expectations away from future rate cuts and now anticipate steady or rising rates through the year.
[thetimes.com.au]
This forward guidance has already prompted many banks to lift fixed‑rate products, reflecting their belief that funding costs will continue climbing.
🧭 6. What Borrowers Should Do Right Now
1. Review Your Current Rate
With universal lender increases underway, now is the time to compare your rate with current market offerings.
2. Consider Refinancing
Given lenders are highly competitive—especially for low‑risk borrowers—switching could save you thousands annually.
3. Strengthen Your Offset Account Strategy
Several banks emphasise the value of offset accounts in reducing interest over time.
[commbank.com.au]
4. Fix a Portion of Your Loan (If It Fits Your Strategy)
Some borrowers may want certainty in a rising‑rate environment—but fixed rates are already trending higher.
🏁 Final Thoughts
This month’s mortgage landscape is shaped by a clear shift: rates are rising again, and lenders aren’t hesitating to pass changes on. With the RBA signalling a potentially tougher stance in the months ahead, homeowners and buyers should stay proactive—whether by adjusting repayment strategies, exploring refinancing, or closely watching future RBA commentary.
Sources
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