What will we see with loan changes from RBA rate increase?

Loan changes from RBA rate increase announcements may be seen in existing variable rate loans across consumer, business and home loan markets. Lenders across most markets typically change their interest rates following a Reserve Bank cash decision. But those changes are not uniform across the lending industry. While mortgage rate changes are usually passed on in full to customers by lenders, changes in other sectors can vary. Lenders determine their own rates and the timing of any alterations, either up or down.

The March 17 decision by the Reserve Bank Monetary Policy Board sees the cash rate rise by 25 basis points to 4.1%. This is back to where the cash rate sat in February 2025, just over a year ago. Two rate cuts then followed in May and August as the rate of inflation started to fall.

The cash rate remained at 3.6% until the February 2026 when the RBA increased it to 3.85% following a significant spike in inflation. Inflation is again at the centre of the latest decision, fuelled in part by the effect on global oil markets and shipping of the conflict in the Middle East.

• What could happen with your loan?
• What interest rate will you get on a new loan?

For current loan holders and businesses and individuals planning to take on finance, we cover off on the March RBA interest rate decision and how competitive rates can be achieved through Jade.

What caused the RBA rate increase?

In announcing the RBA’s March monetary policy decision, Governor Bullock said Australia’s inflation rate was too high before the spike in fuel prices and the Middle East conflict. Ms Bullock explained that adjusting the cash rate was the RBA’s only tool for tackling inflation. The risk on not acting now was seen as too high as inflation could increase and be more difficult to control at a higher rate and a later time.

Uncertainty around the Middle East situation is a major concern to the Board with the timing of how long the conflict would continue and the effects on both the domestic and global economy unknown. The timing of the decision was given as the reason to a split between Board members. Five board members voted for a rate increase and four to hold the rate steady. But all were agreed that a cash rate increase was required. The four were in favour of waiting for further data and developments.

That data will be available on 25 March with the next inflation rate statistics from the ABS. The RBA Monetary Policy Board next meets on 4-5 May to make the next cash rate decision.

Consumer Loan Changes from RBA Rate Increase

Consumers with current loans that have a fixed interest rate will not see any change to the rate or repayments. These types of credit include Secured Loans for cars, boats, motorcycles and caravans and Personal Loans with a fixed rate. Loans at a variable interest rate such as Unsecured Personal Loans will be subject to the lender’s decision re adjusting the current rate.

New loan applications will be priced at current rates. We continually update our Rate Tables for buyers to get estimates on the finance they are planning.

Business Loan Changes from RBA Rate Increase

Commercial credit lenders can vary in their responses to RBA decisions. This sector can be highly competitive with many specialist non-bank lenders. Asset finance with fixed rates will remain unchanged over the full fixed term. Finance with variable rates including Lines of Credit, Trade Loans and Business Overdrafts are likely to change.

If planning to take on new finance, refer to our latest rates in the relevant market. Our rates have been updated to reflect the latest lender adjustments.

Home Loan Changes from RBA Rate Increase

Home loans are typically the first market to see changes following RBA cash rate decisions. The latest decision will see variable rate mortgages increase in line with the 0.25% increase as lenders pass on the rate rise.

For a $500,000 mortgage than can represent around a $76 increase per month, for a $600,000 mortgage approximately a $100 per month rise, and those with a $1,000,000 mortgage may expect an increase in the vicinity of $151 in monthly repayments. Dependent on lender and the current rate.

Mortgage holders that have effectively utilised their offset account in recent years, may be well-placed to handle their rate increase. Rate increases can be a good time to consider whether refinancing may improve your position. Mortgage holders can speak with our specialist mortgage brokers about their options for switching to a better rate.

Access Most Competitive Lending Rates

While lending rate markets are expected to rise following the RBA March decision, variations will continue to be seen across all sectors. With our access to 80+ lenders, we remain well-positioned to find customers their most competitive rate.

With loan changes from RBA rate increase, speak with a Jade Finance broker about your prospects for a better rate. 

DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.