Big Four banks pass on 0.25% rate rise from 15 May

CBA, NAB, Westpac and ANZ will lift variable home loan rates by 0.25% on 15 May 2026, adding roughly $80 per month to a $500,000 mortgage.

Australia's major banks have moved in lockstep to pass on the Reserve Bank of Australia's 5 May rate hike in full. Commonwealth Bank, NAB, Westpac and ANZ each confirmed they will lift variable home loan rates by 0.25%, with changes effective 15 May 2026. Macquarie Bank was first to announce, with its variable rates lifting from 22 May 2026.

For variable-rate borrowers, this means a third repayment increase in 2026. The question now is what you can do about it before the change hits.

The Dollar Impact — and What Each Bank Is Saying

The numbers are concrete. A 25-basis-point increase adds approximately $80 per month to repayments on a $500,000 variable owner-occupier home loan on principal and interest terms. Most borrowers are carrying significantly more debt; the average new mortgage written in the December quarter of 2025 was $736,000, where the full pass-through adds around $119 per month.

CBA's group executive of retail banking, Angus Sullivan, said the bank was "focused on supporting customers to stay on top of their finances with practical tools, clear guidance and access to help when it's needed." He noted that adjusting repayment frequency — switching from monthly to fortnightly, for example — can reduce interest costs over time. Customers needing support can contact CBA's Financial Assistance Solutions team through the CommBank app.

NAB's group executive personal banking, Ana Marinkovic, said: "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." NAB's support services include budgeting tools, repayment flexibility and hardship assistance through NAB Care.

Westpac's chief executive consumer banking, Carolyn McCann, acknowledged the ongoing strain from global uncertainty and "encouraged customers who are feeling stretched to reach out early." ANZ's group executive Australia retail, Pedro Rodeia, said his team was "ready to provide guidance, practical tools and tailored support to help you manage your finances and plan with confidence."

Macquarie Bank's head of personal banking, Ben Perham, noted the bank was "once again delaying this increase by more than two weeks" to give customers additional time to adjust. Macquarie also confirmed it would lift interest rates on its everyday variable-rate bank accounts alongside the home loan changes.

What to Do Before 15 May

Two weeks is a short runway but long enough to do one genuinely useful thing: compare your current rate to what else is available in the market. If your lender hasn't proactively offered you a lower rate, the onus falls on you to ask — or to find a better deal elsewhere.

[Check today's most competitive home loans](/home-loans/cheapest) to see where the market sits right now. Then run our [refinance savings calculator](/calculators/refinance-savings) to estimate whether switching would put money back in your pocket after factoring in any exit fees or setup costs.

Refinancing typically takes three to five weeks, so shifting before 15 May is tight. A more realistic goal is to have a new loan settled within four to six weeks of today, meaning you benefit from a lower rate shortly after your current lender's increase kicks in, rather than months down the track.

If switching doesn't make sense right now — perhaps because you're still in a fixed-rate period, or the loan balance is modest — the next best move is to call your lender and ask for a rate reduction. Banks routinely offer existing customers sharper pricing to retain their business, and many have delegated authority to provide a meaningful discount outside of formal campaigns. It takes one phone call.

For customers genuinely struggling with repayments, hardship support is available at each major bank and using it does not automatically affect your credit file. Contact your lender's hardship team early — they'd rather hear from you now than manage a missed payment later.

Investors should note the rate increase applies to all variable loan types, including interest-only investment loans. Tax deductibility of interest softens the after-tax cost, but the higher rate still affects cash flow and serviceability calculations. Now is a sensible time to [review investor loan options](/home-loans/investor) and confirm your loan structure makes sense at the new rate level.

First home buyers and those currently shopping for a home loan should incorporate the post-15 May rate into their repayment modelling. Our [repayment calculator](/calculators/repayment) lets you run the numbers at any rate.

Full details on all bank announcements can be found in [MPA Australia's reporting](https://www.mpamag.com/au/news/general/big-four-banks-pass-on-rba-rate-rise/574060).