An extra $120 in monthly repayments is the cost of the latest interest rate rise for the average Australian mortgage. It is the country's fifth increase of 2026.
Here's what to know
Households dealing with a cost-of-living crisis face a cumulative increase of $600 a month in average mortgage repayments in 2026.
At 4.85%, the Reserve Bank of Australia's cash rate is back to a level last reached in November 2008, during the global financial crisis, 7NEWS Australia reported. The latest decision lifted the benchmark by a quarter of a percentage point from 4.6%.
@7newsaustralia Mortgage holders are set to be hit with the highest interest rate levels since the global financial crisis almost 18 years ago. The Reserve Bank has announced a hike of 25 basis points from 4.6 per cent to 4.85 per cent, the highest level since November 2008. It's the fifth rate rise in 2026 as the RBA tried to bring inflation down from above 4 per cent and into the target range of 2-3 per cent. Watch 7NEWS at 6pm for full coverage of today's announcement and what it means for your household. #interestrates #reservebank #auspol #finance #costofliving ♬ original sound - 7NEWS Australia
Inflation remains above 4%, outside the 2% to 3% range the central bank is trying to reach.
"Mortgage holders are set to be hit with the highest interest rate levels since the global financial crisis almost 18 years ago," 7NEWS Australia said in its post's caption.
More background
Along with rising mortgage payments, households are contending with soaring gasoline prices.
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Heightened private sector demand is one factor the government would cite when explaining inflation. The report also identified fuel costs and the war involving Iran as international pressures the government would point to.
The opposition, however, would blame government spending.
Where can I learn more?
Rising mortgage repayments are making housing harder to afford in Australia and abroad.
• An Australian family says moving to Italy will free them from mortgage payments.
• Australian homeowners face insurance renewal "bombshells," with most notices not explaining premium hikes.
• Some 150,000 U.S. borrowers could face payments jumping by $1,080 as adjustable rates double.
• A first-time homebuyer approved for $440,000 discovered payments would consume half their pay.
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