Mortgage broker associations urge early home loan reviews as serviceability hurdles mount following RBA rate hike
Australia’s two major mortgage broker associations are urging brokers and borrowers to review home loans without delay after the Reserve Bank of Australia (RBA) lifted the cash rate by 25 basis points to 4.6% on Tuesday.
The Mortgage & Finance Association of Australia (MFAA) and the Finance Brokers Association of Australia (FBAA) both called for action before higher repayments take hold.
Tuesday’s decision is the fourth increase of the year and takes the cash rate to its highest level since November 2011.
The latest rise could add approximately $100 a month, or around $1,200 a year, to repayments on a $600,000 home loan. The exact amount depends on the borrower’s interest rate, loan term and their lender’s response.
“For a household already managing higher living costs, another $100 a month is meaningful. It is money that has to come from somewhere else in the family budget,” said Anja Pannek (pictured, left), chief executive of the MFAA.
“A cash rate of 4.60% makes it even more important for homeowners to look closely at their home loan rather than simply absorbing another increase without understanding what options may be available.
“The first step should be speaking with your mortgage broker and understanding your current position. That could mean asking your existing lender for a better rate, restructuring your loan or looking at whether refinancing to another lender could deliver a better outcome.”
Serviceability hurdles increase
The MFAA’s August 2026 Market Sentiment Survey of 588 mortgage brokers found:
- 96% had helped clients secure a discount in the previous six months
- 95% had helped clients refinance to another lender
- 91% had helped clients restructure their home loan
Refinancing is getting harder, however. The survey found 49.2% of brokers were seeing more clients unable to refinance because of serviceability requirements, up from 24.4% six months earlier. Serviceability is a lender’s assessment of whether a borrower can meet repayments, including under higher assumed rates.
“This is why getting on the front foot is important,” Pannek said. “Borrowers shouldn’t wait until they are struggling with repayments before reviewing their position. Speaking with a mortgage broker early gives them more time to understand their circumstances and what options may be available.
“A rate rise affects every household differently. The important thing is to know where you stand rather than assuming there is nothing you can do.”
Brokers urged to make the first call
Leo Gagic (pictured, right), chief executive of the FBAA, said brokers should contact clients rather than wait for them to reach out.
“Today’s RBA rate increase is yet another reminder that many Australian borrowers continue to face financial pressure. The months ahead may present further challenges for consumers,” he said.
“At the FBAA, we know the vital role brokers play during times like these. I encourage brokers to be proactive and connect with their clients, particularly those who may already be finding repayments difficult.
“A simple conversation can provide reassurance, help a client understand what this increase means for them and identify whether their lending arrangements should be reviewed.
“That guidance and support helps clients make informed decisions when they need it most.”
Tuesday’s increase ends the pause that followed the RBA’s decision to hold the cash rate in August.
