Mortgage holders have been delivered a huge hit with interest rates increased by 0.25 per cent.
The Reserve Bank of Australia (RBA) has shifted the official cash rate to 4.35 per cent.
Mark Stevenson from Evolve Lending said it’s not the news mortgage holders were hoping for.
“This is another devastating blow to homeowners but no surprise with inflation running riot to see the RBA deliver successive interest rate hikes to move the cash rate to 4.35 per cent,” he said.
“Headline inflation rising to 4.6 per cent for the year to March, its highest level since 2023, put the RBA into a corner where it had little choice but to lift the cash rate again.”
Stevenson warned the rate increases may not be over yet.
“Unfortunately, rates look like they will keep rising, and the RBA could in the coming months take the cash rate above 4.5 per cent – some where it hasn’t been since 2011,” he said.
“The team at Evolve Lending and Finance is ready to support any customers who will have challenges repaying mortgages due to higher interest rates and the cost-of-living pressures.”
Richard Whitten, home loans expert at Finder, said the move would feel like a “backward step” for those with a mortgage.
“While this was the peak two years ago, the cost of living has continued to climb since then, meaning the same rate now carries a much heavier weight,” he said.
“Now is the time to explore your options. If you haven’t refinanced or asked your lender for a better deal, you’re almost certainly paying too much.”
The decision to hike the cash rate will cost the average borrower an extra $2,661 a year compared to what they were paying at the start of 2026.
Troy Dodds is Parra News' Managing Editor and Breaking News Reporter. He has more than 20 years experience as a journalist, working with some of Australia’s leading media organisations. In 2023, he was named Editor of the Year at the Mumbrella Publish Awards.