Key takeaways:
Borrowers want tailored answers: The impact of a rate rise depends on the loan, lender and borrower rather than an average repayment figure.
Buyers are checking their limits: Those borrowing close to their assessed maximum may need to revisit their borrowing power and property budget.
Applications are assessed individually: A rate change does not affect every borrower or lender application in the same way.
Homeowners are reviewing sooner: Some existing customers are checking whether their current rate and loan still suit their circumstances.
Brokers can model scenarios: An Aussie Broker can compare repayment, borrowing-power and loan scenarios using current lender information.
For borrowers following the latest interest rate headlines, one question is coming up repeatedly in conversations with brokers: “Do I need to act now or wait?”
There is no single answer or repayment figure that applies to every borrower. The impact of a rate rise depends on factors including the size and structure of the loan, the borrower’s current interest rate and whether their lender changes its home loan rates.
It can also differ depending on whether someone is buying, refinancing or already repaying a home loan. Interviews with Aussie Brokers across New South Wales, Queensland and Western Australia point to several recurring questions, from whether buyers need to move quickly to whether existing homeowners should review their rate.
What happened at the September RBA meeting?
On 29 September 2026, the Reserve Bank of Australia increased the cash rate target by 0.25 percentage points to 4.60%.
The RBA said inflation remained elevated and some previously identified upside risks were materialising. It pointed to higher global energy prices, stronger-than-expected domestic inflation and growth, and continuing capacity pressures.
The cash rate does not directly determine individual home loan rates. Each lender decides whether to change its rates, by how much and when any change will take effect.
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What brokers are hearing from borrowers
Do I need to act now or wait?
Some variable-rate borrowers are asking whether they should make a change immediately or wait to see how their lender responds.
Aussie Alexandria Broker David Moodie said his conversations are focused less on predicting the next RBA decision and more on showing clients what different repayment scenarios could look like.
“We can show people and say, ‘These are your repayments based on the rate now, one rate rise, two rate rises and three rate rises,’” David said.
Modelling several scenarios may help borrowers see how much room they have in their budget without assuming a particular rate path will occur.
Existing homeowners do not need to wait for a lender announcement to check their current loan. However, a review does not automatically mean refinancing. Depending on the loan balance, remaining term, available rate and switching costs, the existing loan may still suit the borrower’s circumstances.
Do I need to rush my application?
Abbie Ffrost of Aussie Toowoomba said some buyers were worried that missing an unofficial deadline before the rate rise could affect their approval.
“The conversations I’ve had with clients have been more around them going, ‘I’ll have to get this application in before the interest rate increase, or the bank won’t approve it,’” she said.
“There’s a little bit of education with customers around that. Yes, it does have an effect on assessment amounts, but everything is so individual. Every customer’s circumstances are specific.”
The effect of a rate change may depend on the applicant’s income, expenses, debts, requested loan amount and the relevant lender’s assessment requirements. An Aussie Broker can check the application against current lender settings and explain whether the estimated repayments or borrowing position may have changed.
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Will I still be able to borrow the same amount?
This is becoming a more pressing question for buyers who were already close to their maximum assessed borrowing capacity.
David recently modelled the effect of a single rate increase for clients preparing to buy. In that particular scenario, their indicative borrowing power fell by about $15,000.
“First, can they afford the new repayments?” David said. “Then, if they’re borrowing close to their maximum, do they need to bring their property budget down as well?”
The figure is not representative of every borrower, but it shows how a relatively small rate movement can affect a property budget when someone is already near their borrowing limit.
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In Perth, Aussie Victoria Park Broker Le-On Lim said first-home buyers appeared particularly concerned because many were already balancing a limited deposit with higher property prices.
“A lot of first-home buyers are really going right to the limit, or trying to go up to the limit, to be able to get something substantial to buy,” he said.
For some buyers, the next step may be reassessing the intended purchase price. Others may decide to spend more time increasing their deposit or strengthening their financial position before returning to the market.
An Aussie Broker can update a buyer’s indicative borrowing capacity, model different purchase prices and help them understand what may be achievable under current lender requirements.
Will the rate rise affect me as much as the headlines suggest?
Abbie said national repayment estimates may look different from what some borrowers in regional markets experience.
With an average loan size of about $420,000 at her Toowoomba store, Abbie said many local borrowers may see a smaller dollar increase than borrowers with larger capital-city mortgages.
“A 0.25% increase on that average loan is very different from an increase on a $900,000 or $1.2 million loan,” she said. “It’s all relative.”
The impact can also vary between borrowers in the same location. Loan size, interest rate, repayment type, remaining term and the lender’s response can all influence the eventual change.
An Aussie Broker can translate general repayment estimates into scenarios based on the borrower’s actual loan balance, rate and remaining term.
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Is my current rate still competitive?
The RBA decision has also prompted more existing homeowners to check their loans.
Abbie's team reviews each client’s home loan annually, initially asking the existing lender whether a discount may be available. She said more clients were now returning before their next scheduled review.
“We are finding increasingly, with the media focus on interest rates, that customers are coming back to us after six months and asking, ‘Can you do this again?’” she said.
Not every review results in a lower rate or refinance. Abbie said the potential benefit needs to be considered against the borrower’s balance, current rate, property value, remaining term and any costs involved in switching.
An Aussie Broker can approach the existing lender about its available pricing and, where appropriate, compare other loan options. This does not mean switching will necessarily be suitable or deliver a saving.
A snapshot from the front line
Across the three states, brokers are seeing different versions of the same concern: borrowers want to know what the rate rise means for them, rather than for an average mortgage holder.
Some buyers are asking whether they need to submit an application quickly, while others are reconsidering their price range. Existing homeowners are checking their rates more frequently, and brokers are monitoring lender rate and assessment changes.
Borrowers who want to monitor their existing home loan can use Rate Radar in the Aussie app. An Aussie Broker can also help assess what the current environment may mean for a borrower’s repayments, borrowing power or loan options based on their circumstances.