The Reserve Bank of Australia (RBA) plays a pivotal role in determining the cost of your home loan. As we enter 2026, the Australian mortgage landscape continues to evolve. Whether the RBA is holding, raising, or cutting the cash rate, the impact on your monthly repayments and borrowing capacity is significant.
After a period of fluctuations throughout 2025, the RBA has maintained a cautious stance. With the official cash rate currently sitting at 3.60% (following the December meeting), many economists are looking toward the February 2026 board meeting for signals on the next move.
Inflation Outlook: While headline inflation has moderated, the RBA remains focused on bringing it sustainably within the 2–3% target band.
Market Sentiment: Most experts predict a hold in the immediate future, though some suggest potential for rate adjustments later in the year depending on employment and services inflation data.
Variable Rate Borrowers: When the RBA changes the cash rate, most lenders follow suit. A 0.25% decrease could save a borrower with a $750,000 loan approximately $150–$200 per month in interest.
Fixed Rate Expirations: If you are among the many Australians coming off a low fixed rate from previous years, you may be facing a “loyalty tax”. AB Mortgage Solutions helps you compare your current cliff rate against the market to find a competitive alternative.
Borrowing Power: Higher interest rates generally reduce the maximum amount you can borrow. If you’re planning to buy in Melbourne’s competitive suburbs like Williams Landing, Point Cook, or Truganina, knowing your exact borrowing capacity is crucial.
Navigating RBA announcements can be overwhelming. As your local Melbourne mortgage experts, we do the heavy lifting for you:
Rate Comparisons: We analyze products from over 30 lenders to see who is passing on RBA cuts the fastest — and who is lagging behind.
Refinancing Health Checks: If your lender hasn't lowered your rate in line with market trends, we’ll help you switch to one that values your business.
Personalised Advice: Every household is different. Whether you want to rebuild your savings buffer or pay off your loan faster while rates are stable, we provide a strategy tailored to your goals.