The RBA monetary policy board hiked the cash rate by 25 basis points to 3.85% on Tuesday, and CommBank has since vowed to pass the increase onto mortgage borrowers.
The move is aligned with CommBank’s recent pattern, with the bank previously implementing cash rate changes around 10 days after they were announced.
CommBank's lowest variable rate expected to rise to 5.59%
A 25 basis point hike would assumably see the lowest variable rate in CommBank’s stable – that on its Digi Home Loan product – rise from its current 5.34% p.a. (5.47% p.a. comparison rate*) to 5.59% p.a.
For a borrower with a $650,000 mortgage, that change could result in around an additional $102 per month on repayments (depending on their rate, term, and features).
What could a rate hike mean for your wallet? Mortgage Repayment Calculator
“We know that interest rate changes can create additional pressure for our home loan customers, which is why we’re focused on providing support and helping them stay in control of their finances,” CommBank retail banking services executive Angus Sullivan said.
Both owner-occupiers and investors holding variable rate mortgages are set to be affected by today’s announcement.
It comes after the big four bank lifted its fixed rates by as much as 70 basis points in mid-January.
Its lowest fixed rate is now 5.79% p.a. (7.40% p.a. comparison rate*) for owner-occupiers fixing for two years.
CommBank has led the way, becoming the first major bank to announce its intent to pass on the RBA’s February move.
Historically, CommBank subsidiary Bankwest has moved variable rates in line with its parent company, while digital brand Unloan often moves on a different timetable.
What do CommBank home loan holders need to do?
It’s important to note that borrowers should check what happens to their minimum repayment after a rate hike.
Many customers will see repayments recalculated automatically, but anyone who makes manual payments (or has a set transfer amount) should ensure they're meeting the new minimum to avoid falling behind.
Those who didn’t adjust their automatic repayments in the wake of 2025’s rate cutting cycle might find their repayments stay the same after 13 February.
Though, if you're already paying extra each week or month and keep your repayments the same following Tuesday's hike, you'll likely find less of your repayments goes towards paying the principal balance, thereby increasing the time taken to repay your mortgage.
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Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option Tags Features Link Compare Promoted Product Disclosure
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Image created on Canva using assets from Commonwealth Bank of Australia
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