Brisbane residents are the most worried about household bills in Australia, according to a new study by appliance brand Electrolux. The city recorded a Worry Score of 78.30 out of 100, well above every other city studied. The news comes as Reserve Bank deputy governor Andrew Hauser said inflation was tracking materially worse than expected, raising the chance of a rate rise on November 3. If the cash rate rises by 25 basis points, it would reach 4.85 per cent, its highest level since 2008.
Loan lodgements in South Australia have fallen 25 per cent since January, before the rate rise cycle began, according to Loan Market's October loan trends report. The biggest drop was among investors, down 39 per cent, while owner-occupier upgraders fell 25 per cent and first-home buyers dropped 10 per cent. Loan Market credit expert Shay Waraker said buyers may be waiting to see whether prices fall further. Refinancing has risen to a record 57 per cent nationwide in September.
Mortgage repayments now consume a record 50.9 per cent of family income, according to PRD Real Estate's latest report. Four interest rate rises this year and bigger loans have pushed housing affordability to a new low. Loan Market figures show lodgements, excluding refinancing, have fallen 24 per cent nationally since January, with investors dropping 44 per cent. Queensland recorded the sharpest fall, with investor lodgements down 56 per cent. Refinancing reached a record 57 per cent of Loan Market lodgements in September, as homeowners seek more room in their budgets.
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Home prices in many Australian suburbs have grown sharply since 2011, when interest rates were last this high. Analysis of realestate.com.au data shows the largest gains, with New South Wales and Queensland accounting for eight of the top ten house-price performers. The median sale price in Pokolbin, in the NSW Hunter Valley, is up 417% on 2011. Realestate.com.au senior economist Anne Flaherty says households now spend a much larger share of their income on housing. The Reserve Bank has raised the cash rate to 4.6%, and home prices are now 3.3% below their March 2026 peak.
Property prices in many Australian suburbs have grown strongly since 2011, when interest rates were last at this level. Analysis of realestate.com.au data found the Hunter Valley suburb of Pokolbin had the largest rise in house sale prices, up 417%. Gold Coast and Sunshine Coast suburbs featured widely among the top performers. Economist Anne Flaherty said average new home loans have risen from about $282,400 in November 2011 to $731,000 by June 2026, making housing costs a larger share of household incomes.
Homeowners are watching next week's inflation data closely, as it could decide whether the Reserve Bank lifts interest rates again. Economist David Koch said a higher than expected figure would likely prompt a rate rise, while a result at or below 3.6 per cent may bring a short reprieve. Mortgage holders with an average loan of about $731,000 already pay $464 more each month after four rate hikes this year. Loan lodgements to buy homes fell 24 per cent from January, with investor lodgements dropping 44 per cent nationally.
Reserve Bank deputy governor Andrew Hauser has warned the bank faces hard choices and that inflation risks have escalated since its August forecasts. Oil prices are about a third higher than the bank assumed in August, he said. Underlying inflation stood at 3.6 per cent in the 12 months to August, the fourth month in a row without easing. Mr Hauser said some people are unsure inflation will return to target, which he called a central banker's nightmare. The bank's board meets from 2 to 3 November, with a rate decision to follow.
Reserve Bank deputy governor Andrew Hauser has hinted at further interest rate rises, saying the bank faces hard choices. Speaking at the Citi Investment Conference 2026, he said inflation is running higher than the bank expected in August, with headline inflation at 4.0 per cent. Hauser said the bank must weigh tackling inflation against a weakening jobs market, where unemployment rose to 4.7 per cent. He also said renters and low-income households feel the pain of higher inflation most, and that the bank cannot stand in the way of rising oil prices.
Mortgage holders can expect interest rates to stay higher for longer, whether or not the Reserve Bank lifts them again. Assistant governor Christopher Kent said neutral rates, the level needed to keep inflation low, appear to be rising in Australia and abroad. The cash rate sits at 4.6 per cent, its highest in 15 years. Markets do not expect rates to fall below current levels before mid-2028. Commonwealth Bank chief economist Luke Yeaman said heavy government and AI company spending is reducing how well rates slow demand.
