Rates are rising - here's what changed

Rates are rising – here’s what’s changed

Borrowers are now feeling the impact of February’s rate move.

Since the Reserve Bank of Australia (RBA) lifted the cash rate on 3 February, many lenders – including all four major banks – have increased their variable rates. That means the typical variable borrower is now paying more in interest. And it didn’t start there.

Several lenders had already begun lifting fixed rates in the weeks before the RBA decision, pricing in the likelihood of a move. So even borrowers locking in recently may have secured higher rates than they would have late last year.

How this change is playing out

Variable rates tend to move quickly after RBA changes.
Fixed rates often move in advance.
Not all lenders adjust at the same pace or by the same amount.

This is why comparison matters.

Even in a rising-rate environment, pricing gaps between lenders can be meaningful. Loan structure – offsets, repayment type and flexibility – can also make a noticeable difference over time.

If you’d like me to check whether your current rate is still competitive in today’s market, get in touch and I’ll run the numbers for you.