RBA Cash Rate Tracker

By Pravin Mahajan & Mahendra Duddempudi

03 Nov 2026

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The Reserve Bank of Australia (RBA) raised the cash rate by 0.25 percentage points to 4.85% on 3 November 2026 because inflation remained above its 2–3% target and the Bank expected it to stay higher for longer. It was the fifth cash rate hike of 2026, taking the cash rate to its highest level since 2008.

• Inflation picked up in September. Annual headline inflation rose from 4.0% in August to 4.3% in September. Annual trimmed mean inflation, which strips out the largest price movements to show the underlying trend, rose from a revised 3.5% to 3.6% in the ABS monthly series.
• Price pressures extended beyond fuel. Higher global fuel and commodity prices contributed to the increase. But the RBA also judged that demand was still putting more pressure on the economy’s ability to supply goods and services than it previously thought, even as household spending growth slowed.
• The RBA expects inflation to take longer to come down. In its updated November forecasts, the RBA doesn’t expect inflation to return to 2.5%, the midpoint of its target range, until mid-2028. That’s a forecast for the midpoint, not the date inflation first returns to the 2–3% range.
• The Board was split on whether to raise rates. Six members voted for the hike and three voted to keep the cash rate at 4.60%. The November decision doesn’t settle what the RBA will do at its next meeting on 8 December 2026.

The RBA monitors several key economic indicators when setting the cash rate, including inflation (both headline and core), GDP growth, unemployment, home prices, and wage growth. Of these, inflation carries the most weight. The RBA's primary mandate is to keep it within the 2–3% target band.

Following each RBA decision, Bheja AI tracks which lenders raised or cut rates and by how much, updated in real time. Enter your loan details to see how the current cash rate affects your monthly repayments.

The RBA cash rate affects more than just your mortgage rate. These guides break down how decisions are made, what the data means, and how lenders are responding, so you can make sense of each move as it happens.

With rates rising, the gap between the big four banks and smaller lenders has widened. These figures reflect live data across 7,215 home loan products, updated throughout the day. The snapshot shows the average variable and fixed rates across the market, the single best available rate right now, and a ranked list of the most competitive lenders by their lowest advertised rate, so you can see at a glance where your rate sits. You can also compare rates across loan types, variable versus fixed, owner-occupied versus investment, and principal and interest versus interest only.

Home Loan Market Snapshot

Real-time insights from thousands of Australian home loan products

Updated: 7 Nov 2026, 12:01 pm

Average Variable Rate

6.97%

Owner Occupied P&I

Average Fixed Rate

7.01%

3-year fixed

Best Available Rate

5.64%

Variable • Owner Occupied

Total Products

7,764

Available in market

Most Competitive Lenders

Big 4 Banks Average

7.21%

Market Average

7.00%

Online Lenders Average

6.74%

1

Unloan

4 products

From

5.89%

Avg

6.12%

2

Fire Service Credit Union

5 products

From

5.89%

Avg

6.17%

3

Easy Street

15 products

From

5.95%

Avg

6.28%

4

First Option Bank

24 products

From

5.99%

Avg

6.36%

5

BankVic

30 products

From

5.93%

Avg

6.44%

Rate Comparison by Category

Variable vs Fixed

Variable

6.97%avg

2,672 products

Fixed

7.01%avg

5,092 products

Owner Occupied vs Investment

Owner Occupied

6.95%avg

3,896 products

Investment

7.04%avg

3,868 products

Principal & Interest vs Interest Only

P&I

6.86%avg

4,444 products

Interest Only

7.17%avg

3,320 products

Market Features Overview

52%

Products with Offset Account

13%

Products with Cashback Offers

$0

Average Cashback Amount

41%

Products with No Fees

(No monthly, annual, or ongoing fees)

Compare home loans

Data sourced from 7,764 home loan products

Analysis based on products supporting minimum $300K loan amounts over 25-year terms

Interest rates move. Your home loan should, too.
Instead of guessing what to do after every RBA rate change, perform a quick Home Loan Health Check and see if your current deal still makes sense.