An economist has warned that mortgage holders could face higher interest rates for decades as the Reserve Bank fights stubborn inflation. Warren Hogan of EQ Economics said the bank had lost patience and could raise rates again in November. The Reserve Bank has lifted the cash rate four times this year, to 4.60 per cent. Headline inflation rose to 4.0 per cent, above the bank's 2 to 3 per cent target. Commonwealth Bank's chief economist, Luke Yeaman, said further rate rises risked tipping the economy over the edge.
Around 462,000 Australian mortgage holders plan to refinance their home loan with a different lender within the next 12 months, according to Finder research. The plans come as the Reserve Bank raised the cash rate to 4.6 per cent in September, its fourth rate hike of 2026. Finder money and home loans expert Richard Whitten said borrowers were looking for ways to ease rising repayments. Finder figures show a 0.5 percentage point difference in interest rate on a $500,000, 30-year loan adds more than $58,000 over the loan's life.
Suncorp Bank customers face potential mortgage repayment increases following ANZ's acquisition. The bank notified borrowers that minimum repayments may rise by hundreds of dollars due to policy differences between the institutions. ANZ's approach to calculating repayments differs from Suncorp's, potentially impacting customers who have made advance payments. Suncorp CEO Malcolm Stedman assured most customers will see no change, but those with extra repayments could face higher minimum payments if no action is taken. Consumer advocates argue for stronger protections in the mortgage market to prevent such surprises.
Mortgage repayments are now cheaper than rent in some suburbs, as high rents and falling property prices open a window for tenants. Guardian Australia's analysis of Cotality data found median rents in inner-city Melbourne, suburban Canberra and Darwin nearly match weekly loan repayments. In some suburbs, repayments are cheaper than rent for the typical property. Analysts say repayments on new loans rose overall over the past year, as interest rates climbed. Cotality's researcher said the price drops in apartment-heavy areas were anomalies, and most houses remain more expensive to buy than rent.
Bank of Queensland plans to compete more aggressively in the mortgage market through its digital-only brands, ME and Virgin Money. The bank reported a statutory net profit after tax of $250 million for the year ended August 31, up 88 per cent, after a goodwill writeoff the previous year. Its cash earnings fell seven per cent to $358 million, while home-loan lending dropped eight per cent to $4.6 billion. Chief executive Rod Finch said the bank was now more confident returning to the market after restructuring.
Mortgage demand fell 19.2 per cent year-on-year in September, its sharpest drop since 2022, despite national house prices slipping 1.1 per cent. Equifax data showed new home loan applications dropped 22.1 per cent. Mortgages for buyers aged 18 to 25 fell by a quarter, and those for 26 to 35 year olds slumped 22.5 per cent. Equifax chief solution officer Kevin James said strict serviceability testing and high interest rates were holding buyers back.
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Australia's jobless rate climbed to 4.7 per cent in September, up from 4.6 per cent in August and the highest since the post-Covid period, according to fresh Australian Bureau of Statistics figures. Economists said the softening labour market may give the Reserve Bank reason to pause its rate increases, though several warned that inflation could still prompt another hike. KPMG's Brendan Rynne said the Reserve Bank would have mixed feelings, while VanEck's Russel Chesler pointed to stubborn inflation driven by oil prices and local cost pressures.
Minutes from the Reserve Bank's September meeting show a fifth rate hike in 2026 is still under consideration. The board raised the cash rate to 4.6% last month, citing the Middle East war, AI-driven demand and supply imbalances. Higher energy prices and rising AI component costs are adding pressure on inflation. Housing prices have fallen and new lending has dropped, while scheduled mortgage payments sit near their 2024 peak. The next rates decision is due on 3 November, with markets pricing in a 27% chance of a hike.
Reserve Bank chief economist Sarah Hunter has said housing is the quirk that strikes most newcomers to Australia. Commentators argue the focus is driven by the country's concentrated banking sector, which mostly offers variable-rate home loans. Changes to interest rates, used to control inflation, therefore hit many households quickly. Writers also say property has been promoted as a wealth-building asset, and that housing is not treated as a human right. AustralianSuper chief executive Paul Schroder has warned that Australia spends too much on housing.
