Should I Fix My Mortgage After a Rate Rise in Australia? What to Do Next.

The Reserve Bank of Australia (RBA) has lifted the cash rate once again in their March 2026 Meeting, marking another shift in the interest rate cycle.

While the headline increase of 0.25% (25 basis points) may seem small, the real impact depends on how your lender responds — and what you do next.

Because not all lenders move in the same way… or at the same time.

What Does a 0.25% Rate Rise Actually Mean?

To put this into perspective, here’s how a 0.25% increase can affect monthly repayments:

• Around $75–$80 more per month on a $500,000 loan
• Around $120–$130 more per month on an $800,000 loan
• Around $150–$170 more per month on a $1,000,000 loan

These are indicative figures and will vary depending on your interest rate and remaining loan term, but they provide a useful guide.

When combined with broader cost-of-living pressures, even small increases like this can start to add up.

Which Lenders Are Passing On the Increase?

Following the RBA’s announcement, several lenders have already confirmed they will pass on the full 0.25% increase to variable home loan rates.

Lenders Passing On The Rate Rise (Confirmed)

Lender	Rate Increase	Effective Date
AMP Bank	+0.25%	23 March
ANZ	+0.25%	27 March
Commonwealth Bank	+0.25%	27 March
NAB	+0.25%	27 March
Bank of Melbourne	+0.25%	31 March
BankSA	+0.25%	31 March
Bankwest	+0.25%	27 March
St George	+0.25%	31 March
Westpac	+0.25%	31 March
Macquarie Bank	+0.25%	2 April
Teachers Mutual Bank	+0.25%	26 March
ING	+0.25%	27 March
MyState	+0.25%	26 March
Bank Australia	+0.25%	1 April
Bank of Queensland (BOQ)	+0.25%	20 March
Bank of Sydney	+0.25%	14 April
Bendigo Bank	+0.25%	25 March
Greater Bank	+0.25%	2 April
Homeloans.com.au	+0.25%	27 March
Homestar Finance	+0.25%	18 March
HSBC	+0.25%	30 March
ME Bank	+0.25%	21 March
Newcastle Permanent	+0.25%	27 March
People’s Choice	+0.25%	27 March
Qudos Bank	+0.25%	1 April
RACQ Bank	+0.25%	31 March
Suncorp Bank	+0.25%	27 March
UBank	+0.25%	26 March
UniBank	+0.25%	26 March
Unloan	+0.25%	27 March
Virgin	+0.25%	20 March

Should I Fix My Mortgage After a Rate Rise in Australia?

With uncertainty in the market, many borrowers are asking the same question:

Should I fix, stay variable, or wait it out?

We’ve recently explored this topic in more detail on The Property Couch podcast (Ep 587), where we break down how to think about fixing versus staying variable in the current rate environment.

Fixing your mortgage can provide certainty, but it also comes with trade-offs. Staying variable offers flexibility, but exposes you to further changes. The key is not reacting to the rate rise itself, but understanding where you sit and what’s likely ahead. The answer will always depend on your individual circumstances, but there are a few principles worth keeping in mind — especially in a window like this.

1. Review Your Current Rate

If you haven’t checked your loan in the past 12-24 months, there’s a strong chance your rate is no longer competitive. So reach out to your bank or mortgage broker to get the conversation started.

2. Assess Your Loan Structure

It’s not just about the rate. Your loan structure — splits, offsets, and flexibility — plays a key role in long-term outcomes.

3. Avoid Reactive Decisions

Making rushed decisions based on headlines can lead to poor outcomes. A considered, strategic approach is far more effective.

And this is where timing becomes important.

Many borrowers only review their loan when rates are falling. But in reality, the most valuable opportunities often come before the cycle turns.

With expectations of a potential rate cut as early as May, this current window presents a chance to get your position right ahead of that shift. If you’re wondering whether to fix your mortgage after this latest rate rise, please understand this… the first step isn’t choosing a product — it’s understanding your current position.

A simple loan review today can help you:

• Identify whether you’re paying more interest than necessary
• Improve your loan structure
• Put yourself in a stronger position for when rates begin to move again

In fact, over the past two financial years, Empower Wealth has helped clients save more than $5 million in interest through strategic loan reviews and optimisation.

Want to understand how the banks really work?

If you haven’t explored our Beat the Banks video series yet, it’s well worth your time.

While the series has been around for a while, many of our clients still find it incredibly valuable — particularly when it comes to understanding how lending really works and how to secure a better outcome with your bank.

Across a handful of short, practical videos, you’ll gain insights into:

• Why banks operate the way they do
• The limitations of comparison rates and advertised discounts
• How to work out your true interest rate
• What the ‘loyalty tax’ is — and how to avoid paying it
• How to approach your bank’s retention team with confidence
• Why working with a mortgage broker can often deliver a stronger result than going direct

Ready to Review Your Loan?

If it’s been a while since your last review, or you’d simply like a second opinion, our team is here to help.

With lenders already moving and competition heating up, you may have more negotiating power than you think. Speak with our Mortgage Broking team for a free loan review—it could save you thousands. 

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