For home owners, making sure you’re on a competitive interest rate hasn’t been this important to your household budget in years.

On Tuesday, the Reserve Bank of Australia lifted the official cash rate for the fifth time in 2026, pushing it to 4.85% – higher than it’s been since 2008.

That rate hike came just a day after property research group Cotality reported national house prices had fallen for a seventh consecutive month, with home values declining at the fastest rate of the past 40 years.

If you’re looking for a better home loan deal, here are three things worth considering first. And if you’re starting to wonder how you’ll afford higher repayments, it’s important to know when to call your bank for help.

Read more: RBA hikes interest rates to an 18-year high, warning inflation will hurt for another year

1. Compare your rate – and don’t forget fees

Before Tuesday’s rate hike, you could get variable rates as low as 6.09% with a non-bank lender or 6.35–6.7% with a mainstream bank. So assuming most banks pass on this week’s 0.25 basis point rate rise in full, the rate for a basic variable loan from a major bank should soon be about 6.6–7.0%.

If your loan rate is higher than that, it’s worth asking for a better deal from your own bank or exploring refinancing with a new lender.

Banks often advertise lower rates to........

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