Macquarie Bank and Teachers Mutual Bank will pass the Reserve Bank's latest 0.25% increase in full to variable home loan borrowers in October.
The RBA's fourth rate rise of 2026 took the cash rate target to 4.6%, its highest level since November 2011, and the board said in its September monetary policy decision that it could lift rates further if needed.
Teachers Mutual Bank's increase takes effect first, on 8 October. It applies across all five of its retail brands: Teachers Mutual Bank, Australian Mutual Bank, Firefighters Mutual Bank, Health Professionals Bank, and UniBank. Business borrowers with variable loans at Australian Mutual Bank face the same increase.
Macquarie will lift its variable home loan reference rates on 15 October. The country's fifth-largest household lender holds about 7.4% of the market and accounted for 24% of the $159 billion growth in home lending over the past 12 months, according to Australian Prudential Regulation Authority data cited in its release.
RBA governor Michele Bullock acknowledged the pressure on borrowers when she told reporters after the September decision: "I know this decision is difficult for households with a mortgage and businesses with loans."
Both lenders urged borrowers who are worried about repayments to contact them.
Greg Johnson (pictured left), chief customer officer at Teachers Mutual Bank, said the rise lands on households already dealing with high living costs, noting that "even a relatively small change to their home loan repayments can matter."
Ben Perham (pictured right), head of personal banking at Macquarie Bank, said the bank's message to worried customers was that "we encourage them to get in touch, as financial assistance may be available."
Deposit rates are also rising. Teachers Mutual Bank will lift variable savings rates by 0.25% from 1 October. Macquarie will raise its transaction account rate from 2.75% to 3.00% from 15 October.
The portion of Macquarie savings balances up to $250,000 will earn 5.25%, up from 5.00%. The portion between $250,000 and $2 million will earn 5.05%, and the portion above $2 million will move from 2.75% to 4.60%.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
