Rates rose again: how to ask your bank for a lower rate before 13 November
The fifth rate rise of the year hits variable loans from Friday 13 November. Work out what it costs you per pay, and what one phone call to your bank could win back.
Rates went up again on Melbourne Cup day. It was the fifth rise this year, and it takes the cash rate to 4.85%, the highest since 2008 (RBA). If you're on a variable rate with one of the big four, your repayments go up from Friday 13 November (Savings.com.au).
It's landing on a lot of people at once. Almost a third of mortgage holders were already at risk of mortgage stress in September, before this rise (Roy Morgan). Rents are up 5.5% on a year ago (Cotality), and Christmas is about six weeks away.
I've got a mortgage too, and this week I'm calling my bank to review mine. You can't change the cash rate, and neither can your bank, but the rate you pay is sometimes one phone call away from coming down. It's worth knowing what that call is worth before you make it.
What the rate rise costs you, per pay
Banks talk in monthly repayments, but most of us aren't paid monthly. So here it is per pay. Put in your loan:
What the rate rise costs you
At 6.74%, the repayment is about $1,912 a fortnight. If you've been on a variable rate all year, the five rises of 2026 add about $213 a fortnight in total.
Principal and interest, assuming your lender passes on the full 0.25%. An estimate, not a quote from your lender.
As a rough guide, this rise adds about $1.60 a month for every $10,000 you owe on a 25-year loan, or about $16 for every $100,000.
What one phone call could be worth
Banks can lower the rate on a loan you already have, and they often do for customers who are ready to leave. In one survey, 49% of mortgage holders who planned to switch stayed after their bank offered them a lower rate (Money.com.au). Yet 37% of Australians say they've never asked their lender for a better deal (Finder).
Slide to see what a lower rate would be worth on the loan above:
What one phone call could be worth
From 6.74% to 6.44%. That's about $1,350 a year, more than this rise costs you.
Uses the loan above. What your bank offers, if anything, is up to them.
A cut of 0.25% cancels out this rise. Anything more leaves you better off than you were before Cup day.
Before you call
Ten minutes of homework makes the call shorter and the answer better. Tick these off as you go:
Before you call · tick as you go
What to say
Keep it short and friendly. The person on the phone didn't set the cash rate, and they're more likely to help someone who's easy to deal with.
What to say
Hi, I'd like a rate review on my home loan, please. I'm on your rate variable. I can see you offer new customers their best rate, and another lender has offered me the other rate. Can you match it or do better? If not, I'll look at switching, so could you tell me what a discharge involves?
Fill in the gold bits before you call.If the first person can't change your rate, ask to be put through to the team that handles customers who want to leave. Write down whatever they offer and the date it starts.
If they won't move
Switching to another lender can still be worth it, but count the costs first. Moneysmart lists discharge and application fees, break costs on a fixed rate, and lenders mortgage insurance if you own less than 20% of your home (Moneysmart).
Keep the same loan term, too. Stretching a loan back out to 30 years lowers the repayment but adds years of interest. Moneysmart's free switching calculator shows how long the savings take to cover the costs.
Renting? The rise reaches you too
Landlords' loans went up as well, and rents rose 5.5% in the year to September (Cotality). In Victoria, rent can usually go up only once every 12 months, with at least 90 days' notice on the proper form. You can ask Consumer Affairs Victoria for a free rent assessment within 30 days of getting the notice (CAV). Other states have their own rules, so check yours.
If your rent is going up, turn it into a per-pay number now:
Rent going up?
That's $2,080 a year. Give it a place in your pay now, before the first higher payment.
Put the new number into your next pay
Whatever the call brings, the new repayment or rent needs a place in your pay before 13 November, not after. If it squeezes something else, Christmas often has the most room to bend, and you can work it back from the pays you've got left.
If you can't keep up with repayments, call your lender early and ask about hardship options. They have to reply in writing within 21 days (Moneysmart), and the National Debt Helpline is free on 1800 007 007.
One pay at a time. Did you plan your next pay?
Rate rise questions
How much will my mortgage go up after the November rate rise?
If your lender passes on the full 0.25%, about $16 a month for every $100,000 you owe over 25 years, or about $94 a month on $600,000. The calculator above shows yours per pay.
When do the banks pass on the rate rise?
The big four lift their variable rates from 13 November (Savings.com.au). Other lenders set their own dates, so check the notice from yours. A fixed rate doesn't change until the fixed term ends.
Can you negotiate your home loan interest rate?
Yes. Lenders can lower the rate on an existing loan, and it helps to know their new-customer rate and have a rate from another lender. This is general information, not advice about any loan.
Is it worth refinancing?
It depends on the gap between the rates, the fees and how long you'll keep the loan. Moneysmart's free mortgage switching calculator shows how long the savings take to cover the costs.
What if I can't afford my mortgage repayments?
Contact your lender early and ask about hardship options. They must reply in writing within 21 days (Moneysmart). If you can't agree, AFCA offers free dispute resolution, and the National Debt Helpline is on 1800 007 007.
When will interest rates go down?
Nobody can say for sure. The Reserve Bank's next decision is on 8 December. Planning around the rate you pay now is safer than planning around a cut that might not come.
This article is general information, not financial or credit advice, and it doesn't recommend any lender or loan. The calculators are estimates. Figures are from the sources linked, on the dates shown.
That's the whole drop.
You read to the end, so it's full. Give your next pay the same treatment and it stays that way.
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