Banks' advertised three-year fixed home loan rates moved above 7 per cent in September 2026. The Reserve Bank's indicator lending rates table, published on 8 October, shows the average three-year fixed rate quoted by large banks to owner-occupiers rose from 6.74 per cent at the end of August to 7.02 per cent at the end of September (RBA statistical table F5). In that series, it is the first month-end reading above 7 per cent since July 2011.
Quick answer: advertised three-year fixed rates rose 0.28 of a percentage point in September, while the banks' advertised variable rates did not change in the same figures. The September readings were taken before variable rate increases that followed the RBA's 30 September cash rate rise could show up. Advertised rates are not what most borrowers pay, so for a car loan application, the number that matters is your own home loan repayment.
This article explains what the RBA figures show, how far advertised rates sit from rates actually charged, and what a higher fixed rate can mean for a household budget that also includes a car loan. It is general information, not advice about whether to fix your home loan.
What the RBA data shows for 3-year fixed home loan rates
Table F5 tracks advertised, or indicator, rates. The RBA's notes say rates for banks are "the average rates of large lenders", three-year fixed rates are those "where the interest rate cannot be varied for the first three years of the loan", and the data is compiled on the last working day of the month (F5 notes, RBA). The RBA also notes these rates are indicative only and may be revised.
Changes between the end of August and the end of September 2026 (RBA table F5):
- Three-year fixed, owner-occupier: up from 6.74 to 7.02 per cent.
- Three-year fixed, investor: up from 6.82 to 7.11 per cent.
- Standard variable, owner-occupier: unchanged at 8.77 per cent.
- Discounted variable, owner-occupier: unchanged at 6.80 per cent. The RBA describes discounted rates as those offered on standard variable loans "as part of professional packages".
- Standard credit cards: up from 20.99 to 21.24 per cent, the first change in that series since January 2025.
Why variable rates did not move in the September figures
The RBA raised the cash rate target by 0.25 of a percentage point to 4.60 per cent, effective 30 September 2026 (RBA cash rate). That was also the last working day of September, the day the F5 figures were compiled. Variable rate increases that lenders announced after the decision and applied in October are therefore not in these numbers. Our article on the home loan rate rise from 9 October covers that timing for borrowers.
The fixed rate increase, by contrast, is already in the September figures, which means the large banks lifted those advertised rates at some point during the month.
Fixed rates have risen faster than the cash rate
Over the year to the end of September 2026, by our comparison of the RBA tables:
- Cash rate target: up 1.00 percentage point, from 3.60 to 4.60 per cent, after rises in February, March, May and September 2026 (RBA cash rate).
- Advertised three-year fixed rate: up 1.50 points, from 5.52 to 7.02 per cent (RBA table F5).
- Advertised standard variable rate: up 0.75 of a point, from 8.02 to 8.77 per cent, which reflects the February, March and May rises but not September's.
Fixed rates are priced on what lenders expect funding to cost over the fixed term, so they respond to expectations about rates as well as the current cash rate. A fixed rate rising faster than the cash rate is consistent with lenders and markets pricing in the chance of further increases. That is our reading of the data, not an RBA forecast, and expectations can change quickly. Our earlier article on fixed home loan rates moving above variable rates covers the RBA Board's September minutes on this point.
Advertised rates versus what borrowers actually pay
The advertised numbers in F5 sit well above the rates most borrowers are charged. A separate RBA table, F6, records the average rates on loans actually funded each month, based on data lenders report to APRA. For August 2026, the latest month published, new owner-occupier variable loans averaged about 6.2 per cent and new loans fixed for three years or less averaged about 6.3 per cent (RBA statistical table F6).
Against an advertised standard variable rate of 8.77 per cent, that is a gap of more than 2.5 percentage points. The two tables measure different things, and the latest months differ, so treat the comparison as a guide only. The practical point is that a headline rate is a poor stand-in for your own rate, and the rate on your loan statement is the one that matters for your budget. Our explainer on the cash rate versus the rate you actually pay goes into why these numbers differ.
Worked example: what 7.02 per cent does to repayments
As an illustration, here are monthly principal and interest repayments on a $500,000 loan over 30 years at each advertised three-year fixed rate. These are our calculations using the standard repayment formula, before fees, and are not offers from any lender:
- 5.52 per cent (September 2025): about $2,845 a month.
- 6.74 per cent (August 2026): about $3,240 a month.
- 7.02 per cent (September 2026): about $3,333 a month.
On those assumptions, September's move adds about $94 a month, and the rise over the year adds about $488 a month. Your own figure depends on your balance, remaining term, rate and lender.
What it means if you are planning a car loan
When you apply for a car loan, the lender assesses whether you can afford the new repayment on top of your existing commitments, and your home loan repayment is usually the largest of those. A higher mortgage repayment leaves less room, which can reduce how much a lender is willing to lend. Our guide to how a home loan rate rise affects car loan borrowing power walks through that effect.
Car loan rates are set separately by each lender and depend on the lender, your credit history, the vehicle and the term. When you compare them, Moneysmart notes the lender must give you the comparison rate, a single figure that includes the interest rate and fees (Moneysmart, car loans). You can compare current offers on our car loan rates page, and our guide to car loan fees explains what the comparison rate includes.
If you carry a credit card balance, the higher standard card rate means that balance costs more each month, so it is worth checking where you stand before you apply.
A short checklist before you apply
- Find your current home loan rate and repayment on your latest statement, not an advertised rate.
- If your fixed term ends within the next year, ask your lender what rate the loan would move to and what the new repayment would be.
- If your variable repayment changed in October, use the new amount when you work out your budget.
- Note that the RBA Board meets again on 2 and 3 November. Our RBA November meeting checklist covers what to check before then.
- Car loan pre-approval can show how a lender views your budget before you shop, although it is not a final approval.
Where these figures come from
All figures were checked against RBA sources on 26 October 2026: the indicator lending rates in table F5 and its notes (published 8 October 2026, data to 30 September 2026), housing lending rates in table F6 (published 8 October 2026, data to August 2026) and the cash rate target history. Repayment figures are our own calculations.
This article is general information only and does not consider your objectives, financial situation or needs. Consider whether it suits your circumstances and speak to a licensed professional before making a decision.
