How Much More Will Mortgage Repayments Increase in Australia?

The Reserve Bank has now delivered three rate hikes in 2026, and for many Australians, the impact is starting to show.

With interest rates, fuel costs and broader inflationary pressures continuing to shift, households are asking a very real question:

How much more am I actually paying on my mortgage?

As discussed in our latest RBA update with Ben Kingsley and economist Evan Lucas, the Board’s more decisive stance suggests this may not be the last move in the current cycle — particularly with ongoing pressure from energy prices and broader cost increases across the economy.

Key Takeaways

• Most major lenders have now passed on the latest 0.25% rate increase
• Even three rate hikes can add $300–$600/month to repayments
• If rates rise further, this could increase to $500–$1,000+/month depending on loan size
• Reviewing your loan and cash flow strategy can make a meaningful difference

See how your lender responded and what it could mean for your repayments below.

Which Banks Have Passed On the Latest Rate Rise? (Confirmed)

Lender	Rate Increase	Effective Date
AMP Bank	0.25%	11-May
ANZ	0.25%	15-May
Australian Mutual Bank	0.25%	1-Jun
Bank Australia	0.25%	20-May
Bank of Melbourne	0.25%	15-May
Bank of Sydney	0.25%	15-May
BankSA	0.25%	15-May
Bankwest	0.25%	15-May
Bendigo Bank	0.25%	15-May
Commonwealth Bank	0.25%	15-May
Homeloans.com.au	0.25%	15-May
Homestar Finance	0.25%	11-May
ING	0.25%	15-May
Macquarie Bank	0.25%	22-May
MyState	0.25%	14-May
NAB	0.25%	15-May
Qudos Bank	0.25%	20-May
St George	0.25%	15-May
Teachers Mutual Bank	0.25%	1-Jun
UniBank	0.25%	1-Jun
Virgin	0.25%	8-May
Westpac	0.25%	15-May

How Much More Are You Paying And What If Rates Rise Again?

We’ve had three rate hikes this year, and there are potentially two more to come if uncertainty persists. Find out why here >

We know many households are already feeling the pressure. But this is not the time to hide your head in the sand and hope it improves. It’s the time to understand your position and plan ahead.

So the real question is:

What does this actually mean for your repayments?

Below is a simplified example based on interest-only loans. We’ve also modelled an additional two rate increases to show how repayments could change if rates continue to rise.

As you’ll see, the impact becomes more significant — with some households facing increases approaching or exceeding $1,000 per month depending on their loan size.

While these examples provide a useful guide, every situation is different.

Repayment Impact Table

Loan Size	Before (Jan 2026 at 5.75%)	After 3 Hikes (May 2026 at 6.50%)	Difference	What if there are two more hikes? (After 5 Hikes 7.00%)	Difference
$500,000	$2,396	$2,708	+$313	$2,917	+$521
$600,000	$2,875	$3,250	+$375	$3,500	+$625
$700,000	$3,354	$3,792	+$438	$4,083	+$729
$800,000	$3,833	$4,333	+$500	$4,667	+$834
$900,000	$4,313	$4,875	+$563	$5,250	+$938
$1,000,000	$4,792	$5,417	+$625	$5,833	+$1,042

What You Can Do Next

Reduce your Mortgage Repayments

If your repayments have increased, the next step is understanding what you can do about it.

You can start by exploring practical ways to reduce your mortgage repayments, including strategies that can be implemented without refinancing.

Ben recently shared six practical tips on how you can potentially improve your cash flow. Learn more here >

Forecast or Model Your Future

If you want to see how future rate changes could impact your own loan and cash flow, tools like Moorr’s MoneyStretch can help you explore “what if” scenarios and better understand your financial position over time.

In times of uncertainty, this tool becomes especially valuable. You can model scenarios such as:

• What if your repayments increase further?
• What if you sell a property?
• What if your income changes?
• What if you invest in another property?

Other tools like Moorr’s Offset Tracker can also help you track your cash flow and understand how your money is working against your loan.

Get Professional Guidance

Rate hikes are part of the broader economic cycle but the impact on your mortgage doesn’t have to be left unmanaged.

Even small adjustments, made at the right time, can add up to a meaningful difference over time.

At Empower Wealth, we’ve helped our clients save close to $2 million in interest this financial year alone. As one of Australia’s leading mortgage brokerages, we can help you review your current loan, compare your options, and map out a strategy that suits your situation.

Learn more about our approach here >

Or book a free, no-obligation chat via the form below.

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