Aussies urged to do simple mortgage check as interest rate hike passed on in days: ‘Overpaying’

Following the Reserve Bank of Australia’s (RBA) cash rate decision, lenders are rolling out their variable home loan rate increases. The 0.25 per cent per annum increases will be rolled out in the next week, leaving homeowners paying more on their mortgage. 

All four big banks’ variable mortgage increases will take effect on 9 October. For the many Australians looking for mortgage freedom in the next few years, these higher rates are going to be “brutal”, Canstar Data Insights Director Sally Tindall says. 

There’s still time to work out how you’re going to afford the increase, she says, and a new tool from consumer site Finder is also helping Aussies figure out how their new home loan rate stacks up against the rest on the market. 

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Finder’s 2026 Home Loan Report found that one in four mortgage holders (25 per cent) expect to be completely debt-free within the next five years. 

To help homeowners figure out if their current rate can make that a possibility, or is hindering their chances, it launched its new tool ‘Roast My Rate’. 

The free tool analyses a borrower’s home loan to tell them what grade it deserves, and includes an estimate of how much they could save by switching to a lower rate. 

It provides a wake-up call that some Australians may need, with Tindall pointing out there are many Australians “lugging around super-sized debts attached to rates that could soon easily start with a 7″. 

She reminds borrowers it’s a change that won’t happen all at once. 

“Yes, your big bank will start charging you the higher rate from next Friday, but it will give you a lot more time to work out how you’re going to afford the increase in repayments,” she says. 

“The banks will notify you in writing at least 20 days before the new amount is debited, however, in reality, most give their customers a two-to-three-month period before the higher amount gets withdrawn from their bank accounts.” 

But even with this time ahead, it’s important for Aussies to consider whether refinancing is on the cards for them. 

Your mortgage report card

By using the big four banks’ new home loan rates and the new tool from Finder, homeowners can see where they stack up against the rest.

Commonwealth Bank’s new rate of 6.34 per cent is a 0.25 per cent increase from the old rate of 6.09 per cent. 

For a home loan of the average Australian size, $731,000, with 25 years remaining, the monthly repayments would now be $4,863. 

The Roast My Rate tool has various levels of sass, but its “hot” result says this mortgage rate is “annoyingly competent”. 

It means a Commonwealth Bank mortgage holder is paying $291 more per month than they would at the lowest ongoing rate on Finder’s comparison panel of 5.69 per cent. 

At Westpac, its same loan has increased from 5.99 per cent to 6.24 per cent. Using the same variables, a home owner with this rate would be making monthly repayments of $4,818. 

Roast My Rate says this is “so close to perfect”, telling mortgage holders they could save $245 per month with the lowest rate on offer. 

ANZ’s new rate is higher than both, coming in at 6.50 per cent. It means monthly repayments for a $731,000 loan with 25 years remaining would have monthly repayments of $4,936. 

“This rate gave up,” is what Roast My Rate tells these mortgage holders. “It’s not ripping you off, it’s just not trying.” 

The monthly savings would be $363 on the lower rate. 

Lastly, NAB, who have the highest rate on offer, have increased their rates from between 6.04 – 6.79 per cent, to 6.29 – 7.04 per cent. 

At the top end of that scale, a mortgage of $731,000 would have monthly repayments of $5,185. 

“Are you a fan of overpaying?,” is what the Roast My Rate tool asks, pointing out the potential savings of $613 per month. 

Regardless of what bank mortgage holders are with, all are bracing for the potential of more rate hikes to come: economists predict the RBA will make two more moves before the end of the year, with banks following closely behind.

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