Homeowners fork out over $1,300 more per month than pre-RBA rate hikes

A silhouetted man stares out of the window of his home pensively.

According to a new report from Mozo, the average Australian home loan customer now pays over $1,337 more per month than in May 2022, before the Reserve Bank of Australia (RBA) began its rate-hiking cycle to slow inflation. 

Mozo finance expert, Rachel Wastell, says the pressure is on for Australian homeowners to find the extra money each month. 

“Thirteen rate hikes and the most aggressive rate hiking cycle since the early 1990s is putting significant pressure on mortgage holders as they struggle to cover rising repayments,” Wastell said.

“The analysis shows that most Aussie mortgage holders have most likely had to find an extra thousand dollars or more every month. That’s nothing to sneeze at, especially in the lead-up to Christmas.”

The 13th RBA hike in November adds extra $95 to the monthly bill 

In November alone, the average Australian's repayment can be expected to swell by $95 after the 13th RBA rate hike pushed rates up earlier this month. 

But on a state-by-state basis, some are looking at a monthly rise of almost $120 more – hardly change you’d find digging between the sofa cushions.

State by state: How much are home loan repayments rising by?

The average Australian home loan size is $598,867, according to ABS lending indicators, which is where the average repayment increase of $1,337 comes from.

But that figure differs wildly depending on the state. 

Borrowers in the Northern Territory, where the average home loan size is $437,821, have seen repayments increase by $977 on average since May 2022, bringing monthly repayments to $3,058. 

But those in New South Wales, where homes are vastly more expensive, at an average home loan size of $756,821, have seen the average repayment balloon by $1,690 per month – making NSW the state with the most expensive repayments, at $5,286 on average.

RegionAverage home loan size*
Average monthly repayment before the November RBA rate hike (6.62% AVR)
Average monthly repayment after the November RBA rate hike (6.87% AVR)
Increase in monthly repayment after the November rate hike ($)
Total $ increase since RBA started the rate hiking cycle in May 2022
Australia
$598,867
$4,089
$4,183
$95
$1,337
NSW
$756,821
$5,167
$5,286
$119
$1,690
Vic
$594,155
$4,056
$4,150
$94
$1,326
Qld
$537,915
$3,672
$3,757
$85
$1,201
SA
$496,587
$3,390
$3,469
$78
$1,109
WA
$475,405
$3,246
$3,321
$75
$1,061
Tas
$460,183
$3,142
$3,214
$73
$1,027
NT
$437,821
$2,989
$3,058
$69
$977
ACT
$587,307
$4,010
$4,102
$93
$1,311

Source: mozo.com.au based on average owner occupier loan size from September 2023 ABS Lending Indicators, using the average advertised variable home loan rate in the Mozo database for owner occupiers paying principal and interest with a loan-to-value ratio of 80%. The comparison between repayment amounts is using the average variable rate of 3.02% p.a. from the 3rd May 2022 and the average variable rate of 6.62% p.a. on the 6th November 2023 with 0.25% p.a. added to make 6.87% p.a.

Wastell recommends keeping an eye on the market to find lower interest rates as a way to help lower your mortgage repayments, especially if your current rate starts with a 6, 7, or 8. 

While the pickings are slimmer than last month, becoming few and far between, there are still lenders out there offering rates below 5.75% p.a., meaning it could be a good time to refinance your home loan if you can.  

Home loan rates below 5.75% p.a. 

For owner-occupiers paying principal & interest on a $400,000 home loan, with a loan-to-value ratio (LVR) of <80%, options include: 

  • Homeloans360 | Owner Variable Home Loan | 5.59% p.a. (5.59% p.a. comparison rate*)
  • Pacific Mortgage Group | Standard Variable Home Loan | 5.59% p.a. (5.59% p.a. comparison rate*)
  • Resi | Agility Variable Home Loan | 5.69% p.a. (5.74% p.a. comparison rate*)
  • The Capricornian | Country to Coast Variable Rate Offset Home Loan | 5.69% p.a. (5.70% p.a. comparison rate*)
  • The Mutual Bank | Special Budget Home Loan | 5.69% p.a. (5.70% p.a. comparison rate*)
  • Yellow Brick Road | Agility Variable Home Loan | 5.69% p.a. (5.74% p.a. comparison rate*)
  • BankVic | Variable Home Loan | 5.70% p.a. (5.70% p.a. comparison rate*)
  • Unloan | Unloan Variable | 5.74% p.a. (5.65% p.a. comparison rate*). 

While those are among the lowest home loan interest rates in the Mozo database, there are still a few lenders out there offering rates below 6% p.a. 

Compare home loan rates below to see what the market is offering.

Home loan comparisons on Mozo - last updated 23 February 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    6.05% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Compare
    Details
  • Mozo Expert Choice Badge
    Home Variable Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

    Compare
    Details
  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.11% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details
  • Straight Up

    Obliterate, Investor, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.34% p.a. variable
    6.34% p.a.

    Investors get a low variable rate depending on your deposit with Athena’s Straight Up Investor Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 3 years
    6.52% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Compare
    Details
  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    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.

    Compare
    Details

* 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

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