While increased repayments loom, there’s an important consideration: the assumption that lenders will fully transfer the rate hike to their customers.

This won’t be the case for everyone, as not all borrowers opted to reduce their repayments when rates dropped last year.

Data from Canstar reveals that approximately 80% of NAB’s variable rate customers, along with the “vast majority” of those with CBA, maintained their repayment levels, thereby gaining some advantageous flexibility now.

“Many borrowers are well-placed to handle a rate increase, having kept their monthly repayments steady following the three cuts in 2025,” remarked Sally Tindall, Canstar’s Director of Data Insights.

“However, the prospect of paying more interest and allocating less towards reducing their debt won’t be a welcome change.”

“This unexpected shift back to rate hikes serves as a stark reminder that both borrowers and renters often bear the brunt of efforts to control inflation,” she added.

“For households who needed every opportunity to drop their monthly repayments last year and continue to juggle tight budgets, a return to rate hikes could put them in a rock and a hard place.”