When does my rate change after an RBA announcement?

Variable rates typically change within 1-2 weeks of an RBA announcement. Some lenders are faster (same day or next business day), others take the full 2 weeks. Fixed rates don't change during the fixed period.

Do lenders always pass on the full rate change?

Not always. On rate cuts, lenders often pass on less than the full cut. On rate rises, they sometimes pass on more than the RBA moved. Compare to see if your lender is fair.

RBA Impact Analyzer

AI Advisor

Understand how RBA rate changes affect your specific loan

Free to useNo data storedReal-time dataAI insightsUpdated: February 2026

When the RBA moves rates, how does it affect YOU? Our AI searches for the latest RBA news, calculates the impact on your specific loan, and provides analysis of what might come next.

Enter Your Details

Real-World Examples

0.25% Rate Rise Impact

The Patels have a $580,000 variable loan at 6.2%. RBA raises by 0.25%.

Inputs Used:

loanAmount:580,000currentRate:6.2rateType:VariableremainingTerm:27

Monthly repayment increases by $89 (from $3,570 to $3,659). Annual cost increase: $1,068. Over remaining term: ~$15,000 extra interest.

Rate Cut Benefit

Jenny has a $420,000 variable loan at 6.5%. RBA cuts by 0.25%.

Inputs Used:

loanAmount:420,000currentRate:6.5rateType:VariableremainingTerm:22

Monthly saving: $64 (from $2,854 to $2,790). Tip: Keep paying the higher amount to pay off 18 months earlier.

Frequently Asked Questions

Glossary

Cash Rate

The RBA's official interest rate that influences all lending rates in Australia. Set at monthly RBA meetings.

Basis Point

One hundredth of a percentage point. A 0.25% rate change equals 25 basis points.

Forward Guidance

Signals from the RBA about likely future rate decisions. Found in meeting statements and governor speeches.

Related Tools

Fixed vs Variable Analysis

Consider locking in a fixed rate for protection against rises.

Should You Refinance?

Use rate changes as a trigger to review your loan.

Stress Test Your Loan

See if you can handle further rate increases.

How to Use

1Enter your current loan details
2Select your rate type
3Get personalized impact analysis
4See predictions for future rate moves

Pro Tips

Lenders don't always pass on full RBA changes - compare your actual change to the RBA move
Variable rates adjust immediately; if you're fixed, plan for when it expires
Use RBA announcements as a trigger to review your loan - other lenders might offer better deals
Rate decisions are announced monthly (except January) - mark your calendar

Avoid These Mistakes

Assuming lenders will pass on the full RBA cut - they often keep some for profit
Not budgeting for rate increases - always stress test at current rate + 2%
Panicking at rate rises - consider fixing if you need certainty
Ignoring RBA guidance - they signal direction months ahead

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026