Cash Rate Now 4.85%: The Fifth RBA Rise Of 2026 And Your Repayments
The Reserve Bank of Australia raised the cash rate target by 25 basis points, from 4.60% to 4.85%, on Tuesday 3 November 2026. It is the fifth rise this year. Six of the nine board members voted to lift the rate and three voted to hold. Variable-rate borrowers should expect higher repayments once their lender passes the rise on, and buyers and Airbnb owners should check their numbers this week.
SLScott LevouneFounder, Wealth Through PropertyUpdated 4 Nov 2026•9 min read•✓ Facts checked against official sources
The cash rate is now 4.85%, up from 4.60%. The RBA says inflation is elevated and broadly based, and that it is not expected back in the 2 to 3 per cent target range until late 2027. On an illustrative $600,000 loan, this one rise adds roughly $93 a month. Stress-test your cash flow now, because the RBA has not ruled out further moves.
What To Do This Week
1Find your new repayment: your lender will confirm the date the higher rate applies.
2Re-run your numbers: test your budget or Airbnb cash flow at a rate another 0.50% higher.
3Compare your loan: ask your lender or broker whether your rate is still competitive.
4Mark 8 December: the next RBA decision falls on that date.
What the RBA decided on 3 November 2026
The Reserve Bank's media release of 3 November 2026 says the board decided to "increase the cash rate target by 25 basis points to 4.85 per cent". The decision was by majority: six members voted for the rise and three voted to leave the rate unchanged at 4.60%. The release does not name the dissenters.
The decision was announced at 2:30pm, the usual time for an RBA announcement. It follows rises in February, March, May and September, and holds in June and August.
Decision date
Change
Cash rate target
3 February 2026
+0.25
3.85%
17 March 2026
+0.25
4.10%
5 May 2026
+0.25
4.35%
16 June 2026
No change
4.35%
11 August 2026
No change
4.35%
29 September 2026
+0.25
4.60%
3 November 2026
+0.25
4.85%
Source for the first six rows: the RBA's cash rate table. Source for 3 November: the RBA's media release 2026-30. Together the five rises this year add 1.25 percentage points.
Why the RBA raised the cash rate
The board's reasons, in its own words, centre on inflation. The statement says "Inflation remains elevated and recent data indicate that it is broadly based". It says the inflation outlook was "revised materially higher", partly because of "higher fuel and other commodity prices affected by the conflict in the Middle East", and that domestic capacity pressures are judged "a little tighter than earlier thought".
On timing, the RBA says inflation is "not expected to reach the top of the 2–3 per cent target range until late 2027, around three quarters later than previously forecast". It also warns of "upside risks to inflation expectations".
The other side of the picture: the same statement says "The economy is slowing, housing prices have fallen significantly and the unemployment rate has risen." The three members who voted to hold were weighing that slowing against the inflation risk.
What it means for mortgage holders and home buyers
Most owner-occupier and investor loans are variable, so the rise flows through once the lender applies it. Lenders set their own timing and amount, so check your lender's notice for the date and the new rate. According to ABC's live coverage, Macquarie was the first to act, lifting its variable home loan reference rate by 0.25% a year from 19 November. The other lenders' announcements were not confirmed at the time of writing.
Here is an illustrative example. It is not a quote, and real rates differ by lender and loan.
Illustrative loan
Rate before
Rate after
Repayment before
Repayment after
Extra a month
$400,000
6.20%
6.45%
$2,626
$2,688
$62
$600,000
6.20%
6.45%
$3,939
$4,033
$93
$800,000
6.20%
6.45%
$5,253
$5,377
$124
Assumptions: principal-and-interest loans with 25 years remaining and monthly repayments. Across all five rises this year, 1.25 percentage points on the same $600,000 loan comes to roughly $455 a month on these assumptions. That is in line with the $456 a month Canstar's Sally Tindall quoted in ABC's coverage.
For buyers, a higher cash rate usually lowers borrowing capacity, because lenders test your loan at a buffer above the actual rate. The RBA also says housing prices have fallen significantly, so some buyers now face lower prices but tighter borrowing limits. Get a fresh pre-approval before bidding rather than relying on an earlier one.
What it means for property investors
Investors feel the rise twice: higher interest costs, and a lower borrowing limit for the next purchase. Interest on an investment loan is generally tax deductible, but the deduction does not remove the cash-flow hit, because you only get part of each dollar back at tax time. Your accountant can explain how that applies to you.
An investor with a $720,000 interest-bearing loan would, on the illustrative assumptions above, pay about $112 a month more, or about $1,340 a year, for this rise alone. If the property is rented, the question is whether rent can grow enough to cover that. Review the loan structure, the offset account and the rate at least once a year, and ask your broker to price a switch if you have not looked recently.
What it means for Airbnb and short-term rental owners
A short-term rental can respond to higher costs in a way a fixed lease cannot, because you can change prices every night. That is a real advantage, but it only helps if the nightly rate and the occupancy are managed on purpose. It is not automatic.
