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Whether you’re affected by potential interest rate changes largely hinges on your status as a homeowner and the timing of your home purchase.
According to analysis from Finder, Australians holding an average mortgage of $736,259 could see their annual payments increase by $2,657 if there’s a 25 basis points rise in the cash rate today.
This hike would be in addition to the payments they’ve been making before the Reserve Bank of Australia began its recent rate increases this year.
That’s compared to what they were paying before the RBA started hiking the cash rate this year.
Cash rate is the interest rate that banks pay other banks and lenders, and it influences all other interest rates.
Canstar analysis estimated that a 0.25 percentage point hike today would mean borrowers could pay an extra $91 a month on a $600,000 mortgage.
If the RBA decides to increase the cash rate, it will be the third hike this year, totalling a $272 rise in monthly repayments on a $600,000 mortgage compared to 2025.
Current homeowners would be the most impacted in the short term by an anticipated hike, Canstar’s Sally Tindall says.
Tindall said another hike could be “the straw that breaks the camel’s back” for everyday Aussies.
“For new borrowers, who potentially might not have even been expecting any cash rate rises after last year’s drops, they could have a wake-up call,” she said.
Source: SBS
Australians with a larger mortgage debt will pay more over the lifetime of their mortgage.
A homeowner with $800,000 in debt would pay an additional $363 each month, and those with $1 million in debt would owe $453 more in monthly repayments.
— Cameron Carr, Alexandra KosterÂ