Aussies Braced for Double Mortgage Hit as Interest Rates Soar

Experts warn that Australians are likely to face increased mortgage bills not once but twice in the coming months. The Reserve Bank of Australia (RBA) is expected to hike interest rates for a fourth time, from 4.35 per cent to 4.60 per cent, when it holds its next board meeting on September 28-29.

Economists forecast a 76 per cent chance of the September increase, which would undo some of the three rate cuts administered by the RBA in 2025. According to Canstar, borrowers with a $600,000 mortgage could pay an extra $92 a month if the cash rate rises to 4.60 per cent on September 29.

A fifth hike is also anticipated, potentially lifting the rate to 4.85 per cent and increasing repayments further. Westpac Chief Economist Luci Ellis said that money markets have shifted their expectations for interest rates amid stubborn inflation fueled by consumer demand.