The cost of living is at its highest point in more than two decades. Even with the recent home loan interest rate cuts, household budgets are still feeling squeezed, and now rates seem to be rising again.

Many Aussie homeowners are still worried about their monthly mortgage repayments spiralling out of control, especially with lenders lifting rates in January even before the RBA did in February. This is especially concerning for mortgage holders with lower fixed rates that are about to revert to variable.

But Compare Club’s home loans expert Sophie Matthews says it’s not too late to switch lenders and find a home loan that can keep your repayments from overwhelming your budget, even as your living costs increase.

Below, Sophie answers some common questions she hears when speaking to concerned homeowners.

Q: What do conditions look like for the rest of the year, for homeowners and home buyers?

Sophie Matthews: “Interest rates have risen a lot in the past couple of years, with many lenders passing on the full cash rate hikes and seeking to increase out of cycle as well. While last year's cash rate cuts were helpful, lenders were slow to pass them on, and now the cash rate is definitely on the way up again. There’s no doubt that there's more pain on the way in the housing market too as home prices are rising across most states.

“Homeowners and buyers should brace for sustained higher home prices and while mortgage costs have moderated a little, we'll not see them fall back to 2021 costs any time soon.

“Homeowners currently on fixed rate mortgages that expire soon should begin exploring their options now. They need to be prepared for a different landscape when their fixed rate period ends.”

Q: We’ve seen the news that inflation is rising again.^ What does this mean for homeowners?

Sophie Matthews: “Inflation is on the way up again, and this means rates aren't coming down again in a hurry. The Reserve Bank of Australia (RBA) cut the cash rate three times in 2025, but they've started 2026 with a rate rise - which is not great news. Now it's up to you to get lenders competing for your home loan business again. Talk to a trusted mortgage broker to find yourself the best mortgage you can get. Remember that not all lenders passed last year's rate cuts on to borrowers, and none of The Big Four did it speedily. There are other lenders to look at besides them"^^

"What does this mean for the average Australian household? Put simply, it’s a strain on already-stretched family budgets, and it's your chance to find a better home loan for one of your biggest household costs - your mortgage."

"I may sound like a broken record, but the sooner homeowners review their mortgage and get themselves onto a more competitive product, the sooner they save money, get ahead on their repayments, and are in a better position to weather any additional rate increases, not to mention those higher living costs.”

Q: What can new home buyers do to secure a good rate?

Sophie Matthews “The main thing is to talk to a mortgage broker or lender well ahead of your property search to find out what your borrowing capacity is and what your best lender and loan options are.

Getting a pre-approval puts you in a much stronger buying position. It helps you work out how much you can realistically afford to borrow, and which lenders and loans best match your financial situation.”

You can also try out refinancing and borrowing scenarios with our calculators.

Our home loan experts can help you navigate the fast-changing home loan market, and manage your finances to tackle the rising cost of living. Speak to our team today.

^RBA inflation commentary February 2026. ^^Three and out: rate cut story is running out of puff