Rising rates could add up to $364 monthly for mortgage borrowers

The Reserve Bank is poised to implement a fourth interest-rate hike in 2026 during its two-day board meeting, with a likely 25-basis-point rise in the cash rate. For a standard $600,000 mortgage, this would translate into an additional $91 in monthly repayments, according to Sally Tindall of Canstar. If four such hikes occur, borrowers could be paying $364 more each month compared with payments at the start of the year.

A cash rate of 4.6% would raise the average variable mortgage rate to roughly 6.49%, assuming lenders fully transmit the change. Since October 2011, home-loan debt has more than doubled, rising from $1.05 trillion to $2.51 trillion, amplifying the impact of higher rates. RBA Governor Michele Bullock’s comments on targeting unemployment levels have sparked criticism from unions and social service groups, who warn of rising joblessness.