Millions Face Higher Rates as Friday the 13th Strikes Again
On February 13, 2026, millions of borrowers across Australia face increased mortgage repayments due to the Reserve Bank of Australia’s (RBA) recent interest rate hike. The RBA has raised the cash rate by 25 basis points, impacting homeowners directly. Primarily, this change will affect those with variable loans, as three major banks—Commonwealth Bank, NAB, and ANZ—plan to implement this increase starting February 13.
Impact of Interest Rate Hike
This new interest rate will start accruing immediately for those on interest-only repayment plans. Those making principal and interest repayments may not notice a change right away, as lenders must provide a minimum of 20 days’ notice before adjusting monthly repayments. Thus, notifications about updated repayment rates will soon reach most borrowers.
- CBA, NAB, and ANZ: Rates effective February 13.
- Westpac customers will see changes starting February 17.
Expected Increases in Monthly Repayments
Borrowers nationwide can expect substantial increases in their monthly repayments. Real estate analysis indicates that a typical borrower purchasing a median-priced home can see their repayments rise significantly across major cities:
| City | Current Median Value | Loan Amount | Current Monthly Repayment | Repayment with 25bp Hike | Monthly Difference |
|---|---|---|---|---|---|
| Sydney | $1,617,000 | $1,293,600 | $7,344.92 | $7,549.10 | $204.18 |
| Brisbane | $1,178,000 | $942,400 | $5,350.84 | $5,499.59 | $148.75 |
| Perth | $1,045,000 | $836,000 | $4,746.72 | $4,878.67 | $131.95 |
| Adelaide | $996,000 | $796,800 | $4,524.14 | $4,649.91 | $125.77 |
| Melbourne | $1,007,000 | $805,600 | $4,574.11 | $4,701.26 | $127.15 |
| Canberra | $1,012,000 | $809,600 | $4,596.82 | $4,724.61 | $127.79 |
Broader Economic Context
Inflation has surged, with RBA forecasts indicating it may not stabilize within the targeted range until mid-2028. This economic situation raises concerns over potential future rate hikes, which could further burden home buyers.
A borrower purchasing a median-priced home could see annual repayment increases totaling thousands of dollars, significantly impacting affordability across the country.
Market Trends and Borrower Preparedness
Data from the Commonwealth Bank suggests that high-income earners dominate home loan applications, limiting opportunities for lower- and middle-income households. A recent survey indicates about 13% of borrowers may struggle to meet repayments after this increase.
The survey notes that over 25% of new borrowers were unprepared for the interest rate hike. This highlights the ongoing challenges in the housing market, as many who recently acquired loans face financial strain due to rising interest rates.
This Friday the 13th marks an unusual but significant day for millions of Australians and their mortgage obligations, emphasizing the importance of strategic financial planning in uncertain economic times.
