What number should your interest rate have in front of it?
News Source
β’Mon, 2 Nov 2026 18:40:26 +0000
π° What Happened
The Reserve Bank is expected to raise the cash rate to 4.85% on Tuesday, the fifth rise this year. That would push interest rates to an 18-year high.
Borrowers on variable loans would likely see repayments rise by 0.25 percentage points. Experts say it is a good moment to ask your bank for a better rate or to shop around.
π The Backstory
The average variable rate is about 6.49%. Canstar's Sally Tindall said the best variable rate was 5.89% on Tuesday morning. Finance expert Mardy Chiah says any rate at or above 6.5% is worth renegotiating.
Cutting a $500,000 loan from 6.5% to 6% could save about $160 a month, or nearly $2,000 a year. Not every borrower can refinance, because lenders check income, equity and living costs.
π― Why It Matters
Small rate cuts can save hundreds of dollars a year. Many borrowers never think to ask their lender for a better deal.
The Reserve Bank is expected to raise the cash rate to 4.85% on Tuesday, the fifth rise this year. That would push interest rates to an 18-year high.
Borrowers on variable loans would likely see repayments rise by 0.25 percentage points. Experts say it is a good moment to ask your bank for a better rate or to shop around.
The average variable rate is about 6.49%. Canstar's Sally Tindall said the best variable rate was 5.89% on Tuesday morning. Finance expert Mardy Chiah says any rate at or above 6.5% is worth renegotiating.
Cutting a $500,000 loan from 6.5% to 6% could save about $160 a month, or nearly $2,000 a year. Not every borrower can refinance, because lenders check income, equity and living costs.
Small rate cuts can save hundreds of dollars a year. Many borrowers never think to ask their lender for a better deal.