What Happens if the RBA 25bp Rate Hike?
If the RBA decides on a 25 basis point (0.25%) hike, the cash rate would move from 3.85% to 4.10%. Here's what that means for mortgage repayments.
Current cash rate
3.85%
Rate after 25bp rate hike
4.10%
+25bp
Mortgage repayment impact
Based on a 30-year principal & interest loan with 2.5% bank margin above the cash rate.
| Loan size | Current | After 25bp rate hike | Change |
|---|---|---|---|
| $300,000 | $1,867/mo | $1,916/mo | +$49/mo |
| $500,000 | $3,111/mo | $3,193/mo | +$82/mo |
| $750,000 | $4,667/mo | $4,790/mo | +$123/mo |
| $1,000,000 | $6,222/mo | $6,387/mo | +$164/mo |
Which meetings price a 25bp rate hike?
| Meeting | Probability |
|---|---|
| March 2026 | 22% |
| May 2026 | 56% |
| June 2026 | 20% |
| August 2026 | 42% |
| September 2026 | 14% |
| November 2026 | 16% |
| December 2026 | 9% |