Aussies pay equivalent of Apple CEO's net worth to cover monthly mortgage

By Jack Dona · · 2 min read
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New analysis from Mozo reveals Australians are collectively paying an extra $3 billion per month to cover rising home loan repayments after the 13 cash rate hikes since May 2022.

This staggering figure scrapes in just under Apple CEO Tim Cook’s net worth, according to Forbes .

The rate hikes from the Reserve Bank of Australia (RBA) have hit Aussies harder and faster than central banks in other advanced economies, forcing Australians to find an extra $60 billion since the rate hikes began, despite the cash rate being almost 1% lower than the RBA’s US or UK counterparts.

“In comparison to other economies, Aussies really feel the pinch of every cash rate hike, and this can be seen in the exorbitant amount of interest now being paid on mortgages down under,” says Peter Marshall, Mozo banking and rates expert.

Most Aussies are on a variable rate, contributing to the 'disproportionate burden' 

Marshall says Australian borrowers are more exposed to rate hikes because of the make-up of the Australian mortgage market, compared to that of the US or UK. 

“The disproportionate burden of these rate hikes is because the Australian mortgage market is predominantly variable rate home loans, and cash rate hikes are passed on faster to those with variable rate mortgages,” he said. 

In Australia, variable home loans comprise about 70% of all loans , compared to just 5% in the US and 20% in the UK, according to the IMF . 

“RBA cash rate hikes have hit our mortgage market harder than those countries with mostly fixed-rate mortgages, so the pain for Aussies has been more intense.”

To put pain into numbers, the average Australian home loan now costs $1,338 more per month than it did two years ago, in May 2022. 

While every Australian state and territory has felt the pinch of monetary policy, New South Wales has been slugged with an extra $1,638 a month, taking the average repayment in May 2024 to $5,174.

A table showing the differences in the average home loan size, repayment, repayment increase, and more from May 2022 to May 2024.

Australian borrowers struggling to find the extra cash each month can compare home loans to see if there’s a lower interest rate to refinance with. 

The current average variable rate in the Mozo database is 6.80% p.a. (OO, $400k, <80% LVR). However, at 3 May 2024 there were over 190 variable rates that came in below the average. 

This means Australians on a rate above the average may have plenty of options to help shave down the monthly mortgage bill. Take a look at the featured home loans below to kickstart your search. 

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 22 November 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

Showing 6 of 430 home loans. Use the filters to see more
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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