Is Your Current Home Loan Still Working for You in 2026?
Managing Higher Mortgage Repayments in a Rising Rate Environment
The Reserve Bank of Australia (RBA) hasn’t ruled out the possibility of a further cash rate hike, meaning mortgage holders may need to shoulder higher repayments for longer. RBA governor Michele Bullock said inflation is still too high and further rate increases may be necessary.
According to Mortgage Professional Australia (MPA), the three rate rises so far this year bringing the cash rate to 4.35% have added around $272 a month to repayments on a $600,000 mortgage over 25 years.
If you are feeling the pinch of higher repayments, it may be worth reviewing your home loan before another potential rate rise materialises. Refinancing isn’t just about securing a lower interest rate; it can also help you move to a loan structure that better suits your financial circumstances.
For example, you could:
- Switch to a loan with an extended term to help lower monthly repayments
- Consolidate other debts into your home loan at a potentially more favourable rate
- Restructure your loan to include features such as an offset account or redraw facility
If you’re considering refinancing your home loan, our team at Direct Credit Home Loans can help you find the right finance solution for your circumstances. Contact us on (07) 3726 1124 or email [email protected] to discuss options.
Our experienced staff will assess your application on its merits, not according to rigid criteria. So if you’re credit-worthy, we’ll back you.
We love helping Australians buy property.
Call us on (07) 3726 1124 or email [email protected] to discuss your scenario directly with our credit team.