The cash rate is the interest rate that banks and other financial institutions pay to borrow money from each other overnight. You can also think of it as the wholesale cost of money.

When the RBA changes the cash rate, lenders may adjust their home loan interest rates in response. However, banks are not required to pass on the full increase or decrease. Each lender makes its own decision based on factors such as funding costs, competition and business strategy.

For borrowers on variable-rate home loans, any changes are typically announced within days of an RBA decision and usually take effect within one to two weeks.

As a homeowner, it's important to pay attention to communications from your lender. If your interest rate changes, check when the new rate will take effect and how it may impact your repayments.

More importantly, don't assume your rate remains competitive just because the RBA hasn't moved, or because your lender has passed on a rate cut. Regularly reviewing your mortgage can help you understand how your rate compares with the wider market and whether there may be better options available.

The RBA cash rate doesn't just affect borrowers, it can also influence the interest rates paid on savings accounts and term deposits.

When the RBA increases the cash rate, banks may increase rates on savings products, allowing savers to earn more interest on their money. Conversely, when the RBA cuts the cash rate, savings rates may also fall, reducing the returns available on cash held in the bank.

However, banks are not required to pass on RBA changes in full. Some institutions may increase or decrease savings rates by less than the cash rate move, while others may adjust only selected products.

If you're relying on interest income or building up savings for a home deposit, it's worth reviewing your savings account regularly. The difference between a market-leading savings rate and a below-average one can add up over time, particularly on larger balances.

As with home loans, loyalty doesn't always pay. Comparing savings products periodically can help ensure your money is working as hard as possible.

The RBA cash rate can influence housing demand, borrowing power and property prices, but it is only one of many factors that shape the market.

When interest rates fall, borrowing generally becomes more affordable. This can increase buyers' borrowing capacity and encourage more people to enter the market, which may support property prices. Lower rates can also improve confidence among existing homeowners and investors.

When interest rates rise, the opposite can occur. Higher borrowing costs can reduce purchasing power, make repayments more expensive and slow buyer demand. In some markets, this can place downward pressure on property prices or moderate price growth.

However, the housing market is influenced by much more than interest rates. Housing supply, population growth, employment levels, government policies and consumer confidence all play an important role. As a result, changes in the cash rate do not always lead to immediate or predictable movements in property prices.

For home buyers and homeowners, it's important to look beyond the latest RBA decision and consider the broader market conditions when making property and borrowing decisions.

Written by

Pravin Mahajan

Founder @ Bheja.ai | Mortgage Broker | Ex-CTO RateCity & CIMET

Pravin Mahajan is the Founder of Bheja.ai and an accredited Mortgage Broker (Credit Rep. 570637). Based in Sydney, he sits at the unique intersection of financial regulation and enterprise technology.

With over 30 years of experience, Pravin has architected the consumer platforms that millions of Australians rely on for daily financial and purchasing decisions. His career is defined by building high-scale systems that simplify complex choices:

• RateCity (Acquired by Canstar): As Chief Product & Technology Officer, Pravin led the tech transformation that culminated in the company's acquisition. He orchestrated "Australia’s First Home Loan Sale," a digital initiative that reached over 12 million people.
• CIMET: As CPTO, he built enterprise-grade infrastructure for energy and broadband comparison, scaling operations to support major B2B partners.
• Salmat (Lasoo): He architected digital catalogue systems used by 5.7 million monthly users, digitising the retail experience for brands like Target and Myer.
• Woolworths: Designed the real-time, secure "Pay at Pump" transaction infrastructure deployed Australia-wide.

Today, at Bheja.ai, Pravin combines this deep technical background with his Certificate IV in Finance and Mortgage Broking to build AI agents that don't just compare loans, but help Australians actively secure their financial future.

Mahendra Duddempudi

CTO & Head of Research

Mahendra Duddempudi is the CTO, Founder, and Head of Research at Bheja.ai. With 15+ years in software architecture, data engineering, and analytics, he combines technology and research to simplify complex topics in property, home loans, and finance. His work focuses on using AI, natural language search, and data-driven insights to make financial decisions clearer and more accessible for Australians.

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