Teachers Mutual Bank announces changes to variable interest rates

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

The increase to variable 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.

Greg Johnson, Teachers Mutual Bank Limited’s Chief Customer Officer, said: “We will be increasing both our variable home loan rates and our variable savings rates effective 1 June 2026.

“For our home loan members, we understand today’s announcement may add further pressure to households already stretched and feeling the effects of global volatility. To support these members, we are delaying these changes until 1 June. We encourage any member needing additional support to contact our Member Assist team which can help with personalised solutions. Acting early can make a big difference and give borrowers access to more options.”

Further information for members with home loans

When will my variable interest rate change?

Following the Reserve Bank of Australia’s decision on 5 May 2026 to increase the official cash rate by 0.25%, variable home loan rates will increase by 0.25% on 1 June 2026. 

When will my new home loan repayments start?

Repayments will change on or after 1st of July 2026, giving you time to prepare. Members will begin to receive communication about any changes from the 1st of June 2026* outlining specific changes to their loan accounts.

*Please allow 7 business days if your preferred communication method is via post

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.

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 5.84%, an increase of 0.25% would result in an
approximate increase of $61 per month. 
 Scenario  Interest Rate  Monthly Repayments
 Current rate  5.84%  $2,538
 With a 0.25%  6.09%  $2,599 (+61)

What if I want to increase my home loan repayments?

You can increase your repayments at any time by calling 13 12 21. Because your minimum repayments form part of your loan contract, they can’t be adjusted through Internet Banking.

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 by calling 1800 862 502.

We understand that unexpected changes can happen, and we’re committed to working with members who may need support.

We can discuss the assistance options available to you based on your individual circumstances.

Reaching out early gives us the best opportunity to help.

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