Savings .com.au

How will repayments change if rates move?

Once a month (except in January), the Reserve Bank of Australia board (RBA) meets to discuss the official cash rate target, which is the market standard for lending and borrowing money between banks. The lower the cash rate, the lower the interest rates on bank products such as home loans, savings accounts, term deposits and more.

If there is a rise or fall in the cash rate, then your mortgage’s variable interest rate is likely to rise or fall by a similar amount, depending on the bank. In 2019, for example, there were three cash rate changes of 25 basis points (0.25%), from 1.50% to 0.75%, and most lenders dropped home loan rates by a similar amount.

However, lenders can also raise or cut home loan rates even when the RBA has not made any changes to the cash rate, so you should always be on your toes.

Home loan interest rate change calculator

Savings.com.au’s home loan rate change calculator can show you what your home loan repayments could hypothetically change by if your lender changes your interest rate.

Finding out if your budget could handle a potential cash rate increase, or if you can continue to make higher repayments if there is a decrease, could be seriously useful in helping you safeguard your financial future.


Looking for a home loan?

Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.

Lender

VariableMore details
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
VariableMore details
Unlimited Redraws
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely – Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely – Access your additional payments when you need them
  • Home loan specialists available today
VariableMore details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
VariableMore details
4.6 Star Customer RatingsIncludes Nov RBA Rate Increase
4.6 Star Customer RatingsIncludes Nov RBA Rate Increase

loans.com.au – Variable Home Loan (LVR < 90%)

    VariableMore details
    • $0 application fee
    • Fast turnaround times
    • Estimate your borrowing power in as little as 1 minute

    Macquarie Bank – Offset Package Home Loan (Principal and Interest) (LVR 60%-70%)

    • $0 application fee
    • Fast turnaround times
    • Estimate your borrowing power in as little as 1 minute
    VariableMore details

    ubank – Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

      VariableMore details
      • $0 application fee
      • Fast turnaround times
      • Estimate your borrowing power in as little as 1 minute

      Macquarie Bank – Basic Home Loan (Principal and Interest) (LVR 70%-80%)

      • $0 application fee
      • Fast turnaround times
      • Estimate your borrowing power in as little as 1 minute
      FixedMore details

      Reduce Home Loans – Home Owners Dream Fixed Cashback 1 Year (LVR < 80%)

        FixedMore details

        Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR < 70%)

          FixedMore details

          Commonwealth Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years

            VariableMore details

            NAB – Base Variable Home Loan (Principal and Interest) (New Customer)

              FixedMore details

              ANZ – Fixed Rate Home Loan (Principal and Interest) 5 Years (LVR < 80%)

                FixedMore details
                • Up is 100% owned by Bendigo Bank.
                • Up to 50 offset accounts
                • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

                Up – Up Home Fixed 4 Years (Principal & Interest) (LVR ≤ 90)

                • Up is 100% owned by Bendigo Bank.
                • Up to 50 offset accounts
                • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
                VariableMore details

                Heritage Bank – Discount Variable Home Loan ($150k+) (LVR < 70%)

                  VariableMore details

                  P&N Bank – & Basic Home Loan (LVR < 60%)

                    FixedMore details

                    Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years

                      VariableMore details

                      MOVE Bank – Straightforward Plus Home Loan (LVR < 80%) (New Customer)

                        FixedMore details

                        HSBC – Package Fixed Rate Home Loan (Principal and Interest) 4 Years (LVR < 80%)

                          FixedMore details

                          IMB Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%)

                            Important Information and Comparison Rate Warning

                            Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 8, 2023. View disclaimer.