This hub tracks the RBA cash rate, Australian variable and fixed mortgage rates at the big four banks (CBA, Westpac, ANZ, NAB), the APRA serviceability rules behind every loan approval, and what RBA meetings and quarterly CPI data mean for monthly repayments. Primary sources: the Reserve Bank of Australia's cash-rate target page and post-meeting media releases, ABS inflation data, APRA prudential standards, and the big four bank rate cards.

Current cash rate

The RBA official cash rate target is 4.10%, set on 17 March 2026 following two consecutive 25 basis point increases in February and March 2026. The 12-month path: 3.85% in late 2025, paused into 2026, raised to 3.85% in February, raised to 4.10% in March. Two of the nine Board members dissented in March, voting for a hold; that split was unusual under the new Monetary Policy Board structure that began in March 2025.

The next RBA Board meeting is 4-5 May 2026. The decision and post-meeting Statement are published at 2:30pm AEST on Tuesday 5 May, with the Governor's media briefing at 3:30pm. The Statement on Monetary Policy is published the same day at 11:30am.

The March-quarter Consumer Price Index (CPI) was released by the ABS on 29 April 2026 at 11:30am AEST. That print is the most important single data release feeding into the May 5 decision; markets reprice the cash-rate curve within minutes of release.

How the cash rate flows to your mortgage

  • Variable-rate home loans typically move by the same margin as the cash rate. A 25 basis point (0.25 percentage point) increase in the cash rate usually lifts variable mortgage rates by 0.25 percentage points within two to four weeks of the decision.
  • Fixed-rate home loans already in place do not change during the fixed term. New fixed-rate offers reprice regularly based on bond yields and the RBA's forward guidance, often before the cash-rate move itself.
  • For a $600,000 variable-rate mortgage over 25 years, each 0.25 percentage point rise adds roughly $90 a month ($1,080 a year) to the repayment. On a $1 million loan, the same step adds roughly $150 a month.

Average variable and fixed rates at the big four

Big-four owner-occupier variable rates as of late April 2026 (paying principal and interest, 80% LVR or below):

  • Standard variable: roughly 6.50% to 6.85% across CBA, Westpac, ANZ, and NAB.
  • Discounted package variable: roughly 6.10% to 6.40% with a typical $395 to $500 annual package fee. Package fee waived on some products in promotion.
  • Basic / no-frills variable: roughly 6.00% to 6.30%.

Fixed rates at the big four (owner-occupier, P&I, 80% LVR):

  • 1-year fix: roughly 6.20% to 6.55%.
  • 2-year fix: roughly 6.10% to 6.45%.
  • 3-year fix: roughly 6.05% to 6.40%.
  • 5-year fix: roughly 6.30% to 6.65%.

Investment loans typically run 25 to 40 basis points above the equivalent owner-occupier rate. Interest-only rates run 30 to 60 basis points above the equivalent P&I rate.

LVR bands and the LMI threshold

Loan-to-value ratio (LVR) is the loan as a percentage of the property value. Australian rate cards step pricing across the LVR bands:

  • 60% LVR (40% deposit / equity): the cheapest band. Some lenders extend a small additional discount.
  • 70% LVR: standard premium band. Most package offers price here.
  • 80% LVR: the LMI threshold. Above 80% LVR, owner-occupiers normally pay Lenders Mortgage Insurance, a one-off premium that can run from $4,000 on a small loan to over $30,000 on a large loan.
  • 85% LVR: additional rate loading on top of LMI.
  • 90% to 95% LVR: highest pricing band. LMI applies. Maximum LVR depends on lender; CBA and Westpac extend to 95% with strong income and conduct evidence.

First-home buyers can avoid LMI through the First Home Guarantee, which lets eligible buyers purchase with a 5% deposit (income caps apply: $125,000 for singles, $200,000 for couples). The Family Home Guarantee gives a 2% deposit option for eligible single parents.

The APRA serviceability buffer

APRA requires every Australian lender (banks, mutuals, non-banks) to assess loan applications at the loan rate plus a buffer. The buffer was 2.5 percentage points until October 2021, then raised to 3 percentage points, and held there since. APRA has signalled it will keep the 3 point buffer in 2026.

Practical effect on a typical application:

  • Rate offered: 6.40% variable.
  • Assessed rate: 6.40% + 3.00% = 9.40%.
  • The lender models monthly repayments at 9.40% and tests the household's free cash flow at that rate. The application fails if the buffer-assessed repayment exceeds the household's surplus capacity.

The buffer is the single biggest driver of how much an Australian household can borrow. Borrowing capacity calculators on bank sites use the live buffer; expect the assessed-rate calculation rather than the offer rate to set the household's loan ceiling.

