---
title: RBA September 2026 Rate Decision: What To Do | GNT Finance
description: The RBA held the cash rate at 4.35% in August 2026 and meets again on 29 September. What Melbourne borrowers on fixed and variable rates should do before then.
url: https://gntfinance.com.au/blog/rba-september-2026-rate-decision-what-borrowers-should-do/
author: Gorakh Timilsina
published: 2026-08-29
category: Rates & market
---

# RBA September 2026 rate decision: what borrowers should do now

**In short:** The Reserve Bank held the cash rate at 4.35% in August 2026 and next meets on 29 September 2026. The major banks are split on when the next move comes and in which direction. Do not try to time it. Instead, check what rate you are actually paying, price a refinance, decide whether a split loan suits you, and build a buffer for a 0.25% rise either way.

Every RBA meeting produces a flood of predictions, and this one is no different. What is different in 2026 is how divided the forecasts are. Some bank economists have pencilled in a hike before Christmas, others see the cash rate parked at 4.35% well into 2027. When the experts disagree this much, the sensible response is to make your own position resilient rather than bet on a date.

## Where things stand at the end of August 2026

| Item | Position |
|---|---|
| Cash rate | 4.35% (held at the August 2026 meeting) |
| Next RBA decision | 29 September 2026 |
| Bank forecasts | Split on the timing and direction of the next move |
| Lender assessment buffer | Your rate plus 3 percentage points |

The cash rate is the benchmark, not your mortgage rate. Lenders set their own variable rates and move them independently, and they compete hardest for new borrowers. That gap between what new customers are offered and what existing customers pay is where most of your opportunity sits, regardless of what happens on 29 September. Our guide to [the RBA cash rate and your mortgage](/guides/rba-cash-rate-and-your-mortgage/) explains the link in detail.

## What a 0.25% move means in dollars

For illustration, at 6.00% p.a. over 30 years, principal and interest:

| Loan size | Monthly repayment at 6.00% | At 6.25% | Difference |
|---|---|---|---|
| $500,000 | $2,998 | $3,079 | $81 |
| $600,000 | $3,597 | $3,694 | $97 |
| $700,000 | $4,197 | $4,310 | $113 |

A single 0.25% rise on a $600,000 loan adds close to $100 a month. A cut of the same size returns it. Neither is life-changing on its own, but two or three moves in the same direction add up, which is why the buffer matters. Run your own numbers in the [mortgage repayment calculator](/calculators/mortgage-repayment/).

## If you are on a variable rate

### Check your rate against what your lender offers new customers

Log into your banking app, find your current rate, then look at what the same lender advertises for a new owner-occupier loan with your loan-to-value ratio. If there is a gap, ring them and ask for a pricing review. Lenders reprice existing loans every day to stop customers leaving. If they refuse, that is your answer.

### Price a refinance properly

For illustration, moving a $500,000 loan from 6.50% to 6.00% saves around $162 a month, or roughly $1,940 a year, before costs. Costs typically include a discharge fee from your old lender, government registration fees and any application or valuation fees from the new one. Some lenders waive fees or offer a cashback. Use the [refinance calculator](/calculators/refinance/) to see your break-even point and read our [refinancing guide](/guides/refinancing-guide/) before you decide.

### Keep paying as though rates rose

If you can afford it, set your repayment $100 above the minimum today. If the RBA hikes, you are already covered. If it cuts, you have quietly paid down principal. Our [extra repayments calculator](/calculators/extra-repayments/) shows how quickly that habit shortens a loan.

## If you are on a fixed rate

### Know your expiry date and what you roll onto

Fixed loans revert to the lender's standard variable rate at expiry, and that rate is often well above what new customers are offered. Put the expiry date in your calendar three months out. That is when you should be comparing options, not the week it ends.

### Do not break a fixed rate on a hunch

Break costs depend on the gap between your fixed rate and current wholesale rates, the remaining term and the loan size. They can be small or brutal. Get the exact figure from your lender in writing before you act, and read [breaking a fixed rate loan](/guides/breaking-a-fixed-rate-loan/) so you understand how the figure is calculated.

## Should you fix now, before 29 September?

Nobody knows. What we can say is that fixing is a decision about certainty, not about beating the market. If a rise of 0.50% would put your household under real strain, certainty has value for you and a fixed or split loan is worth pricing. If you have a healthy buffer and value flexibility, a variable loan with an offset account usually offers more.

### The split loan middle ground

A split loan fixes part of your balance and leaves the rest variable. For illustration, a $600,000 loan split 50/50 gives you a known repayment on $300,000 and keeps offset and extra repayment flexibility on the other $300,000. Try different splits in the [split loan calculator](/calculators/split-loan/) and see our [fixed vs variable guide](/guides/fixed-vs-variable-rate/) for the full trade-offs.

## A five-point checklist before the September meeting

1. Find your current rate and compare it to your lender's new-customer rate.
2. Ask your lender for a pricing review and note the outcome.
3. Get a written refinance comparison, including all fees, from a broker.
4. Decide whether a fixed portion would help you sleep, and price it.
5. Set your repayments at least one rate rise above the minimum if you can.

Do the first two this week. They cost nothing and take under an hour.

## Frequently asked questions

### Will the RBA raise rates on 29 September 2026?

We do not know, and neither does anyone else with certainty. The cash rate was held at 4.35% in August 2026 and the major banks are split on whether the next move is a hike or a cut and when it arrives. Plan for either outcome rather than positioning your whole loan around one forecast.

### Should I refinance before the RBA meeting or wait?

The RBA decision rarely changes the answer. If your current rate is materially above what new customers are being offered, refinancing makes sense now. If the gap is small, waiting costs little. Lenders reprice after RBA moves whether you refinance or not, so the comparison between lenders is what matters.

### Is it a good time to fix my home loan?

Fix if certainty matters more to you than flexibility, not because you expect to beat the market. Compare the fixed rate on offer with your current variable rate, consider a split, and check the break cost rules before signing. A fixed rate locks in both the upside and the downside for the term.

### How do I know if my lender is overcharging me?

Compare your rate with the rate your lender advertises for a new borrower with the same loan type and loan-to-value ratio. A gap of more than about 0.25% is a signal to ask for a review or refinance. A broker can run this comparison across many lenders in one sitting.

## Talk to GNT Finance

You do not need to predict the RBA to get a better deal before 29 September. GNT Finance will compare your current loan against the market, ask your lender to sharpen up, and show you exactly what a refinance or split would save. [Book a free consultation](/contact/) or call Gorakh Timilsina on 0426 403 703.