Rate Hike Hits Homeowners Hard

Australians who have recently secured mortgages are facing higher repayments after the Reserve Bank of Australia (RBA) raised interest rates to 4.6%.

Natasha Luscri-Miller and her partner, who bought a unit with the government's 5% deposit scheme, will see their mortgage repayments rise by $114 per month, taking the total hit to $454 since February.

RBA governor Michele Bullock acknowledged that the rate hike would be tough for households but said it was necessary to combat inflation.

Financial Counselling Australia warned that the decision could deepen financial stress for struggling households and urged banks to offer genuine hardship support.