<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/australia" rel="" target="" title="Australian"><span>Australian</span></a><span> borrowers are bracing for mortgage pain as three of the big banks enforce the </span><a href="https://www.9news.com.au/reserve-bank-australia" target="" title="Reserve Bank's"><span>Reserve Bank's</span></a><span> latest interest rate hike today.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The RBA's monetary policy board unanimously decided to raise the </span><a href="https://www.9news.com.au/interest-rates" target="" title="cash rate"><span>cash rate</span></a><span> by 25 basis points, up to 3.85 per cent, at its first meeting of the year on February 3, in a move widely expected by economists.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>CBA, NAB and ANZ officially shifted their variable rates for home loan customers today after confirming they would pass on the hike in full.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/liberal-party-leadership-spill-angus-taylor-defeats-sussan-ley/e02a6189-6fb5-4262-af53-7c5acea1c826" target="_blank"><strong><span>Angus Taylor emerges victorious from leadership spill, ousting Sussan Ley as opposition leader after just nine months</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Westpac variable mortgage customers will see their rates increase on Tuesday.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While the majority of borrowers saw their rate rise this morning, lenders are required to give those paying minimum monthly repayments more time to gather the extra cash.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Lenders must send customers a letter before adjusting their repayment and give them time to prepare for this higher amount.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/rba-rate-hike-borrowers-urged-to-resist-interestonly-temptation-as-gruelling-cash-rate-hike-takes-effect/03c0922b-669c-43c3-9a28-d98db05a1f3c" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>After sending out letters to customers, Westpac, NAB and ANZ must give at least 30 days' notice before enforcing the new rate.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>CBA must provide a minimum of 20 days' notice.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The hike will </span><a href="https://www.9news.com.au/national/rba-february-2026-interest-rates-decision-what-this-means-mortgage-explained/2e9fa2e7-e7a6-4909-a7aa-4fdb9c626e5c" rel="" target="_blank" title=""><span>add around $100 to an average mortgage holder's monthly repayments</span></a><span>, although many borrowers have a buffer built up thanks to last year's three cuts.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Following the changes Westpac is set to offer the lowest advertised variable rate out of the major banks at 5.49 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>CBA's rates will today jump from 5.34 per cent to 5.59 per cent, the second most affordable option.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>NAB will have the highest rate at 5.94 per cent, while ANZ is set to offer 5.75 per cent from today.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>More broadly, the new average owner-occupier variable rate is estimated at 5.77 per cent, according to Canstar.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>More than 40 lenders are tipped to offer a lower rate of 5.50 per cent on the same loan, while the new lowest variable rate is likely to be 5.25 pr cent once all the RBA hikes are made.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Canstar Data Insights Director Sally Tindall urged borrowers to "be proactive" and request a rate review following the cash rate increase.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"For an owner-occupier who's paying down their debt, a competitive rate is now around 5.50 per cent, but, once the dust settles, we expect the market leader to sit closer to 5.25 per cent," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If you're sitting on a rate starting with a 6, there's no sugar coating it: you're paying a loyalty tax."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In addition to the variable hikes this morning, ANZ has increased fixed rates by up to 0.40 on its owner-occupier principal and interest rates, to 5.89 per cent for a one-year term.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/rba-february-2026-interest-rates-decision-what-this-means-mortgage-explained/2e9fa2e7-e7a6-4909-a7aa-4fdb9c626e5c" target="_blank"><strong><span>The RBA has hiked interest rates. So what does that mean for your mortgage?</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That means Westpac now offers the lowest fixed rate out of the majors at 5.49 per cent for a one-year term, followed by 5.74 per cent from NAB under the same conditions.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>CBA offers a minimum fixed rate of 5.94 per cent for a one-year term.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>No lenders are offering under five per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The lowest fixed rate is 5.09 per cent, according to Canstar, while seven lenders are offering fixed rates under 5.25 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Despite rates increasing on the whole, banks can still negotiate on an individual basis, Tindall said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If you haven't asked for a rate review in the last six months, pick up the phone or fire off a request from your banking app asking for one."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>She also advised mortgage holders to resist the temptation to extend their loan terms or switch to interest-only payments in the wake of the hike.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/powerball-80-million-jackpot-single-ticket-wins-entire-prize/51a54d51-c3d2-45c7-93c4-482ebf217cc8" target="_blank"><strong><span>Man misses 'so many' calls after winning entire $80 million Powerball jackpot</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Switching to an interest-only loan for two years would decrease monthly minimum repayments for a $600,000 debt by $576, but would cost an extra $27,982 in the long-term, Canstar data shows.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>For someone with the same debt, extending a 25-year loan term by five years would cost more than $134,000 over the life of the loan, despite minimum repayments dropping by $274 a month.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While these moves offer immediate relief, potentially dropping repayments by hundreds of dollars, they can come with a massive sting in the tail," Tindall said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Before you sign up for years of extra debt, call your bank and demand a better rate. It's one of the best ways to lower your repayments without increasing the total cost of your loan."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Homeowners have been warned to prepare for possible future rate hikes, with economists predicting a further increase when the RBA meets next in May.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>CBA, Westpac and NAB's cash rate outlook have all predicted a further 0.25 per cent increase in May, which would bring the cash rate to 4.10 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank" title=""><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>