Just when we thought we were through the worst of it, the RBA went and hiked rates again.
After cutting rates three times through 2025, the Reserve Bank has lifted the cash rate in February 2026, again in March, and again in May.
The cash rate now sits back at 4.35%, essentially wiping out any rate relief from last year.
For anyone on a variable rate loan, the 2026 rate hikes sting. If you haven’t reviewed your loan recently, there’s a real chance you’re now paying more than you need to be.
So what should you actually do?
First, don’t panic. Rate cycles go up and they come down, and the worst thing you can do is make a big financial decision based on anxiety rather than actual numbers.
That said, doing nothing isn’t a great strategy either.
Here’s what’s worth thinking about right now:
Check your current rate.
Do you actually know what interest rate you’re on? We’re not talking about the rate you started with, the rate you’re paying right now. A lot of homeowners don’t, and that’s totally fine, but it’s the first thing you want to look at.
Compare it to what’s available.
Lenders are competing hard for new business. That means deals exist. The question is whether the deal you’re on is still competitive, or whether you’re paying a loyalty tax to a lender who’s been quietly taking your money for years.
Consider your fixed vs variable mix.
With rates moving around, this is a good time to think about whether your current split still makes sense for your circumstances. There’s no universal right answer — it depends on your goals, your buffer, and your risk appetite. You can find more about this here.
Talk to us!
If you’re feeling the squeeze right now, the best move you can make is to have an actual conversation with someone who knows what lenders are offering at the moment.
Don’t get into a Google spiral at 11pm, talk to us! That’s what we’re here for.
Get in touch with us here so we can take a look.
Disclaimer: Posted 18 May 2026.
The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
