All Collections
Managing your Unloan
Cash Rate & Interest Rate Changes
Understanding interest rate changes and how it affects your repayments
Understanding interest rate changes and how it affects your repayments

Learn how interest rate changes work and how it will affect your home loan repayments.

Updated over a week ago

Interest rates change because of a number of factors that include:

  • Reserve Bank of Australia’s cash rate changes

  • A lender’s cost in funding changes

  • Loan purpose (owner-occupied or investment)

  • Interest rate type (we currently offer variable rates only)

  • Loan repayment type (we currently offer a principal and interest loan only)

  • Principal amount

Below is an example of how an interest rate change has affected Jean’s repayment schedule.

Jean’s current repayment schedule is illustrated below. Her home loan repayments (depicted as squares) are due on the 20th of each month.

Jean has set up AutoPay to ensure that her repayments (depicted as triangles) will be made on time each month. If she opts to set up the AutoPay debit date before the monthly repayment due date, these payments are held securely in her redraw balance until the repayment due date occurs.

An interest rate change announcement was made on July 17th (depicted as a circle). As a result, AutoPay payments within the next repayment period following the interest rate change announcement will begin to adjust. These adjustments will be held in Jean’s redraw until the next minimum repayment date (depicted as green coloured triangles).

If you have any further questions regarding how this works, we’re here to help you. Simply, click the icon on the right-hand corner of your screen to speak with Fin or an Unloan team member.

Related articles


The article does not have regard for the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this, consider the appropriateness to your circumstances.

Did this answer your question?