The RBA's May cash rate rise to 4.35% will directly affect variable mortgage holders and those rolling off fixed rates. As mortgage brokers, TAG Finance's immediate focus is helping our clients understand what this means for their repayments and options — whether that's refinancing, fixing part of the loan, or adjusting repayment strategies. The move signals the RBA's continued priority on bringing inflation back toward target while monitoring the broader economy.
At the Governor's press conference, Michelle Bullock said, "We remain focused on returning inflation to target and will adjust policy as needed to achieve that outcome." From TAG Finance's viewpoint, that language suggests further tightening cannot be ruled out, so clients should review their buffer, consider locking in competitive fixed rates if they suit their plans, or speak to us about switching to a package with lower ongoing fees.
For a typical outstanding home loan of $600,000 on principal-and-interest payments over 30 years, a 0.25% increase in the variable home loan interest rate typically raises monthly payments by around $75–$90; a full 1.00% rise can add roughly $300–$360/month.
At TAG Finance, we can run exact calculations for your loan, compare fixed vs variable scenarios, and outline refinance or repayment options tailored to your personal circumstances.