03/11/2026
RBA CASH RATE REACHES 4.85%: AUSTRALIA'S HIGHEST LEVEL IN ALMOST 18 YEARS
What does this mean for mortgage affordability, borrowing capacity and property investment decisions?
The Reserve Bank of Australia has increased the official cash rate by 25 basis points, from 4.60% to 4.85%, following its 3 November 2026 monetary policy meeting.
This represents the highest cash rate target since November 2008, highlighting the ongoing challenge of controlling inflation while households and businesses face elevated borrowing costs.
Why is this significant?
Persistent inflation, global energy costs and domestic price pressures have complicated the economic outlook.
For mortgage holders, prospective buyers and property investors, another rate increase may have implications beyond monthly repayments.
Five things Australian borrowers should consider
1. Mortgage repayments. If lenders pass on the rise, variable-rate repayments may increase. On a $600,000 principal-and-interest loan with 30 years remaining, a rise from 6.00% to 6.25% could add about $98 a month.
2. Borrowing capacity. Higher rates can affect how much you can borrow, especially if you have other debts. Each lender assesses income and expenses differently.
3. Refinancing. Compare rates, total loan costs and refinancing fees. Consider how fixed or variable rates, offset accounts, redraw and repayment flexibility fit your long-term needs.
4. Property investment. Higher borrowing costs can reduce cash flow. Review rental income, equity, property expenses and existing commitments before borrowing more.
5. Long-term planning. Review your repayment buffer and how you manage debt to see whether your budget can handle further rate changes.
At Gain Home Loans, we help you understand your borrowing position and compare mortgage options that suit your goals.
📞 1800 467 959
🌐 www.gainhomeloans.com.au
Source: Reserve Bank of Australia, Monetary Policy Decision, 3 November 2026.
General information only. Lender pricing, eligibility and loan outcomes may vary.
