{
  "id": 10462865,
  "title": "No wonder Aussie mortgage holders are hurting",
  "url": "https://urgent.news/2026/09/28/no-wonder-aussie-mortgage-holders-are-hurting",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-28T14:01:46.000Z",
  "source": {
    "name": "MacroBusiness",
    "slug": "macrobusiness",
    "url": "https://www.macrobusiness.com.au/2026/09/no-wonder-aussie-mortgage-holders-are-hurting/"
  },
  "original_language": "en",
  "account": "The Reserve Bank of Australia (RBA) is set to announce its interest rate decision today, with market speculations suggesting a quarter of a percentage point hike in the official cash rate. This comes as mortgage holders already allocate a near-record proportion of their income towards servicing their loans. Financial experts predict two to three additional rate increases from the RBA, potentially raising the OCR to 5.10%, from a pre-pandemic low of 0.1% in 2021. This could cause the average variable mortgage rate for new owner-occupiers to surge to approximately 6.95%, up from a mere 2.35% in 2021.\n\nTo illustrate, an average mortgage of $731,000 at the record-low 2.40% rate would cost $2,850 per month, but at today's rate of 6.20%, it would amount to $4,477 per month, a 57% increase. Each additional 0.25% OCR rise would add around $120 to the monthly repayments. If the RBA proceeds with three hikes, average monthly loan repayments could climb by $362.\n\nThis analysis underscores the financial strain on Australian mortgage holders and how further RBA rate hikes could push numerous households with substantial mortgages beyond their means. First-time homebuyers who acquired properties in late 2025 or early 2026 under the Albanese government’s 5% deposit scheme are the most vulnerable group. These buyers bought near the peak of the market and have witnessed significant property value declines, compounded by three rate hikes this year and the anticipation of three more increases starting today. Many find themselves with negative equity and the grim prospect of being trapped in mortgages they can no longer afford.",
  "summary": "The Reserve Bank of Australia (RBA) will hand down its interest rate decision later today, with financial markets and economists widely tipping a 0.25% increase in the official cash rate (OCR). The likely OCR increase comes at a time when mortgage holders already spend a near-record share of their incomes servicing their loans. Financial markets The post No wonder Aussie mortgage holders are…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}