Home loan borrowers face 25 basis point increases from May 15
Australia’s major banks have moved to raise variable mortgage rates after the Reserve Bank of Australia (RBA) increased the cash rate by 25 basis points.
Commonwealth Bank (CBA), NAB, Westpac and ANZ said their variable home loan rates would rise by 0.25% p.a., with changes taking effect on 15 May 2026.
Earlier, Macquarie Bank became the first major lender to confirm it would pass on the RBA’s 25-basis-point rate increase.
Amid the rate increases, the banks encouraged customers needing assistance to contact them or use available tools to manage their finances.
“Our focus is on supporting customers to stay on top of their finances with practical tools, clear guidance and access to help when it’s needed,” said Angus Sullivan (pictured right), group executive of retail banking at Commonwealth Bank.
“Adjusting how and when repayments are made can make a meaningful difference. For example, more frequent repayments may help reduce interest over time, while timing them with pay cycles can make it easier for customers to stay on track.”
CBA said customers could use its Lend a Hand page or contact the bank through the CommBank app to reach its Financial Assistance Solutions team.
“By having proactive conversations early and often, we can ensure we are providing the right support and solutions for our customers when they need it,” Sullivan added.
NAB, meanwhile, said it was focusing on helping borrowers understand how the increase would affect their repayments. The bank said support included budgeting tools, repayment flexibility and hardship assistance through NAB Care.
“While interest rates set the broader economic backdrop, what matters most for customers is how their repayments change and knowing there are options and support available if they need it,” said Ana Marinkovic (pictured right), group executive personal banking at NAB.
“If you’re feeling uncertain, the most important step is to reach out sooner rather than later so we can talk through what options might be right for your circumstances.”
Carolyn McCann (pictured right), chief executive, consumer at Westpac, said the bank was focused on supporting customers in the current economic environment.
“The conflict in the Middle East continues to create global uncertainty and impact inflation,” she added.
“We encourage customers who are feeling stretched to reach out early. We have a range of support options available and our teams are ready to help.”
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