Cash rate at 4.60%: what four rises in 2026 did to a $750,000 loan
The Reserve Bank has lifted the cash rate four times in 2026, from 3.60% to 4.60%. If your lender passed on every rise, repayments on a $750,000 loan over 30 years are about $482 a month higher than they were in January. That is close to $5,800 a year.
The latest move came on 29 September, when the Board voted unanimously to lift the cash rate target by 0.25 of a point, effective the next day. Cotality calls it the highest level in fifteen years.
If you have a mortgage, or you are about to apply for one, the headline matters less than one plain question. What does a full point cost in dollars? We ran it.
Key facts, as at 1 October 2026
- Cash rate target: 4.60%, effective 30 September 2026
- Rises this year: 4 February, 18 March, 6 May and 30 September, each 0.25 of a point
- On hold in June and August
- Average variable rate on new owner occupier loans: 6.24% in July, before the September rise
Source: Reserve Bank of Australia
How we got from 3.60% to 4.60%
| Cash rate target | |
|---|---|
| Jan | 3.6% |
| Feb | 3.85% |
| Mar | 4.1% |
| Apr | 4.1% |
| May | 4.35% |
| Jun | 4.35% |
| Jul | 4.35% |
| Aug | 4.35% |
| Sep | 4.35% |
| Oct | 4.6% |
Source: Reserve Bank of Australia, cash rate target. The September rise took effect on 30 September.
The Board's own words were short. "Inflation remains elevated and some of the upside risks flagged in August are materialising."
It pointed to three pressures: higher global energy prices as a result of the conflict in the Middle East, demand linked to AI pushing up the price of technology goods, and firms at home running into capacity limits and lifting prices. It closed with a line worth reading twice: "The Board remains focused on ensuring that high inflation does not become embedded."
That is not the language of a bank that thinks it has finished.
What a full point costs
The Reserve Bank publishes the average rate lenders charge. In July, new variable loans to owner occupiers averaged 6.24%. That figure already had the first three rises in it, so the same loan sat near 5.49% in January. Add September's rise in full and you reach 6.49%.
Here is a $750,000 loan over 30 years, principal and interest, at each step.
| Loan rate | Monthly repayment | More than January |
|---|---|---|
| 5.49% (January) | $4,254 | |
| 5.74% (after February) | $4,372 | $118 |
| 5.99% (after March) | $4,492 | $238 |
| 6.24% (after May) | $4,613 | $359 |
| 6.49% (after September) | $4,736 | $482 |
The same full point costs about $321 a month on a $500,000 loan and about $642 a month on $1,000,000.
Your own rate will differ. Investors pay more: the July average for new investor loans was 6.41%. And lenders do not always move in step with the Reserve Bank. Treat the table as the size of the change, then check your own statement.
What we would do with this
Two things matter more than the headline.
First, the test is harder than the repayment. A lender does not check whether you can pay 6.49%. It checks whether you could pay about 9.49%, because it must add a 3 point buffer. Every rise pushes that test up, and that is what shrinks how much you can borrow. We cover the numbers in borrowing power in late 2026.
Second, do not budget for a cut. Cotality's October report notes "the possibility of another in November". We do not know which way the next move goes, and neither does anyone else. If a purchase only works when rates fall, it does not work yet.
For a record of what we expected back in December, before any of this, our rate forecast post from 2025 is still up, unchanged.
Open the Loan Repayment Calculator
Frequently asked questions
How many times has the RBA raised rates in 2026?
Four times. The cash rate target rose by 0.25 of a point on 4 February, 18 March, 6 May and 30 September 2026. The Board held in June and August.
What is the RBA cash rate now?
The cash rate target is 4.60%, effective 30 September 2026. It started the year at 3.60%.
How much does a 0.25 point rate rise add to a $750,000 mortgage?
About $118 to $123 a month on a 30 year principal and interest loan, depending on the rate you start from. Four rises add about $482 a month.
Will the RBA raise rates again in 2026?
Nobody knows. Cotality's October report notes the possibility of another rise in November. We would budget for today's rate lasting, and treat any cut as a bonus.
Sources
- Reserve Bank of Australia, cash rate target, decisions to 30 September 2026
- Reserve Bank of Australia, Statement by the Monetary Policy Board, 29 September 2026
- Reserve Bank of Australia, lenders' interest rates, July 2026
- Cotality Home Value Index, 1 October 2026
Repayments are our own arithmetic on a 30 year principal and interest loan. This is general information, not financial advice. Speak to your broker about your own loan.