Triple Rate Hikes Hit Homebuyers Hard

How Fixed Rates Are Changing Your Mortgage

Homebuyers across Australia have been hit with steep fixed-rate increases as banks respond ahead of the Reserve Bank of Australia (RBA) meetings. The Commonwealth Bank, for instance, raised its three-year fixed mortgage rate by 0.70%, equivalent to a triple rate hike, increasing monthly repayments for thousands of borrowers.

At MyMoneyMedic, we know that changes like this affect not just your budget but also your mental and emotional wellbeing. Understanding the impact and having strategies to cope can help you stay in control of your finances during uncertain times.

Full article reference: Triple Rate Hike Shock

Why Rates Are Rising

Banks are preemptively adjusting fixed rates in anticipation of potential RBA cash rate hikes. These increases mean:

• Higher monthly repayments: A $600,000 mortgage could rise by $90/month per 0.25% rate increase.
• Fewer affordable fixed options: Some lenders are now offering rates above 5.7%, leaving fewer low-rate alternatives.
• Increased stress for potential first-home buyers: Rising repayments make budgeting and loan approvals more challenging.

According to Canstar data, 34 lenders have hiked at least one fixed rate in the past month alone, highlighting how widespread the shift is.

Impact on Everyday Australians

Fixed-rate mortgage increases affect households in multiple ways:

1. Budget Strain: Higher repayments may force cutbacks in daily spending, savings, or investments.
2. Decision Paralysis: Uncertainty about further hikes can delay property purchases.
3. Stress and Wellbeing: Financial anxiety can contribute to sleep issues, relationship strain, and mental fatigue.

Tools like the MyMoneyMedic PulseCheck can help you assess how financial stress is affecting your overall wellbeing.

Tips to Navigate Higher Fixed Rates

💡 Practical Advice for Homeowners and Borrowers

1. Review Your Mortgage Options
   Check alternative lenders — smaller banks or credit unions may still offer competitive rates.
2. Consider Refinancing
   If your fixed rate is significantly higher than the market, refinancing might reduce monthly repayments.
3. Strengthen Your Budget
   Identify non-essential expenses to reduce pressure and build an emergency buffer.
4. Stay Informed on RBA Decisions
   Upcoming cash rate changes may further influence mortgage costs. Reliable sources include RBA updates and Canstar analysis.
5. Take Care of Your Wellbeing
   Financial stress can spill over into your mental health. Activities like mindfulness, exercise, or speaking with a trusted advisor can help. Learn more via the MyMoneyMedic Care Portal:
   👉 Care Portal

RBA Leaves Interest Rates On Hold At 3.6% With Hikes Expected This 2026 | 10 News

The Reserve Bank has left rates on hold at 3.6% in the final rates decision for 2025.

While the cash rate remains steady for now, rate hikes are expected this 2026 in bad news for mortgage holders.

Final Thoughts: Staying in Control Amid Rising Rates

Triple-rate hikes may feel alarming, but understanding your options and taking proactive steps can protect your financial wellbeing. At MyMoneyMedic, we believe that financial clarity and planning reduce anxiety and support long-term stability.

Even in times of rate volatility, small actions — budgeting, monitoring rates, and seeking support — can make a big difference in staying confident and in control.