The mortgage cliff: fixed-to-variable rolloffs

Roughly $300 billion of Australian fixed-rate mortgages signed during the 2020 to 2022 ultra-low-rate window (with rates as low as 1.94% on 4-year fixes) have been rolling off through 2024 to 2026. The bulk of that wave passed through 2024, but the tail is still landing in 2026: borrowers who locked 4 to 5-year fixes at 2.0% to 2.5% are now repricing to variable rates around 6.0% to 6.5%.

On a typical $600,000 25-year loan, the rollover represents an additional repayment of roughly $1,400 to $1,600 a month. Lenders have generally been amenable to extending loan terms or switching to interest-only periods for borrowers in repayment stress; the application volume on hardship measures peaked in early 2025 and has tapered since.

What drives the RBA's decision

  • Trimmed mean CPI. The RBA weights the ABS trimmed mean measure (which strips the 15% most volatile items at each end of the basket) over headline CPI. A trimmed mean print above 3.5% on annual change usually supports a hike. A print near or below the 2 to 3% target band makes a hold or a cut more likely.
  • Unemployment rate. A rising unemployment rate argues for holding or cutting. A tight labour market with a 4% or lower jobless rate argues for holding or hiking. The April labour force release lands ahead of the May meeting.
  • Wages growth. The Wage Price Index measures private and public sector wage increases. Sustained WPI growth above 4% supports a hike; below 3% supports a hold or cut.
  • Household consumption. Retail trade, consumer confidence, and mortgage-holder savings buffers tell the RBA whether existing settings are already cooling the economy.
  • Global rates. What the US Federal Reserve, the ECB, and the Bank of England do shapes AUD/USD and imported-goods inflation. The RBA cannot ignore the major-economy pricing path even if domestic data argues otherwise.

RBA meeting schedule for 2026

The Monetary Policy Board meets eight times a year. The remaining 2026 meeting dates after May:

  • 30 June – 1 July 2026.
  • 4 – 5 August 2026.
  • 22 – 23 September 2026.
  • 3 – 4 November 2026 (Melbourne Cup Day).
  • 15 – 16 December 2026.

Decisions are released at 2:30pm AEST / AEDT on the second day of each meeting, with the Governor's media briefing at 3:30pm.

What households can do ahead of a meeting

  • Check your buffer. Most Australian borrowers were stress-tested at a rate roughly 3 percentage points above the prevailing variable rate at loan origination. If your buffer is thin, run the household budget against another 0.25 to 0.50 percentage point rise before the May print.
  • Consider fixing. If you expect further hikes, a 2- or 3-year fix locks in certainty. Fixed rates at the big four currently sit at or just below equivalent variables, reflecting expectations the cash rate will plateau and ease into 2027.
  • Review offset balances. Every dollar in an offset account against the loan reduces interest charged at the loan rate. In a rising-rate environment the saving compounds; an offset balance of $50,000 against a 6.40% mortgage saves around $3,200 a year.
  • Refinance check. Big-four customers who have been on the same loan for two or more years are typically paying 30 to 80 basis points above the best new-customer rates. Refinancing within the same lender (a rate review) often yields a 25 to 50 point reduction without changing banks.
  • Check hardship options. Under the National Consumer Credit Protection Act and ASIC's debt collection guidance, all Australian lenders are required to consider hardship variations from a borrower experiencing genuine financial difficulty. Applying earlier preserves more options.

If you cannot pay your mortgage

Hardship variations under the National Consumer Credit Protection Act 2009 must be considered by every lender within 21 days of a hardship notice from the borrower. Standard variations a lender will consider:

  • A repayment pause for up to three months.
  • A switch to interest-only payments for a defined period.
  • An extension of the loan term to reduce the monthly repayment.
  • Capitalising arrears into the loan balance.

If the lender refuses or the variation does not solve the problem, the borrower can lodge a free dispute with the Australian Financial Complaints Authority (AFCA). AFCA can pause enforcement action while the dispute is open.

Glossary

  • Cash rate target: the interest rate at which banks lend to each other in the overnight money market. Set by the RBA Monetary Policy Board. Drives variable mortgage rates.
  • LVR: Loan-to-value ratio. The mortgage as a percentage of the property value. 80% LVR means a 20% deposit.
  • LMI: Lenders Mortgage Insurance. A one-off premium charged when LVR exceeds 80%. Insures the lender, not the borrower.
  • Trimmed mean CPI: the ABS inflation measure that strips the 15% most volatile items at each tail. The RBA weights it over the headline number.
  • WPI: Wage Price Index. The ABS measure of pay growth across private and public sector jobs.
  • Serviceability buffer: the percentage points APRA requires every lender to add to the loan rate when assessing affordability. Currently 3 percentage points.
  • Offset account: a transaction account linked to the loan; the balance reduces the interest charged on the loan.
  • Mortgage cliff: the wave of fixed-rate loans signed during the 2020-2022 low-rate window now repricing to live variable rates.

Where to check the live numbers