Illustrative example: an owner with a $720,000 loan sees repayments rise by about $112 a month, or $1,340 a year. If the home averages $320 a night, that is roughly 4 extra booked nights a year, or a rate rise of a little under $4 on each of 365 nights, to cover this one rise. The five rises this year add up to roughly $560 a month on the same loan on these assumptions, which is about $6,700 a year. These figures are illustrative only.
Next purchaseBanks may count only part of Airbnb income and will test the loan at a higher rate. Plan the borrowing before you search. See the Airbnb buyers agent page.
Long-term rentals are still a sound investment, and they face the same loan costs. The point is that an owner who can see the numbers and adjust quickly is better placed when rates move.
What to do next: a practical checklist
1Read your lender's notice: note the date the new rate starts and the new minimum repayment.
2Stress-test: work out whether your budget or rental cash flow still holds if the rate rises another 0.50%.
3Ask about your rate: contact your lender or a broker and ask whether a lower rate is available on your loan.
4Keep a buffer: hold enough in an offset or savings account to cover several months of repayments.
5Update your Airbnb pricing: review rates, minimum stays and costs for the summer season.
6Do not rush a purchase: if you are buying, get pre-approval at today's rate and bid within it.
What to watch next
The RBA board's next meeting is on 7 and 8 December 2026, according to the RBA's published schedule, with the decision announced at 2:30pm on the second day, Tuesday 8 December. The RBA's statement says monetary policy is "well placed to respond to developments" and that the board "will be attentive to the data and the evolving assessment of the outlook and risks". ABC reported that Governor Michele Bullock said "I don't know what the next move will be".
Watch inflation data, the unemployment rate, fuel prices and your lender's pricing. A further rise, a hold and a cut are all possible outcomes over time, and nobody can promise which. Build a plan that works across more than one of them.
Where WTP can help
Wealth Through Property is an Airbnb buyers agent, Airbnb manager and revenue-optimisation specialist. If a higher rate has you rethinking a purchase or an underperforming listing, these pages explain how we help.
Airbnb Buyers Agent
Find and buy a short-term rental that makes sense at today's rates.
This article is general information only and is not financial, tax, legal or lending advice. Get advice from a licensed professional about your own situation. All repayment and income examples are illustrative.
RBA Rate Rise FAQs
What did the RBA do on 3 November 2026?
The RBA raised the cash rate target by 25 basis points, from 4.60% to 4.85%. Six board members voted for the rise and three voted to hold. It is the fifth increase in 2026, after rises in February, March, May and September.
Why did the RBA raise interest rates?
The RBA says inflation is elevated and broadly based, and that its outlook was revised materially higher, partly due to higher fuel and commodity prices. It does not expect inflation to reach the top of the 2 to 3 per cent range until late 2027.
How much will my repayments go up?
It depends on your loan and lender. On an illustrative $600,000 loan with 25 years left, moving from 6.20% to 6.45% adds about $93 a month. Your lender will confirm your new repayment and the date it starts.
When will banks pass on the rise?
Each lender decides its own timing and amount. ABC reported Macquarie would lift its variable home loan reference rate by 0.25% from 19 November. Check your lender's notice, as other lenders had not been confirmed at the time of writing.
When is the next RBA meeting?
The RBA's schedule lists a board meeting on 7 and 8 December 2026. The decision is normally announced at 2:30pm on the second day, which is Tuesday 8 December. Confirm the date on the RBA website closer to the time.
Will interest rates go up again?
Nobody can say. The RBA says policy is well placed to respond to developments, and Governor Michele Bullock said she did not know the next move. Further rises, a hold or later cuts are all possible, so plan for more than one outcome.
Are house prices still falling?
The RBA statement says "housing prices have fallen significantly". For the latest figures by month and city, read the publisher's own release, such as the Cotality Home Value Index, which WTP covers each month. Local results vary by suburb and property type.
Does a rate rise affect how much I can borrow?
Usually, yes. Lenders test your ability to repay at a buffer above the actual rate, so a higher cash rate tends to reduce borrowing capacity. Ask a broker or lender for a fresh assessment before you make an offer or bid at auction.
Show 2 more questionsShow fewer questionsHow does a rate rise affect an Airbnb owner?
It raises the cost of the loan, so the nightly rate and occupancy matter more. An Airbnb can be repriced every night, which helps if pricing is actively managed. Review rates, minimum stays and costs. Examples here are illustrative, not guaranteed results.
Should I fix my mortgage after this rise?
That depends on your circumstances, the fixed rates on offer and how you feel about risk. Fixing gives certainty but can cost more than a variable rate if rates fall. Speak with a licensed broker or financial adviser before deciding.
SL
About the author
Scott Levoune
Founder of Wealth Through Property. Scott built a portfolio of 10 investment properties in 3 years, then built the pricing system that turned his own Airbnb into one of the top earners on the NSW South Coast. He and the team now buy, set up and manage short-stay homes across Australia.
