Teachers Mutual Bank Limited announces increase to variable interest rates across home loan and savings products

29 September 2026

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Following the decision by the Reserve Bank of Australia to increase the official cash rate by 0.25% p.a., Teachers Mutual Bank Limited will increase interest rates by 0.25% p.a. across its variable home loan products, effective 8 October 2026 and variable savings products, effective Thursday, 1 October 2026.

The increase to variable home loan and variable savings rates announced today will be applied across Teachers Mutual Bank Limited’s five retail brands - Teachers Mutual Bank, Australian Mutual Bank, Firefighters Mutual Bank, Health Professionals Bank and UniBank.

The bank will also increase variable business loans by 0.25% p.a. under the Australian Mutual Bank retail brand.

Greg Johnson, Teachers Mutual Bank Limited’s Chief Customer Officer, said: “The Reserve Bank has again lifted interest rates which has an impact on our members. With already high costs of living, we are aware that for members with a home loan even a relatively small change to their home loan repayments can matter.

“For any member concerned about your repayments, I encourage you to talk to us early. Our Member Assist team is here to understand your individual circumstances and work with you to explore the range of personalised support options available.”

Greg also added: "A large number of our members also have significant savings with the bank, and this rate change provides higher returns on the money they have worked hard to put aside."

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Q&As

1. When will my variable interest rate change?

Following the Reserve Bank of Australia’s decision on 29 September 2026 to increase the official cash rate by 0.25%, variable home loan rates will increase by 0.25% on 8 October 2026.

Variable savings rates will increase on 1 October 2026.

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2. When will my new home loan repayments start?
Repayments will change on or after 1 November 2026, giving you time to prepare. Members will begin to receive communication about any changes from the 8 October 2026* outlining specific changes to their loan accounts.

*Please allow 7 business days if your preferred communication method is via post
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3. Will my home loan repayments change automatically?
When an interest rate increases, your minimum repayment is adjusted accordingly. Your repayments will only change if your new minimum required repayment amount is more than what you are currently paying.
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4. How much will my home loan repayments increase?
Changes to your loan repayments are dependent on your loan balance, remaining term, interest rate and repayment frequency. Your new repayment amount will be included in your interest rate change letter.

As an example, for a $400,000 home loan over 25 years with an interest rate of 6.00%, an increase of 0.25% would result in an approximate increase of $62 per month.

Scenario Interest rate Monthly repayments
Current rate 6.00% p.a. $2,577
With a 0.25% increase 6.25% p.a. $2,639
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5. What if I want to increase my home loan repayments?
You can increase your repayments at any time by calling us. Because your minimum repayments form part of your loan contract, they can’t be adjusted through Internet Banking.
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6. Who can I speak to if I need help with my home loan?

If you’re worried about making your repayments, please get in touch with us as early as possible.

We understand that unexpected changes can happen, and we’re committed to working with members who may need support. We can discuss the personalised assistance options available to you based on your individual circumstances.

Reaching out early gives us the best opportunity to help.

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