Following the latest RBA rate rise, many Australians are reassessing their home loans and asking an important question:
Should I stay variable, fix my rate, or restructure my loan?
The Reserve Bank of Australia increased the cash rate yesterday, and while rate movements are part of the economic cycle, they can have a direct impact on household cash flow, particularly for borrowers on variable rates.
Now is an ideal time to review whether your current loan structure still suits your goals.
How the RBA Rate Rise Impacts Borrowers
If you’re on a variable home loan, this rate increase is likely to result in higher repayments, either immediately or once your lender passes the change on.
If you’re on a fixed rate, your repayments may not change right now, but it’s still critical to understand:
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When your fixed period ends
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What rate you may revert to
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Whether your loan structure remains appropriate in the current market
A rate rise doesn’t automatically mean you should change your loan, but it does mean it’s time to review it.
Fixed vs Variable Home Loans: What Are Your Options?
When reviewing your loan after an RBA rate rise, most borrowers consider three main structures.
Variable Home Loans
Variable loans adjust as rates move and typically offer greater flexibility, including:
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Unlimited extra repayments
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Access to redraw or offset accounts
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Easier refinancing or restructuring
They can suit borrowers who value flexibility or expect changes such as selling, renovating, or accessing equity.
Fixed Home Loans
Fixing your rate provides certainty. Your repayments remain stable for the fixed term, even if rates rise again.
However, fixed loans often come with limitations:
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Restrictions on extra repayments
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Limited or no access to redraw
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Break costs if you refinance or sell early
This makes it essential to consider your future plans before locking in a fixed rate.
Split Loans
A split loan combines both fixed and variable components.
This structure can:
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Provide repayment certainty on part of your loan
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Maintain flexibility through the variable portion
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Reduce exposure to future rate movements
For many Australians, a split loan offers a balanced approach in a changing rate environment.
Loan Restructuring in Australia: Why Your Future Plans Matter
Before fixing your rate or restructuring your loan, it’s important to look ahead — not just at today’s rate.
Consider whether you plan to:
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Sell your home
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Renovate or build
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Access equity for investment or personal use
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Change employment or income structure
Fixed loans can limit your ability to adapt to these changes and may result in costly break fees if exited early.
Loan restructuring in Australia works best when it aligns with both your financial position and your lifestyle plans.
Why Reviewing Your Loan Now Can Save Money Long Term
Many borrowers stay with their existing loan simply because it feels easier — but over time, this can lead to:
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Higher interest costs
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Reduced cash flow
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Missed opportunities to restructure or improve loan features
A proactive loan review can help:
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Identify better suited loan structures
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Improve repayment efficiency
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Ensure your loan supports future plans, not restricts them
Often, small changes in structure can make a meaningful difference over the life of the loan.
Final Thoughts on the RBA Rate Rise
An RBA rate rise doesn’t mean you need to panic, but it does mean it’s time to be proactive.
Understanding the difference between fixed vs variable home loans, and knowing when loan restructuring in Australia makes sense, can help you stay in control of your finances, even in a changing rate environment.
At Your Finance Broker, our focus is education first. We help you understand your options so you can make confident, informed decisions about your loan, now and into the future.