Updated 1 October 2026: this article was first published in May 2026 and has been updated to cover every RBA rate rise in 2026, including the September decision. Interest rates and lender policies change often, so contact us for the latest information. If your fixed rate is ending soon, see our guide to your options when a fixed rate ends.
2026 has been a tough year for anyone with a mortgage. After three cuts in 2025 brought the cash rate down to 3.60%, the Reserve Bank of Australia has raised it four times this year, taking it to 4.60%. That is the highest the cash rate has been in about 15 years, and with inflation still putting pressure on household budgets, many homeowners are feeling it every time a repayment comes out.
The 2026 Rate Rises at a Glance
- February 2026: up 0.25 to 3.85%
- March 2026: up 0.25 to 4.10%
- May 2026: up 0.25 to 4.35%
- June and August 2026: on hold at 4.35%
- 29 September 2026: up 0.25 to 4.60%
For more on the latest decision and what the RBA said about inflation and property prices, read our breakdown of the September 2026 rate rise.
What the 2026 Rises Cost in Dollar Terms
Across the four rises this year, the cash rate has climbed a full 1.00 percentage point. To show what that can mean, here is a hypothetical example:
- A $600,000 variable home loan with 30 years remaining, paying principal and interest.
- At a rate of about 5.85% before the 2026 rises, monthly repayments are roughly $3,540.
- If the lender passes on all four rises in full, the rate moves to about 6.85% and repayments rise to roughly $3,932 a month.
- That is about $392 more each month, or around $4,700 more a year.
Your own figures will depend on your loan balance, rate, remaining term and how your lender has passed on each change. If you’re looking to buy, higher rates can also reduce how much a lender will let you borrow, because they assess your application with a buffer on top of the actual rate.
There’s no sugar-coating it: this is a tough environment. But there are practical steps you can take right now that can make a real difference.
6 Ways to Save Despite the Rate Rises
1. Review Your Home Loan
If you haven’t had your loan reviewed recently, now is the time. Lenders are constantly adjusting their rates and offers, and the loan that was competitive 12 months ago may not be anymore. After four rises in one year, even a small reduction in your rate is worth more than it was. A conversation with a mortgage broker costs you nothing and could save you significantly, either by finding a lower rate or by restructuring your loan to better suit your current situation.
If you’re weighing up whether to lock in some certainty, our guide to fixed vs variable home loans in 2026 walks through the decision.
2. Consolidate Your Debts
If you’re carrying multiple debts (a car loan, personal loan or credit card balances), it may be worth exploring whether you can consolidate them into a single, lower-interest facility. This can simplify your repayments and reduce the interest you pay each month. Keep in mind that rolling short-term debt into a 30-year home loan can mean paying more interest overall unless you pay it off faster, so it’s not the right move for everyone. Get personalised advice before proceeding.
3. Review Your Health Insurance
Private health insurance premiums go up on 1 April each year, so it’s worth checking what you’re paying and whether you’re still getting value. The government’s privatehealth.gov.au lets you compare policies and see what else is available at your tier of cover.
If you are in a position to pay for a year upfront, try to do it in late March each year to lock in the current price before the increase takes effect.
4. Compare Your Electricity
Energy bills have been steadily increasing for many Australian households, and the federal Energy Bill Relief Fund rebates ended on 31 December 2025, so many households are now paying the full amount on every bill. It’s worth checking your plan against the default market offer for your area and asking your retailer for a better deal. If you’re moving house, our energy page explains how to compare plans when you move.
Rebates for installing solar and home battery systems are also worth a look. My family personally installed a system this year, cutting our expenses from ~$500 a month to ~$50, and it has a payback period of less than two years. We are very high energy users due to having an EV and working from home often, but the figures are worth running for your situation too.
5. Find Cheaper Fuel
The temporary fuel excise cut that applied earlier in 2026 has now ended, so prices at the bowser no longer include that discount. That makes shopping around more important. Apps like PetrolSpy, FuelMap and Motormouth let you see real-time price differences at servos near you, and in NSW the FuelCheck app shows prices across the state. The My 7-Eleven app also lets you lock in a fuel price for up to seven days, which is useful if you know you’ll need to fill up soon. Better yet, see if an EV might be feasible for your situation and cut the petrol cost out entirely. Ingram Financial can assist with your car loan if needed.
6. Audit Your Subscriptions and Budget
It sounds basic, but a lot of people are still paying for subscriptions or services they’ve forgotten about. Take 20 minutes to go through your bank statements and cancel anything you’re not actively using. While you’re there, note that from 1 October 2026 businesses can no longer add surcharges to eftpos, Visa or Mastercard payments, so check that you’re not still being charged one. Every dollar adds up.
The Bigger Picture
Rate rises feel uncomfortable, but they’re also a prompt to make sure your finances are working as hard as possible for you. Nobody knows for certain where rates go from here, which is why it pays to focus on what you can control. If you haven’t had a home loan health check in the last 12 months, that’s the single biggest lever most people can pull right now.
If you’d like to talk through your options, get in touch with the Ingram Financial team. We’ll take a look at your current loan, compare it against what’s available from dozens of lenders, and give you an honest assessment, at no cost to you.
The information in this article is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply. Consider whether it is appropriate for you and speak to us for advice specific to your situation.
Need Some Help?
Not sure where to start? That’s exactly what we’re here for. Drop us a message and we will get back to you within one business day with clear, honest advice tailored to your situation.
