On 29 September 2026, the Reserve Bank of Australia announced a 0.25 percentage point increase in the cash rate target, taking it from 4.35% to 4.60%, effective 30 September 2026.
The four major banks have announced 0.25 percentage point increases to their variable home loan rates, effective 9 October 2026. Other lenders may apply different changes or effective dates.
For Perth homeowners with variable-rate loans, now may be a good time to understand what the change means for your repayments and review whether your current home loan still suits your circumstances.
A 0.25 percentage point increase may sound small, but it can increase monthly repayments and the total interest payable over the remaining loan term. The actual impact will depend on your loan balance, interest rate, remaining term and repayment structure.
Perth's property market has also shifted. Recent REIWA data shows an increase in properties listed for sale and an easing in buyer demand, while property values remain substantially higher than a year ago.
Here are five practical steps you can consider following the latest rate increase.
Step 1: Calculate your new home loan repayment
Your first priority is understanding how the rate change affects your own loan.
Check your lender's notice, online banking account or loan statement to confirm your current interest rate, new rate and expected repayment.
If you have a variable-rate loan, consider checking:
- What will my new interest rate be?
- When will the change take effect?
- Will my repayment increase automatically?
- Will the loan term change?
- Are there any upcoming fees or changes to my account?
The effect of a 0.25 percentage point increase will depend on your outstanding loan balance, repayment type and whether you have 20, 25 or 30 years remaining on your loan.
A loan with a shorter remaining term will generally require higher repayments than the same loan balance over a longer term. Extending a loan term may reduce required repayments but can result in more interest being paid over the life of the loan.
You can use FinanceCorp's loan repayment calculator to estimate how a change in interest rate could affect your repayments:
https://financecorp.com.au/loan-repayment-calculator/
Calculator results are estimates only. Your actual repayments will depend on your lender, loan balance, interest rate, remaining term, repayment type and applicable fees.
Once you understand the likely impact, you can review your household budget and determine whether the increased repayment creates any pressure on your cash flow.
Step 2: Compare your current home loan
Staying with your current lender may be convenient, but it can still be worthwhile reviewing your loan from time to time.
Different lenders have different interest rates, lending policies, fees and loan features. Your financial circumstances may also have changed since your current loan was established.
When comparing home loans, don't look only at the advertised interest rate.
Consider:
- The comparison rate where applicable
- Annual and monthly account fees
- Offset account availability
- Redraw facilities and rules
- Extra repayment limits
- Fixed-rate break costs
- Loan-to-value ratio requirements
- Whether a rate is introductory or ongoing
- Discharge, application, settlement and valuation fees
FinanceCorp has access to a panel of more than 25 lenders and hundreds of loan products.
The lenders and products considered will depend on your individual circumstances, eligibility, requirements and applicable lender criteria.
Different lenders can also have different policies for income, employment and financial circumstances, which can make comparing options particularly useful for borrowers who don't necessarily fit standard lending criteria.
The lowest advertised interest rate is not automatically the most suitable loan. The overall loan structure, fees, features and flexibility should also be considered.
Step 3: Ask your current lender to review your rate
Before considering a refinance, you may wish to contact your existing lender and ask whether they can review your current interest rate.
Some lenders have retention or repricing teams that can review the pricing available to existing customers.
Before contacting your lender, it can help to have the following information available:
- Your current loan balance
- Your property's estimated value
- Your current interest rate
- Your repayment history
- Comparable home loan rates
- Any significant changes to your financial position
- Loan features you would like to retain, such as an offset account
You can explain that you are reviewing your home loan following the recent rate increase and would like to know whether a more competitive rate is available.
If an alternative rate is offered, ask for the details in writing and check whether there are any changes to fees, features or loan conditions.
A lower interest rate may not necessarily provide a better overall outcome if additional fees apply or important loan features are removed.
If your lender doesn't offer a more competitive rate, you may wish to compare your existing loan with other available options.
A mortgage broker in Perth can help you understand the differences between your current loan and other options that may be available through their lender panel.
Learn more:
https://financecorp.com.au/mortgage-broker-perth/
Step 4: Consider whether refinancing or restructuring may be appropriate
Refinancing involves replacing your existing home loan with another loan, either with your existing lender or a different lender.
People may consider refinancing for a range of reasons, including reviewing their interest rate, accessing different loan features or changing the way their loan is structured.
However, refinancing isn't automatically suitable for everyone.
Before changing loans, consider both the potential benefits and the costs involved.
Possible switching costs can include:
- Discharge fees
- Application fees
- Valuation fees
- Settlement or registration charges
- Fixed-rate break costs
- Additional loan fees
- Possible Lenders Mortgage Insurance if applicable
You should also consider your property's current value.
