Posted: February 2026 By InDepth Mortgage – Sunshine Coast Mortgage Brokers
The Reserve Bank of Australia (RBA) has just increased the official cash rate by 25 basis points to 3.85%, effective from early February 2026. This marks the first hike in over two years, reversing one of the cuts made in 2025, and comes amid renewed concerns about persistent inflation.
For many Sunshine Coast homeowners, this change hits home — literally. If you’re on a variable rate loan, your monthly repayments could rise noticeably. But here’s the empowering part: this shift also creates real opportunities to review and refinance your home loan, potentially locking in better terms before any further movements.
What the Rate Hike Means for Your Mortgage Repayments
The cash rate increase flows through to variable home loan rates, with most lenders passing on the full 0.25%. Here’s a quick look at the typical impact:
- On a $600,000 variable loan (common for growing Sunshine Coast families): Expect an extra ~$80–$120 per month.
- For a $800,000 loan (seen more in established areas or recent Aura/Baringa purchases): The increase could add ~$100–$160+ monthly.
- Smaller loans around $400,000 (e.g., first-home buyers in Nirimba, or those more established): Around $50–$80 extra per month.
These figures are approximate and depend on your current rate and lender, but they highlight why many locals are feeling the pinch right now. If your loan has been sitting on a higher rate for a while, the cumulative effect over a year could run into thousands.
Equity Growth on the Sunshine Coast – A Hidden Advantage
The good news? The Sunshine Coast property market remains strong, especially in high-growth corridors like Nirimba, Aura, Baringa, and Caloundra West. Recent data shows:
- Median house prices in the broader Sunshine Coast region hovering around $1.08 million (up ~7% annually).
- In the Aura/Nirimba area: Medians often in the $800,000–$950,000 range, with strong year-on-year growth (8–10%+ in some pockets) driven by new estates, schools, and amenities.
If you’ve owned for a few years — or even bought recently in one of these master-planned communities — you’ve likely built significant equity. That equity opens doors to:
- Refinancing for a lower rate (saving on repayments).
- Cash-out options for renovations, debt consolidation, or investments.
- Switching to lenders with more flexible terms, especially if you’re self-employed.
Many Sunshine Coast borrowers are surprised at how much room they have to manoeuvre once we run the numbers.
Special Considerations for Self-Employed Borrowers on the Coast
If you’re self-employed (a common scenario among tradies, contractors, and small business owners here on the Sunshine Coast), rate changes can feel even more uncertain. Banks often scrutinise income proof more closely, but that’s where specialist brokers shine.
Through our access to a wide panel of lenders, we help self-employed clients access low-doc or alternative verification options — even with variable income from BAS statements, tax returns, or accountant letters. Refinancing now could secure stability before any potential further hikes, while leveraging your growing property equity in areas like Nirimba or Aura.
Should You Refinance Right Now?
Not every homeowner needs to act immediately, but it’s smart to review if:
- Your current rate is above the competitive market (many are still 0.3–0.8%+ higher than top offers).
- You’re paying lender’s mortgage insurance (LMI) unnecessarily or have equity to remove it.
- You’re self-employed and want more flexible structures.
- You simply want clarity on your options post-hike.
The process is straightforward with InDepth Mortgage: one credit check, single submission to multiple lenders, and transparent guidance tailored to Sunshine Coast realities.
Rates are data-dependent — the RBA has signalled a cautious, watchful approach, with markets pricing in a chance of another move later in 2026. Acting sooner lets you lock in current competitive offers and build momentum.
Take the Next Step – No Cost, No Obligation, Only Option Awareness
Knowledge is power, especially with rates on the move. At InDepth Mortgage, we’re here to empower Sunshine Coast homeowners (from Nirimba and Aura to Caloundra and beyond) with clear, personalised insights — no bank pressure, just real options.
Book Your Free Mortgage Strategy Session today. In a quick video call, we’ll review your situation, run scenarios (including refinance savings and self-employed pathways), and map out a simple path forward.
[Book Your Free Strategy Session – InDepth Mortgage]
Questions? Reach out — we’re local, accessible, and focused on helping you thrive, whatever your mortgage looks like.
Stay informed, stay empowered.
InDepth Mortgage Team
Sunshine Coast Specialists
