Big Four Banks Pass Through RBA March Hike: What Homeowners Need to Know

Overview

All four of Australia's major banks — Commonwealth Bank, National Australia Bank, Westpac, and ANZ — have confirmed they will pass on the full 0.25 percentage point increase from the Reserve Bank's 17 March 2026 decision to variable home loan customers. Here is a summary of who moved when, how much it costs, and what borrowers should do next.

Who Raised Rates and When

NAB was the first of the Big Four to confirm its move, with the increase taking effect on 27 March 2026. Commonwealth Bank and ANZ also adjusted variable home loan rates from 27 March. Westpac followed, applying its 0.25% increase from 31 March 2026.

All four banks also lifted interest rates on selected savings products. CBA adjusted GoalSaver and NetBank Saver. NAB updated iSaver and Reward Saver. ANZ changed Progress Saver and ANZ Save. Westpac also made notable changes to its savings accounts.

Monthly Repayment Impact

A 0.25% variable rate rise adds approximately:

• $75-80 per month on a $500,000 loan over 30 years
• $120 per month on an average $736,000 loan
• $150-160 per month on a $1,000,000 loan

These are pre-tax figures for a principal-and-interest loan. Interest-only borrowers will see a slightly smaller increase in dollar terms but the same rate change on their outstanding balance.

Use our Mortgage Repayment Calculator for your exact figure.

Fixed Rates Are Moving Too

In the weeks leading up to and following the March decision, all four major banks have also lifted selected fixed home loan rates. This reflects changes in the underlying funding market — particularly swap rates — and expectations that the RBA is unlikely to cut rates in the near term.

Borrowers rolling off a fixed period now face a more difficult choice. The new variable rate is higher, and the available fixed rates are also higher than they were a quarter ago. Compare options with our Loan Comparison Calculator.

What Should Borrowers Do?

1. Confirm the new rate — check your next statement and your lender's portal against the advised increase.
2. Ask for a retention discount — lenders often offer 0.10-0.30% discounts to existing customers who ask. A rate rise is a useful trigger for this conversation.
3. Get quotes from competitors — if your bank will not match, refinancing can often more than offset the 0.25% increase.
4. Keep repayments steady — if your budget allows, maintaining your previous repayment (rather than dropping to the new higher minimum) shortens the loan. Model it with our Extra Repayments Calculator.
5. Reassess your buffer — aim to stay at least 3 months ahead on repayments via an offset or redraw facility.

For Savers

For households with cash savings, the pass-through to savings products is an opportunity to improve yields — but only if you shop around. Rates vary meaningfully between banks and between products, and promotional rates often revert to lower base rates after an initial period.

What Comes Next?

Attention turns to the next set of inflation and employment data, which will shape the RBA's next Monetary Policy Board decision. The March decision was carried by a narrow 5-4 majority, so the outlook for further moves is finely balanced. Scheduled meeting dates are published on the RBA website.

Calculate your new repayments: Mortgage Calculator | Compare options: Loan Comparison Calculator | Check your capacity: Borrowing Power Calculator.

Sources: Capital Brief, Savings.com.au, Yahoo Finance Australia, Big Four bank media releases (March 2026).