Changes in property values can affect your loan-to-value ratio. However, you should not assume what your property will be valued at, as lenders may use their own valuation processes when assessing an application.
Buying your first home in WA?
If you're planning to purchase rather than refinance, remember to factor transfer duty into your calculations.
For eligible first-home buyers entering into qualifying transactions on or after 7 May 2026, Western Australia's current rules provide a full transfer duty exemption for eligible homes valued up to $600,000, with a concessional rate applying to eligible homes valued between $600,001 and $800,000.
Eligibility requirements apply and government schemes and thresholds can change.
Check the current WA Government information before relying on these thresholds:
https://www.wa.gov.au/organisation/department-of-treasury-and-finance/transfer-duty-assessment
Refinancing or restructuring should ultimately leave you with a loan that remains appropriate for your circumstances and financial position.
Step 5: Review your offset, extra repayments and fixed-variable options
Your interest rate is only one part of your home loan.
How your loan is structured and how you use its features can also affect the amount of interest you pay.
Review your offset account
An offset account is a transaction account linked to an eligible home loan.
The balance held in the offset account can reduce the loan balance used to calculate interest, subject to the lender's terms.
For example, if you owe $500,000 and maintain $20,000 in a linked 100% offset account, interest may generally be calculated on approximately $480,000 rather than the full $500,000, subject to your lender's terms and loan structure.
Check:
- Whether your account provides a genuine 100% offset
- Whether monthly or annual fees apply
- Whether your salary and regular income are being paid into the account
- How you're using the account for everyday expenses
- Whether the potential interest benefit outweighs the cost of the account or loan package
Extra repayments
Depending on your loan, you may also be able to make additional repayments.
Additional repayments can reduce your outstanding loan balance and may reduce the amount of interest paid over time.
However, some loans, particularly fixed-rate loans, can limit the amount you can repay without additional costs.
Check your loan terms before making significant additional repayments.
Fixed and variable loan splits
Another structure some borrowers consider is splitting their home loan between fixed and variable portions.
A fixed portion can provide greater certainty around repayments for a set period, while a variable portion may provide greater flexibility and access to features such as an offset account or additional repayments.
Fixed-rate loans can have restrictions and break costs, so make sure you understand the terms before making changes.
It can also be important to maintain accessible emergency savings rather than directing every available dollar towards your home loan.
A straightforward Perth home loan review
A rate increase doesn't necessarily mean you need to refinance.
It does, however, provide a useful opportunity to understand what you're currently paying and whether your home loan still suits your circumstances.
Start by confirming your new repayment.
Then consider reviewing your current rate, fees and features, asking your existing lender whether better pricing is available and comparing other options where appropriate.
FinanceCorp's Home Loan Health Check can help you review your existing home loan and understand the options that may be available.
Where appropriate, your Finance Manager can compare suitable options from FinanceCorp's panel of more than 25 lenders and explain relevant features, costs and considerations.
The lenders and products available will depend on your individual circumstances, eligibility and lender criteria.
Start a Home Loan Health Check:
https://mortgage-check.com.au/loan-health-check
Learn more about refinancing:
https://financecorp.com.au/refinancing-home-loan
Contact FinanceCorp:
https://financecorp.com.au/contact/
Phone: 1300 410 784
The right home loan isn't necessarily the one with the lowest advertised interest rate. The rate, fees, features, flexibility and overall loan structure all need to be considered.
Quick Home Loan Checklist for Perth Borrowers
- Confirm your new variable interest rate and effective date.
- Calculate your expected new repayment.
- Review your household budget and emergency savings.
- Check your current interest rate, fees and loan features.
- Ask your existing lender whether your rate can be reviewed.
- Compare other loan options where appropriate.
- Check refinancing and switching costs.
- Review your offset account and extra repayment rules.
- Consider whether your current fixed or variable structure remains suitable.
- Check current WA transfer duty rules if you're planning to buy.
- Consider completing a Home Loan Health Check before making changes.
Important Information
This article contains general information only and does not take into account your individual objectives, financial situation or needs. It is not a recommendation that you apply for, refinance, vary or remain in any particular credit product.
Interest rates, fees, lender policies, property market information and government concessions can change. Eligibility for any loan or government concession is subject to applicable criteria.
Before acting, consider your own circumstances and whether the relevant loan structure is appropriate for you. Credit applications are subject to lender eligibility, assessment and approval.
FinanceCorp has access to a panel of lenders. Not all lenders or products available in the market are included on our panel.
Please refer to FinanceCorp's website for applicable credit licensing and Credit Representative information.