Two Hikes in Eight Weeks
The RBA raised the cash rate by 25 basis points at its February 2026 meeting, and again at its March 2026 meeting — bringing the total increase in 2026 alone to 0.50%. The cash rate now sits at 4.10%. The Board cited persistent underlying inflation (trimmed mean CPI at 3.4% for the 12 months to January 2026) as the primary driver, with price pressures proving more stubborn than earlier forecasts suggested.
Lenders moved quickly. Variable rate customers across all major and non-major banks will see their rate increase from late March. This is the second rise in 2026 — and it comes on top of the rate increases already delivered throughout 2025.
The average new loan in NSW is now $873,000. The March rise alone adds approximately $133/month to repayments on that balance. Across both 2026 rises, borrowers are paying approximately $265/month more than they were in January.
What This Means for Your Repayments
The table below shows actual P&I repayment reductions across three loan sizes typical of the Sydney Eastern Suburbs, based on a 25-year remaining term. The comparison is between an increased variable rate of 6.09% after the March rate rise and a competitive refinance rate of 5.79%, inclusive of the rise.
| Loan Balance | Increased Variable Rate @ 6.09% | Refinance Rate @ 5.79% | Monthly Saving | Annual Saving |
|---|---|---|---|---|
| $900,000 | $5,848 / mo | $5,684 / mo | $164 / mo | $1,968 / yr |
| $1,200,000 | $7,798 / mo | $7,578 / mo | $220 / mo | $2,640 / yr |
| $1,800,000 | $11,697 / mo | $11,367 / mo | $330 / mo | $3,960 / yr |
Figures based on P&I repayments over a 25-year remaining term. The 6.09% rate reflects a typical variable rate after the March 2026 RBA rate rise. The 5.79% rate reflects a competitive refinance rate inclusive of the March 2026 rise - it is the rate borrowers can expect once lenders pass it on in full. Actual savings will depend on your loan balance, remaining term, and the rate we are able to negotiate for your profile. This is illustrative only and does not constitute financial advice.
The Loyalty Tax Is Real
One of the most consistent patterns in Australian mortgage lending is that loyal customers pay more. Banks reserve their sharpest rates for new customers, not existing ones. If you have been with the same lender for two or more years and have not renegotiated your rate, you are likely paying above the market rate simply for staying put.
This is what brokers refer to as the "loyalty tax". Your lender is not going to call you and offer you a better deal. That only happens when you push back — or when you leave. Every month you stay without acting is another month of paying the difference.
"Lenders reserve their sharpest pricing for borrowers who are actively shopping around. The moment you stop looking, you become their most profitable customer."
Is Your Fixed Rate About to Expire?
If you fixed your rate in 2021 or 2022, when fixed rates were available at historic lows between 1.89% and 2.29%, your term may be ending soon or may have already rolled over. When a fixed term expires, your lender automatically moves you onto their standard variable rate. That rollover rate is not competitive. It is set by your lender to maximise their margin, not to reward your loyalty.
Start the refinancing process 6-8 weeks before your fixed term ends. This allows enough time to assess your options, submit an application, and settle a new loan on or before the rollover date. Every month you spend on your lender's standard variable rate is money you do not need to spend.
What Should Sydney Eastern Suburbs Borrowers Do Right Now?
Lenders are competing hard for new business, particularly quality borrowers with equity-rich Sydney Eastern Suburbs properties. That competition works in your favour — but only if you act.
- Check your current rate today — and factor in the rate rise. Log into your internet banking or call your lender. Your rate has increased since the last time you looked. If you are on a standard variable rate and have not renegotiated in the past two years, you are almost certainly paying more than you need to.
- Know what the market is actually offering. The difference between a standard variable rate and a competitive refinance rate is currently around 0.30%. On a $1.2m loan, that is $220/month. On a $1.8m loan, it is $330/month. These are not marginal savings.
- Call Shane Howley or book an appointment today. We will benchmark your loan against 30+ lenders, calculate your exact saving, and tell you honestly whether refinancing makes sense. If it does, we manage the entire process — application, valuation, and settlement — at no cost to you.
Fixed vs Variable: What Makes Sense Right Now?
With two rate rises already in 2026, many borrowers are asking whether they should fix. Our view: fixing provides repayment certainty, not necessarily a lower rate. Fixed rate products currently available have already priced in expected future RBA movements, which means they are not materially cheaper than competitive variable rates. If budget certainty is your priority, fixing has merit. If you are chasing the best rate, a competitive variable is the stronger position right now.
The right answer depends on your income, cash flow, and how long you plan to hold the property. Call Shane Howley on 0403 156 991 to work through what makes sense for your situation.
Find out exactly what you could be saving
Shane Howley will benchmark your loan against 30+ lenders and give you a straight answer on whether refinancing makes sense. No cost, no obligation.
Book an Appointment Call 0403 156 991