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General information only. This article summarises the Reserve Bank of Australia’s Monetary Policy Decision of 3 November 2026 and is general information, not financial or credit advice. Figures were correct at the time of publication. Strawberry Finance is a credit assistance provider.
The Reserve Bank of Australia lifted the official cash rate by 0.25 percentage points to 4.85% at its Monetary Policy Meeting on 3 November 2026. It is the fifth increase this year, it follows the September rise that took the rate to 4.60%, and it leaves the cash rate at its highest level in 18 years.
If you have a variable rate home loan in Perth, your lender will almost certainly pass this on. If you are still saving for your first place, your borrowing power has just moved again. This is what the RBA cash rate rise November 2026 actually changes, what it does not change, and the practical steps worth taking in the next few weeks.
The Monetary Policy Board was not unanimous. Six members voted for the increase and three voted to hold at 4.60%. The Board’s reasoning centred on an inflation outlook that has been revised materially higher, with fuel and commodity prices and tighter domestic capacity pressures doing much of the work.
On a 30-year principal and interest loan, a 0.25 percentage point increase adds roughly $16 per month for every $100,000 you owe. On a $500,000 loan that is about $82 a month. On $600,000 it is close to $99, and on $750,000 around $123.
Because the cash rate has now moved twice since August – from 4.35% to 4.60% in September and to 4.85% in November – the combined effect is roughly $33 per month per $100,000, or about $198 a month on a $600,000 loan, compared with where you were in winter. These are indicative figures based on a standard 30-year term; your actual repayment depends on your loan balance, remaining term, rate and lender, and most lenders apply the change two to four weeks after the announcement.
A rate rise is not a reason to panic, but it is a reason to look at your loan rather than let it drift. Most of the value available to Perth borrowers right now comes from pricing and structure, not from timing the market.
Higher rates reduce borrowing capacity, and lending volumes nationally reflect that. But a quieter market also means less competition at home opens and more room to negotiate, and the RBA itself expects higher rates and softer turnover to weigh on housing. For a disciplined Perth buyer with a stable deposit, a slower market can be a better entry point than a hot one.
The practical move is to get a current, accurate assessment of what you can borrow at today’s assessment rates rather than working from a figure you were quoted six months ago. Lender policies differ widely on how income, HECS debt, overtime and self-employed earnings are treated, and those differences can be worth more to your borrowing power than a small difference in advertised rate.
The RBA has not signalled where the cash rate goes next, and its own published forecasts point to inflation remaining above target into 2027. Market commentary after the decision was divided, which is a fair reflection of a 6-3 Board vote. No broker, bank or economist can tell you with certainty whether the next move is up, down or on hold.
What you can control is your own position: the rate you are paying, the structure of your loan, and how much buffer sits between your repayment and your income. Borrowers who review those three things after each decision tend to be in far better shape than those who wait for rates to fall.
The Reserve Bank of Australia set the cash rate target at 4.85% at its Monetary Policy Meeting on 3 November 2026, an increase of 0.25 percentage points from 4.60%. Six Board members voted for the increase and three voted to hold. It is the fifth increase of 2026 and the highest cash rate in 18 years.
As an indicative guide, a 0.25 percentage point increase adds around $16 per month for every $100,000 owing on a 30-year principal and interest loan – roughly $82 a month on $500,000 and close to $99 on $600,000. Your actual increase depends on your balance, remaining term, rate and lender. Most lenders apply the change two to four weeks after the RBA announcement and will write to you with the new repayment amount.
There is no single right answer. Fixing gives you repayment certainty for an agreed period, which helps budgeting, but it usually limits extra repayments, can restrict offset and redraw access, and carries break costs if you exit early. Staying variable keeps flexibility and lets you benefit if rates eventually fall. Some borrowers split the loan to get a measure of both. The right choice depends on your cash flow, your plans for the property and how much certainty you need, so it is worth working through with a broker rather than deciding on the headline rate alone.
Most lenders pass on cash rate increases in full on variable rate home loans, though the timing varies and a small number move by a different amount. Your lender is required to notify you of the change to your interest rate and repayments. If your lender has moved and you have not reviewed your rate in the last year, that notification is a good prompt to ask for a discount or compare the market.
Generally yes. Lenders assess your repayment capacity at your actual rate plus a serviceability buffer, so when rates rise the assessment rate rises with them and maximum borrowing capacity falls. How far it falls varies a lot between lenders, because policies on overtime, bonuses, HECS-HELP debt, rental income and self-employed income differ. If you were pre-approved earlier in 2026, it is worth having your capacity reassessed before you make an offer.
Act early rather than waiting for a missed payment. Contact your lender’s hardship team or speak to a broker about options such as repricing, refinancing, restructuring the loan term, or moving to interest only for a defined period. Each option has trade-offs – extending a loan term, for example, lowers the monthly repayment but increases total interest paid over the life of the loan. Free financial counselling is also available through the National Debt Helpline on 1800 007 007.
Note: This article is intended to provide general information only. It does not take into account the financial situation, objectives, or needs of any individual reader and must not be relied upon as financial product or credit advice. Cash rate and economic figures quoted are sourced from the Reserve Bank of Australia’s Monetary Policy Decision of 3 November 2026 and were correct at the time of publication; rates and lender pricing change and should be confirmed before you act on them. Any reference to future rate movements reflects published RBA commentary and market forecasts, not a prediction by Strawberry Finance. Readers should consider seeking independent financial or professional advice before making any financial decisions based on this information.
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