Banks have announced passing on full RBA rate rise to borrowers

Macquarie Bank has become the first big lender to confirmed it would pass on Tuesday’s cash rate hike to variable rate customers.

Just moments after the RBA announced it was increasing the cash rate from 4.10 to 4.35 per cent, Macquarie announced it would will pass on the rate hike in full.

This now the third interest rate hike in a row – a total of 75 basis points – and reverses the interest rate relief households received in 2025.

Macquarie Bank’s head of personal banking Ben Perham said they would delay passing on the increase by more than two weeks to support customers through the change.

“If your financial circumstances have changed, or you’re concerned about meeting your home loan repayments, we encourage you to get in touch with our team to understand what support may be available,” he said.

Canstar.com.au analysis shows the RBA’s increase will add around $91 to the monthly repayments of a $600,000 mortgage with 25 years remaining.

Across all three hikes, it totals an extra $272 a month. If the cash rate remains steady for the next 12 months, that’s an extra $3265 over the next year in mortgage repayments, compared to if there had been no hikes in 2026.

“It’s a return to Groundhog Day for borrowers across the country who are now being asked to hand over all three cash rate cuts from 2025,” Canstar data insights director Sally Tindall said.

“An extra $91 a month on a $600,000 mortgage might not sound like a budget-breaker in isolation, but stack three hikes together and that’s suddenly an extra $272, not just as a one off, but every single month for the foreseeable future.

“If the cash rate remains steady from here on in, households could end up forking out an additional $3300 in repayments in the next 12 months, compared to if there had been no hikes in 2026.

“That’s effectively like paying nearly a whole extra month in a year.”

She said even borrowers who did not reduce their payments when rates fell last year could still feel the pinch

“Borrowers who strategically kept their payments the same following each of the cash rate cuts last year are now back on notice, because their repayment buffer just went up in smoke,” she said.

“Sit down tonight, before banks start moving rates and do a sense check to see if you’re paying too much.

“If you are, you can haggle with your current lender, but know that the sharpest rates are typically reserved for those that make a switch.”