The Reserve Bank of Australia has kept the cash rate on hold at 4.35% at its meeting today, 11 August 2026. After three rate rises earlier this year, that will come as welcome news for households across the country. But the RBA was careful to leave the door open to further increases — so it pays to understand what today’s decision really means for your mortgage.
What the RBA Said in Plain English
The decision to hold was unanimous, but the message was cautious rather than reassuring.
Inflation is still too high. The RBA does not expect it to return to the middle of its target range until late 2027, and warned there are risks it could stay higher for longer. Global oil supply disruption from the Middle East conflict is pushing up fuel prices, and those higher costs are flowing through to other everyday goods and services.
The housing market is already cooling. The RBA specifically noted that momentum in the housing market has shifted, with prices falling in some capital cities and new home loans declining noticeably. That is a direct result of the three rate hikes earlier in the year working their way through the system.
The Board is watching, and it is prepared to act. The RBA said plainly it will increase the cash rate again if inflation risks materialise. Today is a pause to assess — not a signal that rates have peaked.
What This Means for Your Home Loan
Your Repayments Don’t Change This Month
If you are on a variable rate, your repayments stay where they are for now. After three rises in 2026, many households have already absorbed hundreds of dollars in extra monthly repayments. A hold gives your budget a moment to breathe.
But Don’t Assume the Rises Are Over
The RBA has told us plainly that another hike is possible. If you have been managing your budget tightly, now is the time to check what a further 0.25% would do to your repayments — before it potentially happens.
Fixed Rate Rolling Off Soon?
If your fixed term is ending in the coming months, don’t simply let it roll onto your lender’s standard variable rate, which is rarely the sharpest deal available. This is exactly the moment to review your options and lock in something competitive.
Falling Home Prices Change the Picture
With prices softening in some cities, buyers may find more room to negotiate. For existing owners, it is worth remembering that your borrowing position is about your loan and your income — a stable rate environment is a good time to get your finance reviewed.
What You Should Do Now
Check your current rate. If you haven’t reviewed your home loan in the past 12 months, you may be paying more than a new borrower would today. A quick review costs nothing.
Stress-test your budget at a higher rate. Work out what one more 0.25% rise would mean for your repayments so there are no surprises.
Consider whether fixing suits you. With the RBA signalling possible further hikes, some borrowers value the certainty of fixing part or all of their loan. Whether it suits you depends on your budget and plans.
Talk to a broker. A broker can compare your rate across many lenders and handle a refinance from start to finish if a better deal is available.
Speak to a Mortgage Specialist
Today’s hold is a chance to get on the front foot with your home loan. Whether you want to review your rate, prepare for a fixed-term rollover, or simply understand your options, the right advice now can save you money and stress.
Our team works with home loan borrowers across Australia to find sharper rates and better loan structures. If you’d like a free review of your mortgage, get in touch.
Book a free home loan review today.
Explore your options on our website:
- Home Loans and Investment Property Loans
- Commercial Property Loans
- Business Loans & Equipment Finance
- Commercial Loan Calculators
- Current Commercial Interest Rates
- Refinancing for Business
This article is general information only and does not constitute financial advice. Based on the RBA cash rate statement of 11 August 2026. Rate decisions and lender pricing are subject to change. Please speak with a licensed mortgage broker for advice specific to your situation.
