Australia's banks lift mortgage rates in wake of RBA's fifth cash rate hike this year

Australia’s four major banks, Commonwealth Bank, Westpac, NAB and ANZ, have announced 0.25 percentage point increases to variable mortgage rates following the Reserve Bank of Australia’s fifth rate hike of 2026, which lifted the cash rate to an 18-year high of 4.85%, adding approximately $79 to monthly repayments on a $500,000 mortgage and increasing financial pressure on households and businesses already grappling with elevated borrowing costs. More from ABC News.

Meanwhile, Perth’s property market has recorded a 5.7% decline in median dwelling values over the past three months, with prices falling to $942,018, as financial experts warn that rising mortgage repayments, an 18-year high in interest rates and increasing job losses pose greater risks to financially stretched homeowners than declining property values, particularly as Australia’s unemployment rate reaches 4.7% and further price declines of up to 10% are forecast. More from ABC News.

Similarly, regional Queensland’s property market has fallen 4% since May, with declines of up to 6% across parts of south-east Queensland, as higher interest rates, weakening buyer confidence and reduced borrowing capacity put further pressure on property values, with homes now taking an average of 43 days to sell, double the time recorded a year ago, while investor inquiries have fallen more than 30% since May and further price declines are expected in the coming months. More from ABC News.