So far, your refunds under these circumstances would have increased by a lesser $424, to $3,467, thanks to the RBA (from an average bank rate of 3.45% to 4.7% now).

How much would each future rate increase likely cost you from here? On this average loan of $611,158, each 25 basis point increase would add about $90 per month. That’s on top of the average $3,467 you could currently pay on a major bank rate.

If your mortgage is lower, say $400,000, each 25 basis point increase in the RBA costs you about $60 per month. If it is higher $800,000, the hip pouch injury is around $120 per month.

In any case, it is time to stem some reimbursement problems.

We also have stronger forecasts as to where this cycle of rising interest rates might end. Fortunately, it could be short and sharp.

The last RBA Cash Rate Survey of 26 pundits and economists say official rates could peak – after a possible pause next month – at 2.5%. Treasurer Jim Chalmers said inflation is expected to hit 7.75% in the December quarter and then decline next year.


Expected rate hikes would total 2.4 percentage points, up from the historic COVID emergency low of 0.1%. They could reach 1.75% by Tuesday.

However, you can act now and wipe out almost as much of your mortgage payments as all the rate increases so far, simply by refinancing with a cheaper lender. It’s worth it, so think about it.

  • The advice given in this article is of a general nature and is not intended to influence readers’ decisions regarding investments or financial products. They should always seek professional advice that takes their personal circumstances into account before making financial decisions.